Adobe Target of Unusually Large Options Trading (NASDAQ:ADBE)

Adobe Inc. (NASDAQ:ADBE) was the target of unusually large options trading on Wednesday. Stock traders bought 29,648 call options on the stock. This represents an increase of approximately 14% compared to the typical volume of 26,034 call options.

Adobe Stock Performance

Adobe stock traded up $19.21 during midday trading on Wednesday, reaching $535.47. 1,953,760 shares of the stock traded hands, compared to its average volume of 3,120,188. Adobe has a fifty-two week low of $433.97 and a fifty-two week high of $638.25. The firm has a market cap of $235.71 billion, a price-to-earnings ratio of 43.60, a PEG ratio of 2.35 and a beta of 1.29. The firm has a fifty day moving average price of $502.62 and a two-hundred day moving average price of $520.96. The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 0.28.

Adobe (NASDAQ:ADBE) last issued its quarterly earnings results on Thursday, September 12th. The software company reported $4.65 earnings per share for the quarter, topping analysts’ consensus estimates of $4.53 by $0.12. Adobe had a net margin of 25.59% and a return on equity of 42.82%. The company had revenue of $5.41 billion during the quarter, compared to analyst estimates of $5.37 billion. During the same period in the prior year, the business posted $3.26 EPS. The business’s revenue for the quarter was up 10.6% compared to the same quarter last year. On average, equities research analysts forecast that Adobe will post 14.82 earnings per share for the current year.

Insider Transactions at Adobe

In other Adobe news, CFO Daniel Durn sold 6,500 shares of the stock in a transaction on Tuesday, September 17th. The stock was sold at an average price of $515.44, for a total value of $3,350,360.00. Following the completion of the transaction, the chief financial officer now owns 20,838 shares in the company, valued at approximately $10,740,738.72. This represents a 23.78 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Shantanu Narayen sold 25,000 shares of the business’s stock in a transaction that occurred on Wednesday, September 25th. The stock was sold at an average price of $521.58, for a total value of $13,039,500.00. Following the sale, the chief executive officer now directly owns 357,700 shares in the company, valued at $186,569,166. This trade represents a 6.53 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 34,187 shares of company stock worth $17,736,369 over the last 90 days. 0.15% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Adobe

Several large investors have recently made changes to their positions in ADBE. Guinness Asset Management LTD raised its position in shares of Adobe by 3.8% during the second quarter. Guinness Asset Management LTD now owns 50,924 shares of the software company’s stock worth $28,281,000 after purchasing an additional 1,864 shares during the period. Warther Private Wealth LLC acquired a new position in shares of Adobe in the second quarter worth about $469,000. Cherrydale Wealth Management LLC acquired a new position in shares of Adobe in the second quarter worth about $210,000. Prentice Wealth Management LLC increased its position in shares of Adobe by 2.1% in the second quarter. Prentice Wealth Management LLC now owns 1,477 shares of the software company’s stock worth $821,000 after acquiring an additional 31 shares in the last quarter. Finally, Jamison Private Wealth Management Inc. raised its holdings in shares of Adobe by 7.7% during the second quarter. Jamison Private Wealth Management Inc. now owns 1,122 shares of the software company’s stock valued at $623,000 after acquiring an additional 80 shares during the period. Institutional investors own 81.79% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on ADBE shares. UBS Group decreased their price objective on shares of Adobe from $560.00 to $550.00 and set a “neutral” rating on the stock in a research report on Friday, September 13th. StockNews.com raised Adobe from a “hold” rating to a “buy” rating in a research report on Friday, September 13th. Piper Sandler reiterated an “overweight” rating and set a $635.00 price objective on shares of Adobe in a research report on Friday, September 13th. Barclays upped their target price on shares of Adobe from $650.00 to $675.00 and gave the company an “overweight” rating in a report on Wednesday, September 4th. Finally, Bank of America reissued a “buy” rating and set a $640.00 price objective on shares of Adobe in a research note on Friday, September 13th. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating, eighteen have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $606.40.

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.