The stock of Adobe Inc. (NASDAQ:ADBE) decreased by -$3.55 on Tuesday to finish at $518.70, down -0.68 percent. The last five days have seen an average of 1,910,540 shares of common stock traded. 24 times new highs were reached in the current year, with a gain of $182.17. The average number of shares traded over the last 20 days was 2,780,395, while the average volume over the last 50 days totaled 3,697,744.
ADBE stock dropped -0.63% since last month. On 08/14/23, the company’s shares reached a one-month low of $505.03. The stock touched a high of $552.94 on 07/31/23, after rallying from a low of $274.73 in 52 weeks. The price of ADBE stock has risen by 54.13% or $182.17 this year, reaching a new high 24 times. Still, the stock price is down -6.19% from the 52-week high.
Insider Transactions
ADBE stock investors should be aware that Adobe Inc. (ADBE) stock had its last reported insider trading activity 12 days ago on Aug 04. On Aug 04, SVP & CAO Garfield Mark S. sold 298 shares at $526.74 each. This transaction resulted in the insider making $156,969. On Jul 25, Belsky Scott sold 763 shares at a price of US$519.42. After the transaction, the insider now owns 23,012 shares. EVP, CPO, Creative Cloud Belsky Scott had earlier sold 2,191 shares on Jul 24 for $520.00 a share. The transaction was completed for $1,139,320.
Valuation Metrics
Adobe Inc. (ADBE) has a trailing price-to-earnings (P/E) ratio of 49.53. Beta for the stock is 1.34. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 13.02, the price-to-book (PB) ratio of 16.01, and the price-to-cash flow ratio of 32.31.
Financial Health
For the three months ended May 30, Adobe Inc.’s quick ratio was 1.20, while its current ratio was 1.20, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending May 30 is 0.24, and the total debt to equity ratio is 0.24. As far as profitability goes, gross margin for the trailing twelve months is 87.80% percent. Adobe Inc.’s EBITDA margin for the year ended May 30 was 39.36%, whereas its operating margin stood at 33.60% for the same period. Based on annual data, it had gross profit of $15.44 billion and revenue of $17.61 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. ADBE’s return on assets (ROA) during the last 12 months has been 17.90%. There was a 26.70% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 33.80%.
Earnings Surprise
According to Adobe Inc.’s quarterly financial report for the quarter that ended May 30, it had $3.63 billion in total debt versus $1.15 billion in cash and short-term investments. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $4.82 billion, while revenues rose by 8.93% to $4.66 billion. It was predicted that Adobe Inc.’s quarterly earnings would be $3.91, but it ended up being $3.79, beating the consensus by 3.20%. EBITDA was $1.84 billion for the quarter. At the end of Adobe Inc.’s most recent quarter ended May 30, its liabilities totaled 13.0 billion, while its total debt was $4.11 billion. Equity owned by shareholders amounts to $455.8 million.
Technical Picture
Here’s a quick look at Adobe Inc.’s (ADBE) price momentum from a technical perspective. As of 15 August, the RSI 9-day stood at 49.13%, suggesting the stock is Neutral, with a 21.25% historical volatility rate.
The stochastic %K and %D were 22.98% and 16.96% respectively, while the average true range (ATR) was 12.46. Based on the 14-day stochastic reading of 28.53%, the RSI (14) reading is 52.65%. On the 9-day MACD Oscillator, the stock is at -3.53, and the 14-day reading is at -8.42.
Analyst Ratings
In its most recent analyst report, Morgan Stanley raised its rating on Adobe Inc. (NASDAQ: ADBE) to an Overweight. Prior to this, analysts firm rated the stock as an Equal-weight. Analysts have assigned Adobe Inc. (ADBE) an Overweight rating. ADBE is a stock that is recommended for selling by 0 brokerage firms, while 16 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 3 rates it overweight and 18 others recommend it as a buy.
What is ADBE’s price target for the next 12 months?
The current consensus forecast for the stock is between $428.00 and $660.00, with a median target price of $558.00. In analyzing these forecasts, the average price target given by analysts for Adobe Inc. (ADBE) is $557.60.
