Adobe Inc. [NASDAQ: ADBE] gained 0.70% or 4.03 points to close at $578.26 with a heavy trading volume of 1813871 shares. The company report on June 18, 2021 that Adobe Reports Outstanding Second Quarter Results.
Revenue Growth of 23% Year Over Year Drives Record $1.99 Billion Cash Flows from Operations.
Adobe (Nasdaq:ADBE) reported financial results for its second quarter fiscal year 2021 ended June 4, 2021.
It opened the trading session at $575.90, the shares rose to $580.966 and dropped to $574.96, the range by which the price of stock traded the whole day. The daily chart for ADBE points out that the company has recorded 14.70% gains over the past six months. However, it is still -38.99% lower than its most recent low trading price.
If we look at the average trading volume of 2.28M shares, ADBE reached to a volume of 1813871 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Adobe Inc. [ADBE]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ADBE shares is $575.53 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ADBE stock is a recommendation set at 1.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
RBC Capital Mkts have made an estimate for Adobe Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on June 18, 2021. While these analysts kept the previous recommendation, Oppenheimer raised their target price from $550 to $600. The new note on the price target was released on June 18, 2021, representing the official price target for Adobe Inc. stock. Previously, the target price had yet another raise from $575 to $610, while Morgan Stanley kept a Overweight rating on ADBE stock. On June 18, 2021, analysts increased their price target for ADBE shares from 600 to 640.
The Average True Range (ATR) for Adobe Inc. is set at 11.54, with the Price to Sales ratio for ADBE stock in the period of the last 12 months amounting to 18.73. The Price to Book ratio for the last quarter was 20.45, with the Price to Cash per share for the same quarter was set at 10.65. Price to Free Cash Flow for ADBE in the course of the last twelve months was 50.76 with Quick ratio for the last quarter at 1.30.
Trading performance analysis for ADBE stock
Adobe Inc. [ADBE] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 4.88. With this latest performance, ADBE shares gained by 14.49% in over the last four-week period, additionally plugging by 14.70% over the last 6 months – not to mention a rise of 33.96% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ADBE stock in for the last two-week period is set at 75.84, with the RSI for the last a single of trading hit 80.26, and the three-weeks RSI is set at 71.83 for Adobe Inc. [ADBE]. The present Moving Average for the last 50 days of trading for this stock 512.69, while it was recorded at 572.23 for the last single week of trading, and 486.19 for the last 200 days.
Adobe Inc. [ADBE]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Adobe Inc. [ADBE] shares currently have an operating margin of +32.91 and a Gross Margin at +85.36. Adobe Inc.’s Net Margin is presently recorded at +40.89.
Return on Total Capital for ADBE is now 25.94, given the latest momentum, and Return on Invested Capital for the company is 35.78. Return on Equity for this stock inclined to 44.21, with Return on Assets sitting at 23.12. When it comes to the capital structure of this company, Adobe Inc. [ADBE] has a Total Debt to Total Equity ratio set at 35.49. Additionally, ADBE Total Debt to Total Capital is recorded at 26.20, with Total Debt to Total Assets ending up at 19.39. Long-Term Debt to Equity for the company is recorded at 34.80, with the Long-Term Debt to Total Capital now at 25.68.
Reflecting on the efficiency of the workforce at the company, Adobe Inc. [ADBE] managed to generate an average of $233,612 per employee. Receivables Turnover for the company is 8.77 with a Total Asset Turnover recorded at a value of 0.57.Adobe Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.30.
Adobe Inc. [ADBE]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Adobe Inc. posted 2.57/share EPS, while the average EPS was predicted by analysts to be reported at 2.41/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 6.60%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ADBE. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Adobe Inc. go to 18.47%.
An analysis of insider ownership at Adobe Inc. [ADBE]
There are presently around $229,682 million, or 85.30% of ADBE stock, in the hands of institutional investors. The top three institutional holders of ADBE stocks are: VANGUARD GROUP INC with ownership of 38,181,630, which is approximately -0.268% of the company’s market cap and around 0.10% of the total institutional ownership; BLACKROCK INC., holding 37,679,732 shares of the stock with an approximate value of $21.79 billion in ADBE stocks shares; and FMR LLC, currently with $13.53 billion in ADBE stock with ownership of nearly -11.666% of the company’s market capitalization.
Positions in Adobe Inc. stocks held by institutional investors increased at the end of June and at the time of the June reporting period, where 1,102 institutional holders increased their position in Adobe Inc. [NASDAQ:ADBE] by around 21,010,282 shares. Additionally, 948 investors decreased positions by around 22,073,531 shares, while 259 investors held positions by with 354,111,332 shares. The mentioned changes placed institutional holdings at 397,195,145 shares, according to the latest SEC report filing. ADBE stock had 146 new institutional investments in for a total of 2,559,329 shares, while 156 institutional investors sold positions of 2,238,130 shares during the same period.