Royal Bank of Canada Has Lowered Expectations for Adobe (NASDAQ:ADBE) Stock Price

Adobe (NASDAQ:ADBE - Get Free Report) had its target price reduced by research analysts at Royal Bank of Canada from $590.00 to $550.00 in a research note issued on Friday,Benzinga reports. The brokerage currently has an "outperform" rating on the software company's stock. Royal Bank of Canada's price target points to a potential upside of 22.39% from the company's current price.

Other research analysts have also issued research reports about the company. Barclays dropped their target price on Adobe from $675.00 to $645.00 and set an "overweight" rating on the stock in a report on Thursday, December 12th. JMP Securities restated a "market perform" rating on shares of Adobe in a report on Thursday, December 12th. DA Davidson dropped their target price on Adobe from $685.00 to $625.00 and set a "buy" rating on the stock in a report on Thursday, December 12th. UBS Group dropped their target price on Adobe from $525.00 to $475.00 and set a "neutral" rating on the stock in a report on Friday, January 3rd. Finally, Stifel Nicolaus dropped their target price on Adobe from $650.00 to $600.00 and set a "buy" rating on the stock in a report on Thursday, December 12th. One investment analyst has rated the stock with a sell rating, eleven have given a hold rating, seventeen have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $567.81.

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Adobe Stock Up 1.0 %

Adobe stock traded up $4.62 during mid-day trading on Friday, reaching $449.40. The stock had a trading volume of 3,037,985 shares, compared to its average volume of 3,391,287. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.07 and a current ratio of 1.07. Adobe has a fifty-two week low of $403.75 and a fifty-two week high of $587.75. The stock's 50-day simple moving average is $439.56 and its 200-day simple moving average is $487.15. The firm has a market capitalization of $195.62 billion, a PE ratio of 36.24, a price-to-earnings-growth ratio of 2.15 and a beta of 1.37.

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

Insiders Place Their Bets

In related news, Director David A. Ricks purchased 2,250 shares of Adobe stock in a transaction dated Tuesday, January 28th. The stock was bought at an average cost of $443.98 per share, for a total transaction of $998,955.00. Following the completion of the transaction, the director now owns 4,984 shares in the company, valued at $2,212,796.32. This trade represents a 82.30 % increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Jillian Forusz sold 334 shares of Adobe stock in a transaction on Tuesday, January 28th. The shares were sold at an average price of $435.83, for a total value of $145,567.22. Following the completion of the transaction, the chief accounting officer now owns 2,685 shares of the company's stock, valued at approximately $1,170,203.55. This trade represents a 11.06 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 5,075 shares of company stock valued at $2,191,826 over the last ninety days. 0.15% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Adobe

Several hedge funds have recently made changes to their positions in the stock. Copia Wealth Management purchased a new position in Adobe during the fourth quarter worth about $28,000. Wood Tarver Financial Group LLC purchased a new position in Adobe during the fourth quarter worth about $64,000. TFR Capital LLC. purchased a new position in Adobe during the fourth quarter worth about $413,000. Probity Advisors Inc. grew its position in Adobe by 32.2% during the fourth quarter. Probity Advisors Inc. now owns 1,825 shares of the software company's stock worth $812,000 after buying an additional 444 shares in the last quarter. Finally, Audent Global Asset Management LLC grew its position in Adobe by 528.1% during the fourth quarter. Audent Global Asset Management LLC now owns 5,408 shares of the software company's stock worth $2,405,000 after buying an additional 4,547 shares in the last quarter. 81.79% of the stock is currently owned by hedge funds and other institutional investors.

About Adobe

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.