Adobe (NASDAQ:ADBE) Issues Quarterly Earnings Results, Beats Estimates By $0.11 EPS

Adobe (NASDAQ:ADBE) issued its earnings results on Thursday. The software company reported $4.09 EPS for the quarter, topping analysts’ consensus estimates of $3.98 by $0.11, MarketWatch Earnings reports. The business had revenue of $4.89 billion for the quarter, compared to the consensus estimate of $4.87 billion. Adobe had a net margin of 26.34% and a return on equity of 36.84%. The company’s revenue for the quarter was up 10.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.63 EPS. Adobe updated its Q4 guidance to $4.10-4.15 EPS and its Q4 2023 guidance to $4.10-$4.15 EPS.

Adobe Stock Down 4.2 %

ADBE stock opened at $528.89 on Friday. The firm has a market cap of $241.07 billion, a PE ratio of 50.47, a P/E/G ratio of 3.32 and a beta of 1.33. The company has a debt-to-equity ratio of 0.24, a quick ratio of 1.16 and a current ratio of 1.16. The firm’s fifty day moving average is $529.21 and its 200 day moving average is $440.68. Adobe has a one year low of $274.73 and a one year high of $570.24.

Insider Activity at Adobe

In related news, CEO Shantanu Narayen sold 35,000 shares of the firm’s stock in a transaction on Thursday, June 22nd. The shares were sold at an average price of $478.03, for a total transaction of $16,731,050.00. Following the sale, the chief executive officer now owns 403,352 shares in the company, valued at $192,814,356.56. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. In other Adobe news, EVP Dana Rao sold 2,600 shares of the stock in a transaction on Friday, June 23rd. The shares were sold at an average price of $480.21, for a total transaction of $1,248,546.00. Following the transaction, the executive vice president now directly owns 17,466 shares of the company’s stock, valued at $8,387,347.86. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO Shantanu Narayen sold 35,000 shares of the firm’s stock in a transaction dated Thursday, June 22nd. The stock was sold at an average price of $478.03, for a total transaction of $16,731,050.00. Following the completion of the transaction, the chief executive officer now directly owns 403,352 shares in the company, valued at $192,814,356.56. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 43,089 shares of company stock worth $20,720,115. 0.24% of the stock is owned by company insiders.

Hedge Funds Weigh In On Adobe

Several hedge funds and other institutional investors have recently modified their holdings of the business. State Street Corp raised its stake in Adobe by 1.5% during the first quarter. State Street Corp now owns 18,632,322 shares of the software company’s stock worth $7,180,322,000 after purchasing an additional 269,173 shares during the period. Morgan Stanley raised its stake in Adobe by 17.7% during the fourth quarter. Morgan Stanley now owns 9,804,275 shares of the software company’s stock worth $3,299,433,000 after purchasing an additional 1,471,861 shares during the period. Norges Bank purchased a new position in Adobe during the fourth quarter worth about $1,757,029,000. Moneta Group Investment Advisors LLC raised its stake in Adobe by 115,991.0% during the fourth quarter. Moneta Group Investment Advisors LLC now owns 3,248,225 shares of the software company’s stock worth $1,093,125,000 after purchasing an additional 3,245,427 shares during the period. Finally, Charles Schwab Investment Management Inc. raised its stake in Adobe by 0.4% during the first quarter. Charles Schwab Investment Management Inc. now owns 2,397,107 shares of the software company’s stock worth $1,092,170,000 after purchasing an additional 10,009 shares during the period. 80.00% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities analysts have commented on ADBE shares. UBS Group upped their target price on shares of Adobe from $525.00 to $600.00 and gave the stock a “neutral” rating in a research note on Wednesday, September 6th. Jefferies Financial Group upped their target price on shares of Adobe from $600.00 to $660.00 and gave the stock a “buy” rating in a research note on Monday, September 11th. Citigroup upped their target price on shares of Adobe from $544.00 to $570.00 and gave the stock a “neutral” rating in a research note on Wednesday. Piper Sandler upped their target price on shares of Adobe from $572.00 to $650.00 and gave the stock an “overweight” rating in a research note on Friday. Finally, Royal Bank of Canada reaffirmed an “outperform” rating and issued a $615.00 price target on shares of Adobe in a research report on Friday. Nine research analysts have rated the stock with a hold rating and twenty have assigned a buy rating to the company’s stock. According to MarketBeat.com, Adobe has an average rating of “Moderate Buy” and an average target price of $573.07.

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.