Adobe Inc. (NASDAQ:ADBE) finished Wednesday with an addition of $11.23 to close at $530.71, an upside of 2.16 percent. An average of 2,171,460 shares of common stock have been traded in the last five days. There was a gain of $16.22 in the past week, and it reached a new high 16 times over the past 12 months. The last 20 days have seen an average of 2,280,380 shares traded, while the 50-day average volume stands at 3,315,868.
ADBE stock has increased by 1.02% in the last month. The company shares reached their 1-month lowest point of $503.90 on 08/18/23. With the stock rallying to its 52-week high on 07/31/23, shares of the company touched a low of $274.73 and a high of $552.94 in 52 weeks. It has reached a new high 24 times so far this year and achieved 57.70% or $194.18 in price. In spite of this, the price is down -4.02% from the 52-week high.
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Insider Transactions
ADBE stock investors should be aware that Adobe Inc. (ADBE) stock had its last reported insider trading activity 20 days ago on Aug 04. In this transaction, the insider spent $156,969. EVP, CPO, Creative Cloud, Belsky Scott, disposed of 763 shares at a price of $519.42 on Jul 25. The insider now owns more than $396,317 worth of shares. Prior to that, EVP, CPO, Creative Cloud Belsky Scott went on to Sale 2,191 shares at $520.00 each on Jul 24. An amount of $1,139,320 was transacted.
Valuation Metrics
Adobe Inc. (ADBE) has a trailing price-to-earnings (P/E) ratio of 50.67. The stock’s beta is 1.33. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 13.22, the price-to-book (PB) ratio at 16.38, and the price-to-cash flow ratio at 32.81.
Financial Health
The quick ratio of Adobe Inc. for the three months ended May 30 was 1.20, and the current ratio was 1.20, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.24 and a total debt to equity ratio of 0.24 for the quarter ending May 30. Adobe Inc.’s EBITDA margin for the year ending May 30 is 39.36%, while its operating margin for the same period stands at 33.60%. Its gross profit as reported stood at $15.44 billion compared to revenue of $17.61 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Adobe Inc.’s return on assets was 17.90%.
Earnings Surprise
For the three-month period that ended May 30, Adobe Inc. had $3.63 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $1.29 billion in the quarter, while revenues of $1.25 billion were grew 9.03%. The analyst consensus anticipated Adobe Inc.’s latest quarter earnings to come in at $3.79 per share, but it turned out to be $3.91, a 3.20% surprise. For the quarter, EBITDA amounted to $1.84 billion. Shareholders own equity worth $455.8 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Adobe Inc. (ADBE) price momentum. RSI 9-day as of the close on 23 August was 60.76%, suggesting the stock is Neutral, with historical volatility in this time frame at 23.90%.
As of today, ADBE’s price is $518.09 +3.15% or $16.22 from its 5-day moving average. ADBE is currently trading +3.14% higher than its 20-day SMA and +38.97% higher than its 100-day SMA. However, the stock’s current price level is +11.82% above the SMA50 and +85.61% above the SMA200.
The stochastic %K and %D were 59.84% and 39.10%, respectively, and the average true range (ATR) was 12.57. With the 14-day stochastic at 84.49% and the average true range at 12.71, the RSI (14) stands at 58.72%. The stock has reached 6.40 on the 9-day MACD Oscillator while the 14-day reading was at 4.90.
Analyst Ratings
BofA Securities upgraded Adobe Inc. (NASDAQ: ADBE) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a Neutral. The consensus rating for Adobe Inc. (ADBE) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell ADBE, while 15 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 3 analysts, while 19 others rate it as a “buy”.
What is ADBE’s price target for the next 12 months?
Analysts predict a range of price targets between $428.00 and $660.00, with a median target of $558.00. Taking a look at these predictions, the average price target given by analysts for Adobe Inc. (ADBE) stock is $559.43.
