Is Adobe Inc. (ADBE) a good stock to buy now?

Adobe Inc. (NASDAQ: ADBE) is 60.24% higher on its value in year-to-date trading and has touched a low of $255.13 and a high of $484.65 in the current 52-week trading range. The ADBE stock was last observed hovering at around $484.43 in the last trading session, with the day’s gains setting it 44.06% off its average median price target of $440.00 for the next 12 months. It is also -11.26% off the consensus price target high of $475.00 offered by 27 analysts, but current levels are -40.93% lower than the price target low of $375.00 for the same period.

Currently trading at $528.49, the stock is 16.30% and 18.98% above its SMA20 and SMA50 respectively. However, with a daily trading volume of 7.69 million and changing 9.10% at the moment leaves the stock 44.39% off its SMA200. ADBE registered 82.58% gain for a year compared to 6-month gain of 56.58%. The firm has a 50-day simple moving average (SMA 50) of $449.07 and a 200-day simple moving average (SMA200) of $383.95.

The stock witnessed a 22.26% loss in the last 1 month and extending the period to 3 months gives it a 39.14%, and is 14.39% up over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 3.77% over the week and 2.74% over the month.

Adobe Inc. (ADBE) has around 22634 employees, a market worth around $256.32B and $12.05B in sales. Current P/E ratio is 69.63 and Fwd P/E is 47.55. Profit margin for the company is 30.70%. Distance from 52-week low is 107.14% and 9.05% from its 52-week high. The company has generated returns on investments over the last 12 months (20.60%).

Adobe Inc. (ADBE) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for Adobe Inc. (ADBE) is a “Overweight”. 27 analysts offering their recommendations for the stock have an average rating of 2.00, where 8 rate it as a Hold and 2 think it is a “Overweight”. 16 of the analysts rate the stock as a “Buy”. 1 analysts have rated the stock as a Sell or Underperform.

Adobe Inc. quarterly earnings per share for the current quarter are estimated at $2.41 with sales reaching $3.16B over the same period.The EPS is expected to grow by 7.80% this year, but quarterly earnings will post 14.00% year-over-year. Quarterly sales are estimated to grow 11.30% in year-over-year returns.

Adobe Inc. (ADBE) Top Institutional Holders

2,437 institutions hold shares in Adobe Inc. (ADBE), with 1.41M shares held by insiders accounting for 0.29% while institutional investors hold 89.36% of the company’s shares. The shares outstanding are 481.00M, and float is at 477.00M with Short Float at 0.90%. Institutions hold 89.10% of the Float.

The top institutional shareholder in the company is Vanguard Group, Inc. (The) with over 39.55 million shares valued at $17.21 billion. The investor’s holdings represent 8.24% of the ADBE Shares outstanding. As of Jun 29, 2020, the second largest holder is Blackrock Inc. with 38.07 million shares valued at $16.57 billion to account for 7.94% of the shares outstanding. The other top investors are FMR, LLC which holds 32.78 million shares representing 6.83% and valued at over $14.27 billion, while State Street Corporation holds 4.18% of the shares totaling 20.07 million with a market value of $8.74 billion.

Adobe Inc. (ADBE) Insider Activity

A total of 122 insider transactions have happened at Adobe Inc. (ADBE) in the last six months, with sales accounting for 91 and purchases happening 31 times. The most recent transaction is an insider sale by LAMKIN BRYAN, the company’s EVP, GM, Digital Media. SEC filings show that LAMKIN BRYAN sold 13,095 shares of the company’s common stock on Aug 24 at a price of $477.15 per share for a total of $6.25 million. Following the sale, the insider now owns 73211.0 shares.

Adobe Inc. disclosed in a document filed with the SEC on Aug 17 that Belsky Scott (EVP, Chief Product Officer) sold a total of 600 shares of the company’s common stock. The trade occurred on Aug 17 and was made at $450.31 per share for $0.27 million. Following the transaction, the insider now directly holds 11453.0 shares of the ADBE stock.

Still, SEC filings show that on Aug 12, NARAYEN SHANTANU (Chairman, President and CEO) disposed off 10,000 shares at an average price of $444.96 for $4.45 million. The insider now directly holds 367,945 shares of Adobe Inc. (ADBE).

Adobe Inc. (ADBE): Who are the competitors?

The company’s main competitors (and peers) include salesforce.com inc. (CRM) that is trading 77.33% up over the past 12 months. Nuance Communications Inc. (NUAN) is 106.26% up on the 1-year trading charts. Short interest in the company’s stock has fallen -28.27% from the last report on Jul 14, 2020 to stand at a total of 4.81 million short shares sold with a short interest ratio of 1.65.