Charles Schwab Investment Management Inc. Increases Its Stake in Adobe Inc.

Charles Schwab Investment Management Inc. has recently increased its ownership in Adobe Inc. (NASDAQ:ADBE) by 3.4% during the fourth quarter, as revealed in its latest Form 13F filing with the Securities and Exchange Commission (SEC). After adding 92,458 shares in the quarter, the institutional investor now holds a total of 2,808,909 shares of the software company. This ownership represents approximately 0.65% of Adobe's total shares, valued at around $1,249,066,000 according to the most recent filing.

Other Institutional Investors' Activities

Several other institutional investors have also made adjustments to their positions in Adobe. For instance, Legacy Investment Solutions LLC entered a new investment during the third quarter worth about $26,000. In contrast, Groupama Asset Management enhanced its holdings in Adobe by 28.8% during the same quarter, now owning 51,482 shares valued at $27,000 after acquiring an additional 11,522 shares. MidAtlantic Capital Management Inc. similarly invested in Adobe with a new position valued at approximately $30,000 in the third quarter. Meanwhile, True Wealth Design LLC increased its stake in Adobe by a significant 141.7%, now holding 58 shares worth $30,000 after acquiring an additional 34 shares in the period. Decker Retirement Planning Inc. also established a new position worth about $31,000 in the fourth quarter. Currently, institutional investors collectively own 81.79% of Adobe's stock.

Recent Insider Transactions

In related news, some insider transactions have occurred at Adobe recently. For example, Chief Accounting Officer Jillian Forusz sold 334 shares on January 28th, resulting in a total transaction value of $145,567.22, as shares were sold at an average price of $435.83. Following this transaction, Forusz holds 2,685 shares of Adobe, estimated at roughly $1,170,203.55, marking an 11.06% decrease in her shareholding. Additionally, EVP Scott Belsky sold 3,819 shares on January 27th at an average price of $430.24, bringing the total transaction value to approximately $1,643,086.56. Belsky now owns 18,334 shares worth about $7,888,020.16, reflecting a 17.24% decrease in his position. Over the past ninety days, insiders have sold 5,681 shares of Adobe stock, totaling $2,525,126, with insiders currently holding 0.15% of the company’s shares.

Adobe's Stock Performance

The stock for Adobe opened at $440.72 on Tuesday, with a market capitalization of $191.85 billion. The company reports a PE ratio of 35.54 and a P/E/G ratio of 2.15, along with a beta of 1.31. Adobe has maintained a current and quick ratio of 1.07, with a debt-to-equity ratio of 0.29. Over the past year, Adobe's stock reached a low of $403.75 and a high of $587.75. Currently, its fifty-day simple moving average stands at $439.59, while the 200-day simple moving average is $489.79.

Quarterly Earnings Results

Adobe recently released its quarterly earnings results on December 11th, reporting earnings per share of $4.81 for the quarter, which exceeded analysts’ expectations of $4.67 by $0.14. The company generated revenue of $5.61 billion, surpassing anticipated revenue of $5.54 billion. Adobe showcased a return on equity of 45.87% and a net margin of 25.85%, reflecting an 11.1% increase in revenue compared to the same quarter in the previous year. Last year during this timeframe, Adobe reported an EPS of $3.52. Analysts project that Adobe will achieve earnings per share of 16.65 for the ongoing year.

Analyst Ratings and Price Targets

Adobe's stock has also been a point of interest for various research analysts. Deutsche Bank Aktiengesellschaft recently maintained a "hold" rating but adjusted its target price from $600.00 to $475.00. Redburn Atlantic initiated coverage with a "neutral" rating, while JMP Securities reaffirmed a "market perform" rating. UBS Group lowered its target price on Adobe from $525.00 to $475.00, setting a "neutral" rating, whereas Bank of America adjusted its price target down from $640.00 to $605.00, maintaining a "buy" rating. Overall, one analyst has issued a sell rating, eleven have assigned hold ratings, seventeen have set buy ratings, and one has given a strong buy rating to Adobe. As per data from MarketBeat, Adobe currently holds a consensus rating of "Moderate Buy" and a consensus price target of $570.88.

Adobe's Corporate Overview

Adobe Inc., including its subsidiaries, functions as a diversified software company globally. The company operates through three main segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment provides various products and services that enable individuals, teams, and enterprises to create, publish, and promote content effectively, alongside the Document Cloud, a comprehensive cloud-based platform for document services.

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