Adobe (NASDAQ:ADBE) Posts Quarterly Earnings Results, Beats Expectations By $0.12 EPS

Posted by Jim Brewer on Mar 17th, 2023

Adobe (NASDAQ:ADBE – Get Rating) posted its quarterly earnings data on Wednesday. The software company reported $3.80 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.68 by $0.12, Briefing.com reports. Adobe had a return on equity of 36.74% and a net margin of 27.01%. The business had revenue of $4.66 billion during the quarter, compared to analyst estimates of $4.62 billion. During the same period last year, the company earned $2.84 EPS. The company’s revenue for the quarter was up 9.2% on a year-over-year basis.

Adobe Stock Performance

ADBE stock traded up $0.38 during midday trading on Friday, reaching $353.67. The stock had a trading volume of 1,729,050 shares, compared to its average volume of 2,947,669. The firm has a fifty day simple moving average of $352.73 and a two-hundred day simple moving average of $334.30. Adobe has a 52-week low of $274.73 and a 52-week high of $473.49. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.11 and a current ratio of 1.11. The stock has a market cap of $162.19 billion, a PE ratio of 34.98, a P/E/G ratio of 2.08 and a beta of 1.27.

Insider Buying and Selling at Adobe

In related news, CEO Shantanu Narayen sold 15,000 shares of the company’s stock in a transaction that occurred on Friday, January 20th. The stock was sold at an average price of $346.61, for a total value of $5,199,150.00. Following the sale, the chief executive officer now owns 408,866 shares in the company, valued at $141,717,044.26. The sale was disclosed in a legal filing with the SEC, which is available through this link. In related news, CEO Shantanu Narayen sold 15,000 shares of the business’s stock in a transaction on Friday, January 20th. The shares were sold at an average price of $346.61, for a total transaction of $5,199,150.00. Following the completion of the transaction, the chief executive officer now directly owns 408,866 shares in the company, valued at $141,717,044.26. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Mark S. Garfield sold 132 shares of the stock in a transaction dated Monday, December 19th. The stock was sold at an average price of $338.00, for a total value of $44,616.00. Following the sale, the chief accounting officer now directly owns 3,271 shares in the company, valued at $1,105,598. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 26,265 shares of company stock worth $9,067,344. 0.24% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Adobe

Several hedge funds have recently bought and sold shares of the stock. Resurgent Financial Advisors LLC purchased a new position in shares of Adobe in the 4th quarter valued at about $257,000. Aspen Grove Capital LLC purchased a new stake in Adobe in the 4th quarter worth $248,000. Chilton Investment Co. Inc. acquired a new position in Adobe during the fourth quarter worth $232,000. Smith Anglin Financial LLC purchased a new position in Adobe during the fourth quarter valued at $211,000. Finally, Xcel Wealth Management LLC acquired a new stake in shares of Adobe in the fourth quarter valued at about $211,000. Hedge funds and other institutional investors own 79.36% of the company’s stock.

Analysts Set New Price Targets

A number of research firms have recently commented on ADBE. Morgan Stanley upped their price target on shares of Adobe from $382.00 to $385.00 and gave the stock an “equal weight” rating in a report on Thursday. Wolfe Research lowered their price target on shares of Adobe from $440.00 to $420.00 in a research report on Thursday. Evercore ISI lifted their price objective on shares of Adobe from $350.00 to $425.00 in a report on Friday, December 16th. Deutsche Bank Aktiengesellschaft upped their target price on Adobe from $400.00 to $430.00 and gave the stock a “buy” rating in a report on Friday, December 16th. Finally, JPMorgan Chase & Co. lifted their price target on Adobe from $365.00 to $380.00 and gave the company a “neutral” rating in a report on Thursday. Sixteen investment analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company’s stock. According to data from MarketBeat, Adobe presently has an average rating of “Hold” and an average price target of $415.70.

Adobe Company Profile

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Adobe, Inc engages in the provision of digital marketing and media solutions. It operates through the following segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers creative cloud services, which allow members to download and install the latest versions of products, such as Adobe Photoshop, Adobe Illustrator, Adobe Premiere Pro, Adobe Photoshop Lightroom and Adobe InDesign, as well as utilize other tools, such as Adobe Acrobat.