Adobe (NASDAQ:ADBE) Issues Earnings Results

Adobe (NASDAQ:ADBE) issued its earnings results on Thursday. The software company reported $4.09 earnings per share for the quarter, topping analysts’ consensus estimates of $3.98 by $0.11, MarketWatch Earnings reports. The firm had revenue of $4.89 billion during the quarter, compared to analyst estimates of $4.87 billion. Adobe had a net margin of 26.34% and a return on equity of 36.84%. The company’s quarterly revenue was up 10.3% on a year-over-year basis. During the same quarter last year, the business earned $2.63 earnings per share. Adobe updated its Q4 guidance to $4.10-4.15 EPS and its Q4 2023 guidance to $4.10-$4.15 EPS.

Adobe Stock Down 4.2 %

ADBE stock traded down $23.27 during mid-day trading on Friday, reaching $528.89. The company had a trading volume of 9,774,477 shares, compared to its average volume of 3,226,019. The company has a debt-to-equity ratio of 0.24, a quick ratio of 1.16 and a current ratio of 1.16. The company has a market capitalization of $241.07 billion, a price-to-earnings ratio of 50.47, a price-to-earnings-growth ratio of 3.32 and a beta of 1.33. The firm has a fifty day simple moving average of $529.21 and a 200 day simple moving average of $440.68. Adobe has a fifty-two week low of $274.73 and a fifty-two week high of $570.24.

Analyst Ratings Changes

A number of equities analysts have weighed in on the stock. 888 reiterated a “maintains” rating on shares of Adobe in a research report on Friday, June 16th. Wolfe Research increased their price target on shares of Adobe from $580.00 to $650.00 and gave the stock an “outperform” rating in a report on Friday. Evercore ISI increased their price target on shares of Adobe from $590.00 to $605.00 and gave the stock an “outperform” rating in a report on Friday. Barclays increased their price target on shares of Adobe from $620.00 to $640.00 and gave the stock an “equal weight” rating in a report on Friday. Finally, Mizuho reissued a “buy” rating and issued a $630.00 price target on shares of Adobe in a report on Friday. Nine investment analysts have rated the stock with a hold rating and twenty have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, Adobe presently has a consensus rating of “Moderate Buy” and a consensus target price of $573.07.

Insider Buying and Selling at Adobe

In related news, CEO Shantanu Narayen sold 35,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 22nd. The stock was sold at an average price of $478.03, for a total transaction of $16,731,050.00. Following the transaction, the chief executive officer now owns 403,352 shares in the company, valued at approximately $192,814,356.56. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In other Adobe news, CEO Shantanu Narayen sold 35,000 shares of Adobe stock in a transaction that occurred on Thursday, June 22nd. The stock was sold at an average price of $478.03, for a total value of $16,731,050.00. Following the transaction, the chief executive officer now directly owns 403,352 shares in the company, valued at approximately $192,814,356.56. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Mark S. Garfield sold 298 shares of the firm’s stock in a transaction that occurred on Friday, August 4th. The shares were sold at an average price of $526.74, for a total value of $156,968.52. Following the completion of the sale, the chief accounting officer now directly owns 4,055 shares of the company’s stock, valued at $2,135,930.70. The disclosure for this sale can be found here. Insiders have sold 43,089 shares of company stock valued at $20,720,115 in the last quarter. Corporate insiders own 0.24% of the company’s stock.

Hedge Funds Weigh In On Adobe

Hedge funds have recently bought and sold shares of the stock. Wambolt & Associates LLC grew its position in shares of Adobe by 7.5% in the second quarter. Wambolt & Associates LLC now owns 1,802 shares of the software company’s stock valued at $881,000 after purchasing an additional 126 shares during the period. Neo Ivy Capital Management purchased a new stake in shares of Adobe in the second quarter valued at $673,000. Equitable Holdings Inc. grew its position in shares of Adobe by 12.0% in the second quarter. Equitable Holdings Inc. now owns 2,650 shares of the software company’s stock valued at $1,296,000 after purchasing an additional 283 shares during the period. Invesco LLC purchased a new stake in shares of Adobe in the second quarter valued at $1,409,000. Finally, Imprint Wealth LLC purchased a new stake in shares of Adobe in the second quarter valued at $2,200,000. Hedge funds and other institutional investors own 80.00% 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.