Lord Abbett & CO. LLC Reduces Stake in Adobe Inc.

Lord Abbett & CO. LLC has announced a reduction in its investment in Adobe Inc. (NASDAQ:ADBE - Free Report), cutting its holdings by 3.2% during the third quarter. As per the latest disclosure with the SEC, the fund now holds 99,439 shares after selling 3,249 shares during this period. This adjustment brings the total value of their Adobe holdings to approximately $51,488,000 based on the most recent SEC filing.

Institutional Investors Adjust Their Positions

In addition to Lord Abbett & CO. LLC, several other institutional investors have recently altered their positions regarding Adobe stocks. For instance, Piscataqua Savings Bank increased its investment in Adobe by an impressive 226.7% during the third quarter, now owning 49 shares worth about $25,000 after purchasing 34 additional shares. Similarly, Legacy Investment Solutions LLC took advantage of the market and bought a new position in Adobe worth around $26,000 in the same quarter.

Groupama Asset Managment saw a significant boost in its holdings with an increase of 28.8%, now owning 51,482 shares valued at $27,000 after acquiring an additional 11,522 shares. MidAtlantic Capital Management Inc. also made a mark by purchasing a new stake in Adobe worth about $30,000 during this period. True Wealth Design LLC rounded out the list by significantly increasing their holdings by 141.7%, now owning 58 shares valued at around $30,000 after buying an additional 34 shares. Overall, institutional investors retain a strong presence, owning 81.79% of the company’s stock.

Insider Transactions Reflect Market Confidence

In recent news concerning insider transactions, EVP Scott Belsky sold 481 shares of Adobe on October 25th at an average price of $483.42, resulting in a total sale of $232,525.02. After this sale, he still holds 18,128 shares valued at approximately $8,763,437.76, which reflects a 2.58% decrease in his position. Similarly, Director Amy Banse sold 606 shares on December 6th at an average price of $550.00, totaling $333,300.00. Post-transaction, she currently owns 32,929 shares valued around $18,110,950, marking a 1.81% decrease in her holdings. In the last quarter alone, company insiders sold a total of 34,793 shares valued at $18,069,669, with only 0.15% of the stock owned by corporate insiders.

Analyst Ratings Overview

Various research firms have recently updated their ratings for Adobe’s stock. Piper Sandler revised its price target from $635.00 to $600.00 and maintained an "overweight" rating. Stifel Nicolaus also lowered its target price for Adobe from $650.00 to $600.00 while designating a "buy" rating. JMP Securities continues to support the stock with a "market perform" rating. Jefferies Financial Group adjusted its price target from $700.00 to $650.00, reiterating a "buy" rating. Finally, Royal Bank of Canada lowered its price objective from $610.00 to $590.00 and rates the stock as "outperform." Currently, the consensus rating is "Moderate Buy" with an average target price of $584.88, a reflection of varied analyst opinions with two equitable research analysts issuing a sell rating, eight rating it as hold, 18 as buy, and one as strong buy.

Current Market Status

On the trading front, Adobe shares opened at $465.69. The company has experienced a 1-year low of $433.97 and a high of $638.25. The stock's fifty-day simple moving average stands at $505.16, while its 200-day average is at $523.26. Adobe holds a market cap of $205.00 billion with a price-to-earnings ratio of 37.56, a PEG ratio of 2.51, and a beta of 1.29. The firm boasts a current ratio and quick ratio of 1.11, and a debt-to-equity ratio of 0.28.

Adobe's latest quarterly earnings report, released on December 11th, highlighted its strong performance with earnings per share (EPS) of $4.81, exceeding the consensus estimate by $0.14. The company showed a robust net margin of 25.85% with a return on equity of 45.22%. The revenue for this quarter amounted to $5.61 billion, again beating estimates. Compared to the same quarter last year, Adobe's revenue increased by 11.1%. Analysts predict that for the current year, Adobe will post an EPS of 16.73.

Company Overview

Adobe Inc., through its subsidiaries, operates as a diversified software company globally. It functions across three primary segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment encompasses various products, services, and solutions meant for individuals, teams, and enterprises to create, publish, and promote content. This segment also includes Document Cloud, a unified cloud-based document services platform.

Adobe, Investors, Earnings