The stock of Adobe Inc (NASDAQ: ADBE) has decreased by -0.91 when compared to last closing price of 552.96.Despite this, the company has seen a gain of 6.15% in its stock price over the last five trading days. zacks.com reported 2024-12-09 that ADBE’s fourth-quarter fiscal 2024 results are likely to reflect strong demand for Generative AI solutions amid growing competition and stretched valuation.
Is It Worth Investing in Adobe Inc (NASDAQ: ADBE) Right Now?
The price-to-earnings ratio for Adobe Inc (NASDAQ: ADBE) is 46.28x, which is above its average ratio. Moreover, the 36-month beta value for ADBE is 1.29. Analysts have varying opinions on the stock, with 20 analysts rating it as a “buy,” 9 as “overweight,” 7 as “hold,” and 1 as “sell.”
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The public float for ADBE is 438.40M and currently, short sellers hold a 1.51% of that float. On December 10, 2024, ADBE’s average trading volume was 2.99M shares.
ADBE’s Market Performance
The stock of Adobe Inc (ADBE) has seen a 6.15% increase in the past week, with a 9.38% rise in the past month, and a -4.62% fall in the past quarter. The volatility ratio for the week is 2.53%, and the volatility levels for the past 30 days are at 2.56% for ADBE. The simple moving average for the past 20 days is 5.44% for ADBE’s stock, with a 6.13% simple moving average for the past 200 days.
Analysts’ Opinion of ADBE
Many brokerage firms have already submitted their reports for ADBE stocks, with BMO Capital Markets repeating the rating for ADBE by listing it as a “Outperform.” The predicted price for ADBE in the upcoming period, according to BMO Capital Markets is $600 based on the research report published on December 06, 2024 of the current year 2024.
Oppenheimer, on the other hand, stated in their research note that they expect to see ADBE reach a price target of $625, previously predicting the price at $580. The rating they have provided for ADBE stocks is “Outperform” according to the report published on September 04th, 2024.
JP Morgan gave a rating of “Overweight” to ADBE, setting the target price at $580 in the report published on June 14th of the current year.
ADBE Trading at 8.53% from the 50-Day Moving Average
After a stumble in the market that brought ADBE to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -14.15% of loss for the given period.
Volatility was left at 2.56%, however, over the last 30 days, the volatility rate increased by 2.53%, as shares surge +10.76% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +6.30% upper at present.
During the last 5 trading sessions, ADBE rose by +6.15%, which changed the moving average for the period of 200-days by -1.00% in comparison to the 20-day moving average, which settled at $519.68. In addition, Adobe Inc saw -8.16% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at ADBE starting from AMY BANSE, who proposed sale 606 shares at the price of $538.22 back on Dec 06 ’24. After this action, AMY BANSE now owns shares of Adobe Inc, valued at $326,161 using the latest closing price.
Rao Dana, the Officer of Adobe Inc, proposed sale 8,671 shares at $522.05 during a trade that took place back on Nov 26 ’24, which means that Rao Dana is holding shares at $4,526,692 based on the most recent closing price.
Stock Fundamentals for ADBE
Current profitability levels for the company are sitting at:
- 0.36 for the present operating margin
- 0.88 for the gross margin
The net margin for Adobe Inc stands at 0.26. The total capital return value is set at 0.37. Equity return is now at value 35.36, with 18.19 for asset returns.
Based on Adobe Inc (ADBE), the company’s capital structure generated 0.28 points at debt to capital in total, while cash flow to debt ratio is standing at 1.2. The debt to equity ratio resting at 0.39. The interest coverage ratio of the stock is 51.2.
Currently, EBITDA for the company is 6.65 billion with net debt to EBITDA at -0.13. When we switch over and look at the enterprise to sales, we see a ratio of 11.46. The receivables turnover for the company is 11.62for trailing twelve months and the total asset turnover is 0.7. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.11.
Conclusion
To wrap up, the performance of Adobe Inc (ADBE) has been mixed in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
