EdgeRock Capital LLC Makes New Investment in Adobe Inc. (NASDAQ:ADBE)

EdgeRock Capital LLC bought a new position in shares of Adobe Inc. (NASDAQ:ADBE) during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor bought 429 shares of the software company’s stock, valued at approximately $272,000.

A number of other hedge funds also recently added to or reduced their stakes in ADBE. HBC Financial Services PLLC acquired a new stake in Adobe during the 3rd quarter worth approximately $25,000. Wetzel Investment Advisors Inc. acquired a new stake in Adobe during the 4th quarter worth approximately $35,000. BluePath Capital Management LLC acquired a new stake in shares of Adobe in the 3rd quarter valued at $39,000. Hanseatic Management Services Inc. acquired a new stake in shares of Adobe in the 3rd quarter valued at $45,000. Finally, First Command Advisory Services Inc. acquired a new stake in shares of Adobe in the 3rd quarter valued at $52,000. 81.79% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In related news, insider Anil Chakravarthy sold 100 shares of the firm’s stock in a transaction that occurred on Monday, April 22nd. The shares were sold at an average price of $471.00, for a total value of $47,100.00. Following the sale, the insider now directly owns 33,609 shares of the company’s stock, valued at $15,829,839. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. In related news, insider Anil Chakravarthy sold 100 shares of the stock in a transaction on Monday, April 22nd. The stock was sold at an average price of $471.00, for a total value of $47,100.00. Following the transaction, the insider now directly owns 33,609 shares of the company’s stock, valued at approximately $15,829,839. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Scott Belsky sold 2,713 shares of Adobe stock in a transaction on Thursday, May 2nd. The shares were sold at an average price of $474.30, for a total value of $1,286,775.90. Following the completion of the transaction, the executive vice president now owns 21,114 shares in the company, valued at approximately $10,014,370.20. The disclosure for this sale can be found here. Insiders sold a total of 3,006 shares of company stock valued at $1,424,432 in the last 90 days. 0.15% of the stock is currently owned by insiders.

Adobe Price Performance

ADBE traded down $1.32 during midday trading on Tuesday, reaching $492.27. 2,517,845 shares of the company’s stock were exchanged, compared to its average volume of 3,431,529. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.05 and a quick ratio of 1.05. The stock has a market capitalization of $220.54 billion, a PE ratio of 47.06, a P/E/G ratio of 2.63 and a beta of 1.28. The business’s 50-day moving average price is $505.80 and its 200 day moving average price is $561.00. Adobe Inc. has a 1-year low of $331.89 and a 1-year high of $638.25.

Adobe (NASDAQ:ADBE) last announced its earnings results on Thursday, March 14th. The software company reported $4.48 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.38 by $0.10. Adobe had a net margin of 24.08% and a return on equity of 39.12%. The company had revenue of $5.18 billion during the quarter, compared to analysts’ expectations of $5.14 billion. During the same quarter in the previous year, the business posted $2.97 earnings per share. The firm’s quarterly revenue was up 11.3% compared to the same quarter last year. As a group, equities analysts anticipate that Adobe Inc. will post 14.55 EPS for the current fiscal year.

Adobe announced that its board has initiated a share buyback program on Thursday, March 14th that allows the company to buyback $25.00 billion in shares. This buyback authorization allows the software company to buy up to 10.8% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s board believes its shares are undervalued.

Wall Street Analyst Weigh In

ADBE has been the topic of a number of analyst reports. Mizuho restated a “buy” rating and issued a $680.00 price objective on shares of Adobe in a report on Wednesday, March 27th. Bank of America reduced their price objective on shares of Adobe from $700.00 to $640.00 and set a “buy” rating on the stock in a report on Friday, March 15th. TD Cowen reduced their price objective on shares of Adobe from $650.00 to $640.00 and set an “outperform” rating on the stock in a report on Friday, March 15th. Oppenheimer reaffirmed an “outperform” rating and issued a $660.00 target price on shares of Adobe in a research report on Wednesday, March 27th. Finally, BMO Capital Markets reaffirmed an “outperform” rating and issued a $610.00 target price on shares of Adobe in a research report on Wednesday, March 27th. Two investment analysts have rated the stock with a sell rating, six have issued a hold rating and twenty have given a buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $620.72.

About Adobe

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.