Adobe (NASDAQ:ADBE) Given Outperform Rating at Royal Bank of Canada

Royal Bank of Canada reissued their outperform rating on shares of Adobe (NASDAQ:ADBE) in a report published on Wednesday morning, Benzinga reports. Royal Bank of Canada currently has a $630.00 target price on the software company’s stock.

A number of other equities research analysts have also weighed in on the stock. TheStreet lowered shares of Adobe from a b- rating to a c+ rating in a report on Tuesday, March 19th. Piper Sandler reaffirmed an overweight rating and set a $700.00 price objective on shares of Adobe in a research note on Wednesday. Robert W. Baird dropped their target price on Adobe from $590.00 to $525.00 and set a neutral rating for the company in a report on Friday, March 15th. Evercore ISI decreased their price target on Adobe from $700.00 to $650.00 and set an outperform rating on the stock in a research note on Friday, March 15th. Finally, HSBC dropped their price objective on Adobe from $557.00 to $511.00 and set a hold rating for the company in a research note on Friday, March 15th. Two investment analysts have rated the stock with a sell rating, five have assigned a hold rating and twenty-one have given a buy rating to the stock. Based on data from MarketBeat.com, Adobe currently has an average rating of Moderate Buy and a consensus price target of $620.72.

Adobe Trading Down 0.6 %

Shares of ADBE opened at $504.40 on Wednesday. The firm’s 50 day simple moving average is $573.39 and its 200 day simple moving average is $571.57. The company has a market capitalization of $228.27 billion, a P/E ratio of 48.26, a P/E/G ratio of 2.74 and a beta of 1.29. Adobe has a 1-year low of $331.89 and a 1-year high of $638.25. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.05 and a quick ratio of 1.34.

Adobe (NASDAQ:ADBE) last announced its earnings results on Thursday, March 14th. The software company reported $4.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.38 by $0.10. Adobe had a net margin of 24.08% and a return on equity of 39.12%. The company had revenue of $5.18 billion during the quarter, compared to analyst estimates of $5.14 billion. During the same period in the previous year, the business earned $2.97 earnings per share. The firm’s quarterly revenue was up 11.3% compared to the same quarter last year. Sell-side analysts forecast that Adobe will post 14.57 earnings per share for the current fiscal year.

Adobe declared that its Board of Directors has approved a stock repurchase plan on Thursday, March 14th that permits the company to buyback $25.00 billion in shares. This buyback authorization permits the software company to reacquire up to 10.8% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s management believes its stock is undervalued.

Insider Activity

In related news, insider David Wadhwani sold 6,099 shares of the business’s stock in a transaction dated Wednesday, January 3rd. The shares were sold at an average price of $571.77, for a total transaction of $3,487,225.23. Following the sale, the insider now owns 7,614 shares of the company’s stock, valued at $4,353,456.78. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. In other Adobe news, CAO Mark S. Garfield sold 788 shares of the firm’s stock in a transaction that occurred on Thursday, January 25th. The shares were sold at an average price of $615.42, for a total transaction of $484,950.96. Following the sale, the chief accounting officer now owns 4,055 shares in the company, valued at approximately $2,495,528.10. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider David Wadhwani sold 6,099 shares of Adobe stock in a transaction that occurred on Wednesday, January 3rd. The shares were sold at an average price of $571.77, for a total transaction of $3,487,225.23. Following the transaction, the insider now directly owns 7,614 shares in the company, valued at approximately $4,353,456.78. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 9,162 shares of company stock worth $5,340,250. Corporate insiders own 0.15% of the company’s stock.

Institutional Trading of Adobe

Several institutional investors and hedge funds have recently modified their holdings of ADBE. Iron Horse Wealth Management LLC purchased a new stake in shares of Adobe during the third quarter worth about $25,000. HBC Financial Services PLLC bought a new stake in shares of Adobe during the third quarter valued at approximately $25,000. Garner Asset Management Corp purchased a new position in shares of Adobe in the fourth quarter worth $31,000. Global Wealth Strategies & Associates increased its holdings in Adobe by 57.6% in the 3rd quarter. Global Wealth Strategies & Associates now owns 52 shares of the software company’s stock valued at $27,000 after acquiring an additional 19 shares during the last quarter. Finally, Aspect Partners LLC purchased a new stake in Adobe in the 4th quarter worth $33,000. 81.79% of the stock is currently owned by 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.