Adobe’s (ADBE) “Outperform” Rating Reaffirmed at Royal Bank of Canada

Adobe (NASDAQ:ADBE)‘s stock had its “outperform” rating restated by research analysts at Royal Bank of Canada in a research note issued on Thursday,Benzinga reports. They currently have a $590.00 price objective on the software company’s stock. Royal Bank of Canada’s target price points to a potential upside of 28.14% from the stock’s previous close.

A number of other analysts have also recently issued reports on the company. Citigroup lowered their price objective on Adobe from $616.00 to $590.00 and set a “neutral” rating on the stock in a research report on Monday, December 9th. Bank of America lowered their target price on shares of Adobe from $640.00 to $605.00 and set a “buy” rating on the stock in a research note on Thursday, December 12th. BMO Capital Markets lowered their price objective on Adobe from $600.00 to $570.00 and set an “outperform” rating on the stock in a research note on Thursday, December 12th. Piper Sandler cut their target price on Adobe from $635.00 to $600.00 and set an “overweight” rating for the company in a research report on Thursday, December 12th. Finally, Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and issued a $475.00 price target (down from $600.00) on shares of Adobe in a research report on Wednesday, January 8th. One analyst has rated the stock with a sell rating, ten have given a hold rating, sixteen have issued a buy rating and two have given a strong buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $573.00.

Adobe Stock Performance

Shares of NASDAQ ADBE traded down $2.32 during trading hours on Thursday, hitting $460.44. 916,851 shares of the company’s stock were exchanged, compared to its average volume of 3,640,838. The company’s 50-day moving average price is $449.99 and its 200-day moving average price is $497.68. Adobe has a 1-year low of $403.75 and a 1-year high of $610.33. The stock has a market capitalization of $200.43 billion, a price-to-earnings ratio of 37.13, a PEG ratio of 2.11 and a beta of 1.31. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.07 and a quick ratio of 1.07.

Adobe (NASDAQ:ADBE) last announced its quarterly earnings data on Wednesday, December 11th. The software company reported $4.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.67 by $0.14. Adobe had a net margin of 25.85% and a return on equity of 45.87%. The business had revenue of $5.61 billion for the quarter, compared to the consensus estimate of $5.54 billion. During the same quarter last year, the company posted $3.52 earnings per share. Adobe’s quarterly revenue was up 11.1% on a year-over-year basis. On average, sell-side analysts expect that Adobe will post 16.65 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Amy Banse sold 606 shares of the firm’s stock in a transaction dated Friday, December 6th. The shares were sold at an average price of $550.00, for a total value of $333,300.00. Following the transaction, the director now owns 32,929 shares of the company’s stock, valued at approximately $18,110,950. This trade represents a 1.81 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Scott Belsky sold 922 shares of the firm’s stock in a transaction that occurred on Friday, January 24th. The shares were sold at an average price of $437.28, for a total value of $403,172.16. Following the completion of the transaction, the executive vice president now owns 22,153 shares in the company, valued at $9,687,063.84. This represents a 4.00 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 5,681 shares of company stock worth $2,525,126. 0.15% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Adobe

A number of hedge funds have recently bought and sold shares of the company. Legacy Investment Solutions LLC bought a new position in shares of Adobe during the 3rd quarter worth approximately $26,000. MidAtlantic Capital Management Inc. bought a new position in Adobe in the 3rd quarter valued at $30,000. True Wealth Design LLC raised its stake in shares of Adobe by 141.7% during the 3rd quarter. True Wealth Design LLC now owns 58 shares of the software company’s stock worth $30,000 after purchasing an additional 34 shares during the period. Briaud Financial Planning Inc purchased a new position in shares of Adobe in the 3rd quarter worth about $36,000. Finally, Decker Retirement Planning Inc. bought a new stake in Adobe in the fourth quarter worth about $31,000. 81.79% of the stock is owned by hedge funds and other institutional investors.

Adobe Company Profile

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.