Adobe (NASDAQ:ADBE) Downgraded to Equal Weight Rating by Morgan Stanley

Morgan Stanley downgraded shares of Adobe (NASDAQ:ADBE) from an overweight rating to an equal weight rating in a report issued on Wednesday, Marketbeat Ratings reports. They currently have $450.00 price objective on the software company’s stock, down from their prior price objective of $520.00.

A number of other analysts have also recently issued reports on ADBE. DA Davidson reiterated a “buy” rating and issued a $500.00 target price on shares of Adobe in a research note on Friday, September 12th. Oppenheimer reduced their price objective on shares of Adobe from $500.00 to $460.00 and set an “outperform” rating for the company in a research note on Tuesday, September 9th. JMP Securities reissued a “market perform” rating on shares of Adobe in a research report on Friday, September 12th. Rothschild & Co Redburn lowered Adobe from a “neutral” rating to a “sell” rating and set a $280.00 target price on the stock. in a report on Wednesday, July 2nd. Finally, TD Cowen decreased their price target on Adobe from $470.00 to $420.00 and set a “hold” rating for the company in a research note on Friday, September 12th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, nine have issued a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $433.41.

Adobe Price Performance

ADBE opened at $353.27 on Wednesday. The stock has a fifty day moving average price of $355.60 and a 200 day moving average price of $375.14. The company has a current ratio of 1.02, a quick ratio of 0.99 and a debt-to-equity ratio of 0.53. Adobe has a 1 year low of $330.04 and a 1 year high of $557.90. The stock has a market cap of $149.86 billion, a price-to-earnings ratio of 22.01, a PEG ratio of 1.62 and a beta of 1.48.

Adobe (NASDAQ:ADBE) last posted its quarterly earnings results on Thursday, September 11th. The software company reported $5.31 earnings per share for the quarter, topping analysts’ consensus estimates 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 business’s quarterly revenue was up 10.7% on a year-over-year basis. During the same period last year, the business earned $4.65 EPS. Adobe has set its FY 2025 guidance at 20.800-20.850 EPS. Q4 2025 guidance at 5.350-5.400 EPS. Analysts forecast that Adobe will post 16.65 EPS for the current fiscal year.

Institutional Trading of Adobe

Several hedge funds have recently added to or reduced their stakes in the business. Dakota Community Bank & Trust NA grew its holdings in Adobe by 12.8% in the 2nd quarter. Dakota Community Bank & Trust NA now owns 274 shares of the software company’s stock valued at $106,000 after buying an additional 31 shares during the last quarter. Caldwell Trust Co bought a new stake in shares of Adobe in the second quarter valued at approximately $1,676,000. Watts Gwilliam & Co. LLC acquired a new stake in shares of Adobe in the second quarter worth $397,000. Amiral Gestion increased its position in Adobe by 69.7% during the second quarter. Amiral Gestion now owns 96,949 shares of the software company’s stock worth $37,508,000 after acquiring an additional 39,830 shares during the period. Finally, WT Wealth Management acquired a new position in Adobe during the 2nd quarter valued at $1,632,000. 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.