Adobe (NASDAQ:ADBE) Trading 5.3% Higher – Should You Buy?

Adobe Inc. (NASDAQ:ADBE)’s share price shot up 5.3% during mid-day trading on Friday . The company traded as high as $348.59 and last traded at $346.26. 7,556,481 shares traded hands during mid-day trading, an increase of 92% from the average session volume of 3,925,777 shares. The stock had previously closed at $328.73.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. DA Davidson reaffirmed a “buy” rating and set a $500.00 price target on shares of Adobe in a research report on Thursday, November 20th. Redburn Partners set a $280.00 price objective on shares of Adobe in a research note on Monday, September 1st. BMO Capital Markets reaffirmed an “outperform” rating and issued a $405.00 target price on shares of Adobe in a research report on Wednesday, October 29th. JMP Securities reiterated a “market perform” rating on shares of Adobe in a report on Friday, September 12th. Finally, Piper Sandler dropped their price target on Adobe from $500.00 to $470.00 and set an “overweight” rating for the company in a research note on Friday, September 12th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, eleven have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, Adobe has an average rating of “Hold” and a consensus target price of $425.85.

Adobe Stock Up 5.3%

The firm has a 50-day simple moving average of $336.77 and a 200 day simple moving average of $360.66. The company has a market capitalization of $144.94 billion, a PE ratio of 21.57, a price-to-earnings-growth ratio of 1.20 and a beta of 1.54. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.02 and a quick ratio of 1.02.

Adobe (NASDAQ:ADBE) last issued its earnings results on Thursday, September 11th. The software company reported $5.31 earnings per share for the quarter, topping the consensus estimate of $5.18 by $0.13. The company had revenue of $5.99 billion during the quarter, compared to the consensus estimate of $5.91 billion. Adobe had a return on equity of 57.54% and a net margin of 30.01%.The company’s revenue was up 10.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $4.65 earnings per share. Adobe has set its FY 2025 guidance at 20.800-20.850 EPS and its Q4 2025 guidance at 5.350-5.400 EPS. On average, research analysts predict that Adobe Inc. will post 16.65 EPS for the current fiscal year.

Insider Buying and Selling at Adobe

In related news, CAO Jillian Forusz sold 149 shares of the firm’s stock in a transaction on Friday, October 31st. The shares were sold at an average price of $337.88, for a total transaction of $50,344.12. Following the completion of the sale, the chief accounting officer directly owned 3,426 shares of the company’s stock, valued at approximately $1,157,576.88. This trade represents a 4.17% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.16% of the company’s stock.

Institutional Trading of Adobe

Large investors have recently modified their holdings of the business. Lathrop Investment Management Co. lifted its holdings in shares of Adobe by 2.8% in the second quarter. Lathrop Investment Management Co. now owns 26,544 shares of the software company’s stock valued at $10,269,000 after purchasing an additional 718 shares in the last quarter. Mcdaniel Terry & Co. grew its holdings in shares of Adobe by 2.8% during the second quarter. Mcdaniel Terry & Co. now owns 39,507 shares of the software company’s stock worth $15,284,000 after buying an additional 1,093 shares in the last quarter. Jackson Thornton Wealth Management LLC acquired a new stake in Adobe in the 2nd quarter valued at approximately $328,000. Koss Olinger Consulting LLC bought a new stake in Adobe in the 1st quarter valued at approximately $305,000. Finally, Bourgeon Capital Management LLC lifted its stake in Adobe by 41.0% in the 2nd quarter. Bourgeon Capital Management LLC now owns 24,680 shares of the software company’s stock valued at $9,548,000 after acquiring an additional 7,176 shares in the last quarter. 81.79% of the stock is currently owned by institutional investors and hedge funds.

About Adobe

Adobe Inc, together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform.