Adobe Systems (NASDAQ:ADBE) Lowered to “Hold” at Zacks Investment Research

Zacks Investment Research downgraded shares of Adobe Systems (NASDAQ:ADBE) from a buy rating to a hold rating in a research report released on Tuesday, December 19th.

According to Zacks, “Adobe has been making great efforts toward establishing its presence in cloud-related software areas such as documents and marketing. Adobe Experience Manager, which enables brands to offer a personalized experience, is also witnessing robust growth. Year to date, the stock has outperformed the industry it belongs to. We remain optimistic about Adobe’s market position, compelling product lines, continued innovation, solid adoption of Creative Cloud and Adobe marketing cloud.  Also, its acquisition of TubeMogul will help the company to build its position in the expanding Digital Marketing space. However, end-market recovery appears slow which remains a matter of concern. Year to date, the stock has outperformed the industry it belongs to.”

A number of other analysts have also commented on ADBE. Barclays reissued a buy rating and issued a $167.00 target price on shares of Adobe Systems in a report on Friday, September 15th. Piper Jaffray Companies reissued a buy rating and issued a $180.00 target price on shares of Adobe Systems in a report on Tuesday, September 12th. Jefferies Group reaffirmed a buy rating and issued a $175.00 price objective on shares of Adobe Systems in a report on Tuesday, September 12th. Robert W. Baird reaffirmed a buy rating and issued a $160.00 price objective on shares of Adobe Systems in a report on Friday, September 1st. Finally, Moffett Nathanson began coverage on Adobe Systems in a report on Wednesday, September 6th. They issued a buy rating and a $195.00 price objective for the company. Eight analysts have rated the stock with a hold rating, twenty-five have assigned a buy rating and one has given a strong buy rating to the company. The company presently has an average rating of Buy and a consensus target price of $187.06.

Adobe Systems (ADBE) traded up $1.81 on Tuesday, hitting $188.92. The stock had a trading volume of 1,585,300 shares, compared to its average volume of 3,000,000. The stock has a market cap of $93,130.00, a PE ratio of 55.73, a PEG ratio of 2.38 and a beta of 1.05. The company has a current ratio of 2.05, a quick ratio of 2.05 and a debt-to-equity ratio of 0.23. Adobe Systems has a 52 week low of $107.06 and a 52 week high of $188.94.

Adobe Systems (NASDAQ:ADBE) last released its earnings results on Thursday, December 14th. The software company reported $1.26 EPS for the quarter, beating the Zacks’ consensus estimate of $1.16 by $0.10. Adobe Systems had a return on equity of 22.57% and a net margin of 23.20%. The company had revenue of $2.01 billion during the quarter, compared to analysts’ expectations of $1.95 billion. During the same quarter last year, the business posted $0.90 EPS. The firm’s revenue for the quarter was up 24.8% compared to the same quarter last year. sell-side analysts predict that Adobe Systems will post 4.58 EPS for the current fiscal year.

In related news, Director John E. Warnock sold 6,800 shares of the business’s stock in a transaction that occurred on Friday, October 20th. The stock was sold at an average price of $174.20, for a total value of $1,184,560.00. Following the completion of the sale, the director now owns 16,088 shares in the company, valued at $2,802,529.60. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Amy Banse purchased 1,125 shares of the stock in a transaction that occurred on Monday, December 18th. The stock was purchased at an average price of $177.35 per share, with a total value of $199,518.75. Following the acquisition, the director now directly owns 31,453 shares of the company’s stock, valued at approximately $5,578,189.55. The disclosure for this purchase can be found here. Insiders have sold 88,772 shares of company stock worth $15,798,527 over the last three months. 0.38% of the stock is currently owned by insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. FMR LLC boosted its holdings in shares of Adobe Systems by 4.9% in the second quarter. FMR LLC now owns 35,647,268 shares of the software company’s stock valued at $5,041,950,000 after purchasing an additional 1,651,762 shares during the period. BlackRock Inc. lifted its holdings in Adobe Systems by 8.2% during the second quarter. BlackRock Inc. now owns 34,445,217 shares of the software company’s stock worth $4,871,931,000 after buying an additional 2,621,275 shares during the period. Vanguard Group Inc. lifted its holdings in Adobe Systems by 2.9% during the second quarter. Vanguard Group Inc. now owns 33,998,738 shares of the software company’s stock worth $4,808,783,000 after buying an additional 943,487 shares during the period. Janus Henderson Group PLC lifted its holdings in Adobe Systems by 784.4% during the second quarter. Janus Henderson Group PLC now owns 11,226,707 shares of the software company’s stock worth $1,587,936,000 after buying an additional 9,957,241 shares during the period. Finally, Polen Capital Management LLC lifted its holdings in Adobe Systems by 3.7% during the third quarter. Polen Capital Management LLC now owns 6,288,816 shares of the software company’s stock worth $938,166,000 after buying an additional 226,286 shares during the period. Hedge funds and other institutional investors own 87.08% of the company’s stock.

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About Adobe Systems

Adobe Systems Incorporated is a software company. The Company offers products and services used by professionals, marketers, knowledge workers, application developers, enterprises and consumers for creating, managing, delivering, measuring, optimizing and engaging with compelling content and experiences.

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