ADBE stock: buy or sell?
August 19th, 2019
Adobe Systems Incorporated operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content.
Should I buy ADBE stock?Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best moment to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
None of our preferred buy setups matches with Adobe stock situation right now, therefore this is not a suitable entry point.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Adobe stock a buy?
Banks and financial institutions publish stock ratings everyday.At Stocks2.com, we gathered 15 ratings published for ADBE stock in the last 30 days. The general sentiment of these ratings is bullish for ADBE stock, with 9 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-6-19||Wells Fargo & Co||n/a||Hold|
|2019-6-19||Royal Bank of Canada||n/a||Outperform|
|2019-6-19||JPMorgan Chase & Co.||n/a||Neutral|
|2019-6-19||Credit Suisse Group||Outperform||Positive|
|2019-6-19||BMO Capital Markets||n/a||Outperform|
|2019-6-19||Bank of America||Buy||Buy|
|2019-4-29||Morgan Stanley||Equal Weight||Overweight|
|2019-3-15||Robert W. Baird||n/a||Outperform|
ADBE stock analysis
Adobe shares remained constant 0.18% to $287.97 today.
Adobe closed today at $287.97 and remained steady a tight 0.18%. Since SMA100d and SMA200d crossed up on May, ADBE price slid a -0.44%. ADBE is soaring again after a 5.84% correction from its last top on Aug/9 at $298.27. On Friday ADBE price bounced up over the SMA of 100 days demonstrating to be a significant support for this stock. On July/19, ADBE hit new all time highs, pushing higher previous ATH of $310.96 recorded on Jul 17th. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
Shares of Adobe closed this week at $287.97 and stayed constant a neutral 0.18%. Late July ADBE plunged a bloodcurdling -5.98% in just one week.
Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $313.11 resistance. Not so far away is the last price record Adobe marked by mid July. Late April, SMA20w and SMA40w crossed up triggering a rise of 2.13%. Since late January when ADBE stock price broke up the SMA40w line, it gained $43.02 (17.56%).
ADBE stock price history
ADBE stock went public on August 13th, 1986 with a price of $0.151. Since then, ADBE stock surged a 191,880.00%, with a yearly average of 5,814.50%. If you had invested $1,000 in ADBE stock in 1986, it would worth $1,918,800.00 today.
1: Adjusted price after possible price splits or reverse-splits.
ADBE stock historical price chart
ADBE stock reached all-time highs on July/19 with a price of $313.11.
ADBE stock price target is $308.60How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We have 13 price targets for ADBE stock posted in the last month:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-6-19||Wells Fargo & Co||Reiterates||$250.00||$275.00||10%|
|2019-6-19||Royal Bank of Canada||Reiterates||n/a||$295.00||-|
|2019-6-19||JPMorgan Chase & Co.||Raises Target||$284.00||$329.00||15.8%|
|2019-6-19||Credit Suisse Group||Reiterates||$300.00||$325.00||8.3%|
|2019-6-19||BMO Capital Markets||Raises Target||$300.00||$315.00||5%|
|2019-6-19||Bank of America||Raises Target||$312.00||$323.00||3.5%|
|2019-3-15||Robert W. Baird||Reiterates||$290.00||$300.00||3.4%|
Financials and fundamental analysis
Earnings date and Earnings per ShareOn March, Adobe reported its latest financial data, posting a nice gain for the Earnings per Share (EPS). Experts expected $1.26 per share, but Adobe posted $1.37.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2017, last anual sales report draw an extraordinary increase of 23.67% to $9,030.01 M dollars. In contrary, its profit margin (compared to revenues) escalated to 28.69%, that is $2,590.77 million. Adobe fiscal year ends in November, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Adobe TTM sales up to February 2019 were $9,552.01 and earnings $2,681.94 M dollars. When comparing this TTM figures with the last reported annuality, we can esteem Adobe business evolution since November 2018: Annual revenues up to February, compared to lastest yearly report, jumped a decent 5.78%. Regarding profit margin, Adobe remained constant -0.61% to 28.69%
|2013||$4,020 M||-||$290 M7.2%||-|
|2014||$4,147 M||3.16%||$268 M6.5%||-7.45%|
|2015||$4,796 M||15.64%||$630 M13.1%||134.56%|
|2016||$5,854 M||22.08%||$1,169 M20.0%||85.65%|
|2017||$7,302 M||24.72%||$1,694 M23.2%||44.93%|
|2018||$9,030 M||23.67%||$2,591 M28.7%||52.94%|
|TTM||$9,552 M||5.78%||$2,682 M28.1%||3.52%|
Quarterly financial resultsAdobe posted $2,600.95 M in revenues for 2019-Q1, a 5.53% improvement compared to previous quarter. Reported quarter earnings marked $674.24 M with a profit margin of 25.92%. Profit margin declined a -1.60% compared to previous quarter when profit margin was 27.52%. When comparing sales to same quarter last year, Adobe sales marked an astounding gain and boosted a 25.11%. Looking back to recent quarterly results, Adobe posted 7 negative quarters in a row.
|2017-Q2||$1,760 M||-||$374 M21.3%||-|
|2017-Q3||$1,840 M||4.55%||$420 M22.8%||12.07%|
|2017-Q4||$2,007 M||9.05%||$502 M25.0%||19.54%|
|2018-Q1||$2,079 M||3.61%||$583 M28.0%||16.26%|
|2018-Q2||$2,195 M||5.60%||$663 M30.2%||13.74%|
|2018-Q3||$2,291 M||4.36%||$666 M29.1%||0.47%|
|2018-Q4||$2,465 M||7.57%||$678 M27.5%||1.79%|
|2019-Q1||$2,601 M||5.53%||$674 M25.9%||-0.59%|
Adobe ownershipWhen you are planning to invest in shares of a stock, it's worth to overview its ownership structure.
Adobe shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.28% of all shares.
Bearish positions for ADBE stock account 0.00%, no big difference from last month.
For a better context understanding, the following table shows ownership data compared to other related companies:
|Market cap||$140.5 B||$31.7 B||$111.3 B||$71.1 B||$1,060.2 B|
|Total shares||488.0 M||219.6 M||774.8 M||259.2 M||7,660.0 M|
|Float shares||483.6 M||219.3 M||744.4 M||249.4 M||7,520.0 M|
|- Institutional holdings (%)||88.9%||98.7%||84.8%||90.0%||74.7%|
|- Insider holdings (%)||0.3%||0.2%||4.6%||4.0%||1.4%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Monday, August 19th, 2019|
|Day range||$287.17 - $291.76|
|Average true range||$8.56|
|50d mov avg||$295.95|
|100d mov avg||$285.31|
|200d mov avg||$265.19|
Adobe performanceTo better understand Adobe performance you must compare its gains with other related stocks in same sector or industry. For Adobe, the comparison is made against Autodesk, Salesforce.com, Intuit, Microsoft, Nuance Communications, Oracle, , Symantec and Monotype Imaging.
Adobe competitorsWe selected a few stocks to conform a list of Adobe competitors to watch if you are interested in investing in ADBE:
- Autodesk (ADSK)
- Salesforce.com (CRM)
- Intuit (INTU)
- Microsoft (MSFT)
- Nuance Communications (NUAN)
- Oracle (ORCL)
- Symantec (SYMC)
- Monotype Imaging (TYPE)
Latest ADBE stock news
- Seeking AlphaAdobe Is Pricey But Here's An Option For InvestorsJuly 24, 2019
- Seeking AlphaAdobe: A Picture-Perfect Digital Transformation StockJuly 8, 2019
- InvestorPlaceAdobe Stock Is Teetering on Overvalued, but It Isn’t There YetJuly 5, 2019
- InvestorPlaceBest Stocks for 2019: Adobe Stock Is Up 30% YTD — And Still UndervaluedJuly 2, 2019
- Investors.comDow Jones Futures: Microsoft, Adobe, ServiceNow Lead 5 Software Stocks In Buy ZonesJuly 1, 2019