Bank of America Reiterates “Underperform” Rating for Adobe (NASDAQ:ADBE)

Adobe (NASDAQ:ADBE)‘s stock had its “underperform” rating reissued by equities research analysts at Bank of America in a research note issued on Tuesday,Benzinga reports. They presently have a $190.00 price target on the software company’s stock. Bank of America‘s price target would suggest a potential downside of 12.87% from the stock’s previous close.

ADBE has been the topic of a number of other reports. Freedom Capital lowered shares of Adobe from a “strong-buy” rating to a “hold” rating in a research report on Friday, June 12th. Jefferies Financial Group reduced their price objective on shares of Adobe from $290.00 to $230.00 and set a “hold” rating for the company in a research report on Friday, June 12th. KeyCorp lowered their price objective on Adobe from $235.00 to $195.00 and set an “underweight” rating on the stock in a report on Friday, June 12th. Morgan Stanley dropped their target price on Adobe from $425.00 to $365.00 and set an “equal weight” rating on the stock in a research report on Friday, March 13th. Finally, Stifel Nicolaus reissued a “hold” rating and issued a $200.00 price target (down from $350.00) on shares of Adobe in a report on Friday, June 12th. Six analysts have rated the stock with a Buy rating, twenty-two have issued a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat.com, Adobe presently has an average rating of “Hold” and a consensus price target of $275.00.

Adobe Stock Performance

NASDAQ ADBE opened at $218.07 on Tuesday. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 0.42. Adobe has a 52-week low of $190.12 and a 52-week high of $386.60. The business’s 50-day moving average price is $232.91 and its 200 day moving average price is $264.53. The firm has a market cap of $86.68 billion, a P/E ratio of 12.48, a P/E/G ratio of 0.77 and a beta of 1.43.

Adobe (NASDAQ:ADBE) last posted its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, beating the consensus estimate of $5.82 by $0.14. Adobe had a return on equity of 65.11% and a net margin of 28.69%.The firm had revenue of $6.62 billion during the quarter, compared to the consensus estimate of $6.45 billion. During the same period in the prior year, the business earned $5.06 EPS. The firm’s revenue was up 12.7% compared to the same quarter last year. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. On average, equities research analysts expect that Adobe will post 19.8 earnings per share for the current year.

Adobe announced that its Board of Directors has approved a share buyback plan on Tuesday, April 21st that allows the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization allows the software company to repurchase up to 24.9% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s management believes its shares are undervalued.

Insider Buying and Selling at Adobe

In other Adobe news, CAO Jillian Forusz sold 755 shares of the firm’s stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $246.25, for a total transaction of $185,918.75. Following the completion of the transaction, the chief accounting officer directly owned 3,521 shares in the company, valued at approximately $867,046.25. This trade represents a 17.66% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director David A. Ricks purchased 10,000 shares of Adobe stock in a transaction on Thursday, June 25th. The stock was acquired at an average cost of $194.51 per share, for a total transaction of $1,945,100.00. Following the acquisition, the director directly owned 17,655 shares of the company’s stock, valued at approximately $3,434,074.05. This represents a 130.63% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders have sold 77,091 shares of company stock valued at $18,782,773. Insiders own 0.20% of the company’s stock.

Institutional Investors Weigh In On Adobe

A number of large investors have recently bought and sold shares of ADBE. Measured Wealth Private Client Group LLC acquired a new position in shares of Adobe in the third quarter worth $26,000. Western Pacific Wealth Management LP acquired a new stake in shares of Adobe during the fourth quarter valued at $26,000. Beacon Financial Strategies CORP purchased a new stake in Adobe during the 4th quarter worth about $28,000. TrustBank acquired a new position in Adobe in the 4th quarter valued at about $28,000. Finally, KERR FINANCIAL PLANNING Corp purchased a new position in Adobe in the 3rd quarter valued at about $27,000. Institutional investors and hedge funds own 81.79% of the company’s stock.

Adobe Company Profile

Adobe Inc, founded in 1982 by John Warnock and Charles Geschke and headquartered in San Jose, California, is a global software company that develops tools and services for creative professionals, marketers and enterprises. Under the leadership of CEO Shantanu Narayen, who has led the company since 2007, Adobe has evolved from a provider of desktop publishing tools into a cloud-centric provider of digital media and digital experience solutions.

The company’s core offerings are organized around digital media and digital experience.