Adobe Inc. (NASDAQ: ADBE) stock jumped 7.19% on Thursday to $392.06 against a previous-day closing price of $365.76. With 6.95 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.05 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $397.65 whereas the lowest price it dropped to was $374.09. The 52-week range on ADBE shows that it touched its highest point at $451.15 and its lowest point at $274.73 during that stretch. It currently has a 1-year price target of $398.60. Beta for the stock currently stands at 1.30.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ADBE was up-trending over the past week, with a rise of 8.78%, but this was up by 7.99% over a month. Three-month performance surged to 22.31% while six-month performance rose 18.49%. The stock lost -1.59% in the past year, while it has gained 16.50% so far this year. A look at the trailing 12-month EPS for ADBE yields 10.14 with Next year EPS estimates of 17.61. For the next quarter, that number is 3.79. This implies an EPS growth rate of 0.70% for this year and 13.59% for next year. EPS is expected to grow by 13.98% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 24.50%.
Float and Shares Shorts:
At present, 459.00 million ADBE shares are outstanding with a float of 457.38 million shares on hand for trading. On Apr 27, 2023, short shares totaled 5.54 million, which was 1.21% higher than short shares on Mar 30, 2023. In addition to Mr. Shantanu Narayen as the firm’s Chairman & CEO, Dr. John E. Warnock serves as its Co-Founder & Independent Director.
Institutional Ownership:
Through their ownership of 85.70% of ADBE’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 47.58% of ADBE, in contrast to 36.42% held by mutual funds. Shares owned by individuals account for 0.65%. As the largest shareholder in ADBE with 8.12% of the stake, The Vanguard Group, Inc. holds 37,261,050 shares worth 37,261,050. A second-largest stockholder of ADBE, BlackRock Fund Advisors, holds 22,916,167 shares, controlling over 5.00% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in ADBE, holding 18,632,322 shares or 4.06% stake. With a 3.10% stake in ADBE, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 14,224,244 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.34% of ADBE stock, is the second-largest Mutual Fund holder. It holds 10,745,547 shares valued at 4.06 billion. Invesco QQQ Trust holds 1.32% of the stake in ADBE, owning 6,069,650 shares worth 2.29 billion.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 02, 2023, ADBE reported revenue of $4.39B and operating income of $1.53B. The EBITDA in the recently reported quarter was $1.74B and diluted EPS was $2.49.
Analysts Ratings:
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ADBE since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With ADBE analysts setting a high price target of $480.00 and a low target of $321.00, the average target price over the next 12 months is $397.66. Based on these targets, ADBE could surge 22.43% to reach the target high and fall by -18.12% to reach the target low. Reaching the average price target will result in a growth of 1.43% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded ADBE stock several times over the past three months with 12 Buys and 15 Sells. In these transactions, 10,249 shares were bought while 9,797 shares were sold. The number of buy transactions has increased to 99 while that of sell transactions has risen to 125 over the past year. The total number of shares bought during that period was 179,271 while 148,560 shares were sold.
