Zacks Investment Research Upgrades Adobe Systems (ADBE) to Buy
Zacks Investment Research upgraded shares of Adobe Systems (NASDAQ:ADBE) from a hold rating to a buy rating in a report issued on Tuesday morning. They currently have $215.00 price objective on the software company’s stock.
According to Zacks, “Adobe has outperformed the industry it belongs to in the last one year. 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.”
Other research analysts have also issued research reports about the company. Stifel Nicolaus reiterated a buy rating and set a $175.00 price target (up previously from $163.00) on shares of Adobe Systems in a report on Thursday, October 19th. Canaccord Genuity restated a buy rating and issued a $185.00 price objective (up from $170.00) on shares of Adobe Systems in a report on Thursday, October 19th. Bank of America boosted their price objective on shares of Adobe Systems from $184.00 to $213.00 and gave the company a buy rating in a report on Thursday, October 19th. Citigroup boosted their price objective on shares of Adobe Systems from $163.00 to $177.00 and gave the company a buy rating in a report on Thursday, October 19th. Finally, Piper Jaffray Companies restated a buy rating and issued a $195.00 price objective on shares of Adobe Systems in a report on Thursday, October 19th. Eight equities research analysts have rated the stock with a hold rating, twenty-six have issued a buy rating and one has issued a strong buy rating to the stock. The company presently has a consensus rating of Buy and a consensus target price of $198.15.
Adobe Systems (NASDAQ:ADBE) last posted its quarterly earnings results on Thursday, December 14th. The software company reported $1.26 EPS for the quarter, topping the consensus estimate of $1.16 by $0.10. Adobe Systems had a return on equity of 22.15% and a net margin of 23.20%. The business had revenue of $2.01 billion for the quarter, compared to analyst estimates of $1.95 billion. During the same quarter in the previous year, the firm earned $0.90 EPS. The company’s quarterly revenue was up 24.8% compared to the same quarter last year. research analysts expect that Adobe Systems will post 5.12 earnings per share for the current year.
In other Adobe Systems news, CFO Mark Garrett sold 54,488 shares of Adobe Systems stock in a transaction dated Tuesday, February 6th. The stock was sold at an average price of $187.38, for a total value of $10,209,961.44. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Chairman Shantanu Narayen sold 165,023 shares of Adobe Systems stock in a transaction dated Thursday, January 25th. The shares were sold at an average price of $197.89, for a total value of $32,656,401.47. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 351,199 shares of company stock valued at $67,326,422. 0.38% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Cerebellum GP LLC acquired a new position in shares of Adobe Systems during the fourth quarter worth about $118,000. Community Bank N.A. acquired a new position in shares of Adobe Systems during the fourth quarter worth about $122,000. Parkside Financial Bank & Trust grew its position in shares of Adobe Systems by 170.3% during the third quarter. Parkside Financial Bank & Trust now owns 900 shares of the software company’s stock worth $135,000 after buying an additional 567 shares in the last quarter. BB&T Investment Services Inc. grew its position in shares of Adobe Systems by 42.4% during the third quarter. BB&T Investment Services Inc. now owns 923 shares of the software company’s stock worth $138,000 after buying an additional 275 shares in the last quarter. Finally, Exane Derivatives grew its position in shares of Adobe Systems by 55.0% during the third quarter. Exane Derivatives now owns 958 shares of the software company’s stock worth $143,000 after buying an additional 340 shares in the last quarter. 86.76% of the stock is owned by institutional investors.
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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