Insider Selling: Adobe Inc. (NASDAQ:ADBE) CEO Sells 25,000 Shares of Stock

Adobe Inc. (NASDAQ:ADBE - Get Free Report) CEO Shantanu Narayen sold 25,000 shares of the company's stock in a transaction 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 approximately $206,576,802.60. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Adobe Stock Performance

NASDAQ ADBE traded up $8.78 on Friday, reaching $555.54. The stock had a trading volume of 5,077,912 shares, compared to its average volume of 3,590,147. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.16 and a quick ratio of 1.05. The firm has a fifty day moving average of $481.75 and a two-hundred day moving average of $535.99. Adobe Inc. has a 1-year low of $433.97 and a 1-year high of $638.25. The company has a market cap of $248.88 billion, a P/E ratio of 49.63, a price-to-earnings-growth ratio of 2.76 and a beta of 1.27.

Adobe (NASDAQ:ADBE - Get Free Report) last issued its quarterly earnings data on Thursday, June 13th. The software company reported $4.48 EPS for the quarter, beating analysts' consensus estimates of $4.39 by $0.09. The firm had revenue of $5.31 billion for the quarter, compared to analyst estimates of $5.29 billion. Adobe had a return on equity of 40.67% and a net margin of 24.86%. The company's revenue for the quarter was up 10.2% on a year-over-year basis. During the same period in the prior year, the firm posted $3.04 EPS. On average, equities research analysts anticipate that Adobe Inc. will post 14.69 EPS for the current year.

Adobe announced that its board has initiated a stock repurchase program on Thursday, March 14th that authorizes the company to buyback $25.00 billion in outstanding shares. This buyback authorization authorizes the software company to repurchase up to 10.8% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's board believes its stock is undervalued.

Institutional Trading of Adobe

Several large investors have recently bought and sold shares of ADBE. Vanguard Group Inc. raised its position in Adobe by 1.0% in the first quarter. Vanguard Group Inc. now owns 40,648,975 shares of the software company's stock valued at $20,511,473,000 after purchasing an additional 382,803 shares during the last quarter. Morgan Stanley grew its stake in Adobe by 2.7% during the third quarter. Morgan Stanley now owns 10,371,262 shares of the software company's stock worth $5,288,309,000 after purchasing an additional 277,484 shares during the period. Price T Rowe Associates Inc. MD grew its stake in Adobe by 17.6% during the first quarter. Price T Rowe Associates Inc. MD now owns 7,644,050 shares of the software company's stock worth $3,857,189,000 after purchasing an additional 1,146,718 shares during the period. Norges Bank acquired a new stake in Adobe in the fourth quarter valued at approximately $3,277,785,000. Finally, Fisher Asset Management LLC grew its stake in Adobe by 0.4% in the fourth quarter. Fisher Asset Management LLC now owns 4,560,086 shares of the software company's stock valued at $2,720,548,000 after acquiring an additional 16,379 shares during the period. 81.79% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

ADBE has been the topic of several analyst reports. Piper Sandler Companies cut their target price on Adobe from $705.00 to $700.00 and set an "overweight" rating on the stock in a research note on Friday, March 15th. BMO Capital Markets increased their target price on Adobe from $525.00 to $580.00 and gave the company an "outperform" rating in a research note on Friday, June 14th. Royal Bank of Canada reissued an "outperform" rating and issued a $600.00 target price on shares of Adobe in a research note on Friday, June 14th. JMP Securities reissued a "market perform" rating on shares of Adobe in a research note on Friday, June 14th. Finally, Wells Fargo & Company increased their target price on Adobe from $675.00 to $700.00 and gave the company an "overweight" rating in a research note on Friday, June 14th. Two analysts have rated the stock with a sell rating, eight have assigned a hold rating and twenty-one have given a buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $607.67.

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.

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