Adobe (NASDAQ:ADBE) Earns Outperform Rating from Royal Bank of Canada

Royal Bank of Canada reiterated their outperform rating on shares of Adobe (NASDAQ:ADBE) in a research note issued to investors on Friday, Benzinga reports. The firm currently has a $610.00 price target on the software company’s stock.

A number of other research firms have also recently commented on ADBE. Sanford C. Bernstein dropped their price target on Adobe from $660.00 to $644.00 and set an outperform rating on the stock in a research report on Friday. Barclays boosted their target price on shares of Adobe from $650.00 to $675.00 and gave the company an overweight rating in a report on Wednesday, September 4th. BMO Capital Markets increased their price target on shares of Adobe from $525.00 to $580.00 and gave the stock an outperform rating in a research note on Friday, June 14th. Evercore ISI reissued an outperform rating and set a $650.00 price objective on shares of Adobe in a research note on Friday, June 7th. Finally, Melius lowered shares of Adobe from a buy rating to a hold rating and set a $510.00 target price for the company. in a report on Monday, June 10th. Two equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and eighteen have assigned a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of Moderate Buy and an average target price of $606.58.

Adobe Stock Performance

NASDAQ:ADBE opened at $521.50 on Friday. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 0.28. Adobe has a twelve month low of $433.97 and a twelve month high of $638.25. The stock has a market cap of $231.23 billion, a P/E ratio of 46.86, a price-to-earnings-growth ratio of 3.03 and a beta of 1.29. The firm’s fifty day simple moving average is $552.68 and its 200 day simple moving average is $519.46.

Adobe (NASDAQ:ADBE) last announced its quarterly earnings results on Thursday, September 12th. The software company reported $4.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.53 by $0.12. Adobe had a net margin of 24.86% and a return on equity of 40.67%. The company had revenue of $5.41 billion for the quarter, compared to analysts’ expectations of $5.37 billion. During the same quarter in the previous year, the company earned $3.26 earnings per share. Adobe’s quarterly revenue was up 10.6% on a year-over-year basis. As a group, research analysts predict that Adobe will post 14.69 EPS for the current year.

Insider Activity at Adobe

In other Adobe news, CEO Shantanu Narayen sold 25,000 shares of the firm’s stock in a transaction dated Thursday, June 27th. The stock was sold at an average price of $544.11, for a total value of $13,602,750.00. Following the transaction, the chief executive officer now directly owns 379,660 shares of the company’s stock, valued at $206,576,802.60. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In other Adobe news, CEO Shantanu Narayen sold 25,000 shares of the stock in a transaction that occurred on Thursday, June 27th. The shares were sold at an average price of $544.11, for a total value of $13,602,750.00. Following the transaction, the chief executive officer now directly owns 379,660 shares in the company, valued at $206,576,802.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Mark S. Garfield sold 151 shares of the business’s stock in a transaction on Tuesday, July 16th. The shares were sold at an average price of $564.60, for a total transaction of $85,254.60. Following the sale, the chief accounting officer now directly owns 2,797 shares of the company’s stock, valued at approximately $1,579,186.20. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 27,259 shares of company stock worth $14,855,543. 0.15% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Tradewinds Capital Management LLC raised its stake in Adobe by 266.7% during the 1st quarter. Tradewinds Capital Management LLC now owns 55 shares of the software company’s stock worth $28,000 after acquiring an additional 40 shares during the period. Salomon & Ludwin LLC increased its stake in shares of Adobe by 346.2% in the first quarter. Salomon & Ludwin LLC now owns 58 shares of the software company’s stock worth $29,000 after purchasing an additional 45 shares in the last quarter. Summit Securities Group LLC bought a new stake in shares of Adobe during the 2nd quarter valued at $33,000. Lynx Investment Advisory purchased a new position in shares of Adobe during the 2nd quarter valued at $39,000. Finally, Hobbs Group Advisors LLC bought a new position in Adobe in the 2nd quarter worth $39,000. Institutional investors own 81.79% of the company’s stock.

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.