Adobe’s stock price target has been revised downward by Citigroup, now set at $366.00, down from $400.00. This adjustment, detailed in a report released on Thursday, reflects Citigroup’s current rating of “neutral” for the software company, which trades on the Nasdaq under the symbol ADBE.
Several other financial institutions have recently assessed Adobe’s stock, contributing to a mixed outlook. Melius downgraded Adobe from a “hold” rating to a “sell” rating, establishing a price target of $310.00 in a report dated August 11, 2023. In contrast, DA Davidson reaffirmed a “buy” rating with a more optimistic price target of $500.00 on November 20, 2023. UBS Group also adjusted its price target, reducing it from $400.00 to $375.00 and maintaining a “neutral” rating in a report dated September 12, 2023. Additionally, Wells Fargo lowered its target from $470.00 to $420.00 while retaining an “overweight” rating, also on November 20, 2023.
Analysts have varied opinions on Adobe’s stock performance. One analyst has issued a “Strong Buy” rating, while fourteen have rated it as a “Buy,” eleven as a “Hold,” and three as a “Sell.” According to data from MarketBeat, Adobe holds an average rating of “Hold” with an average price target of $425.85.
Latest Earnings Report
Adobe recently released its quarterly earnings data on September 11, 2023. The company reported an earnings per share (EPS) of $5.31, surpassing analysts’ expectations of $5.18 by $0.13. Revenue for the quarter reached $5.99 billion, slightly exceeding estimates of $5.91 billion. This performance marked a year-over-year revenue growth of 10.7%, with the previous year’s EPS recorded at $4.65.
For the fiscal year 2025, Adobe has projected an EPS guidance range of $20.800 to $20.850, with a Q4 2025 guidance of $5.350 to $5.400. Sell-side analysts anticipate an average EPS of 16.65 for the current year.
Insider Transactions and Institutional Holdings
In other news, Chief Accounting Officer Jillian Forusz sold 149 shares of Adobe on October 31, 2023, at an average price of $337.88, totaling approximately $50,344.12. Following this transaction, Forusz holds 3,426 shares valued at around $1,157,576.88, representing a 4.17% decrease in her ownership of the stock. This sale was disclosed in a filing with the Securities and Exchange Commission.
Institutional investors hold a significant portion of Adobe’s stock, with approximately 81.79% owned by hedge funds and other institutional entities. Recent changes include Brighton Jones LLC increasing its stake by 2.1% during the fourth quarter, now owning 8,068 shares valued at $3,588,000. Wealthspire Advisors LLC also grew its stake by 1.9% in the first quarter, now holding 3,879 shares worth $1,488,000. Other notable increases include Nicholas Hoffman & Company LLC and Charles Schwab Investment Management Inc., both raising their stakes in the company.
Adobe Inc., headquartered in San Jose, California, operates globally as a diversified software company. It functions through three primary segments: Digital Media, Digital Experience, and Publishing and Advertising, offering a variety of products and services that enable content creation, publishing, and promotion.
