ADBE stock: buy or sell?
December 6th, 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?You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to choose your own trading strategy that fits your character as inversor. 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, hence 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?
Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness.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 8 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-9-18||Royal Bank of Canada||n/a||Outperform|
|2019-9-18||JPMorgan Chase & Co.||n/a||Neutral|
|2019-9-18||BMO Capital Markets||Positive||Outperform|
|2019-9-13||Royal Bank of Canada||n/a||Outperform|
|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|
ADBE stock analysis
Adobe closed on December/6 at $306.23 and gained a decent 1.06%.
Adobe shares gained 1.06% to $306.23 on December 6th. In the last 39 days when ADBE stock price broke up the SMA200d line, it gained $34.78 (12.81%). ADBE shows a short term strength with several rising tops and rising bottoms. In the very short term, on Tuesday it marked a new bottom at $297.32 that should act a support if Adobe starts a trading flat base in the range of $297.32 - $310.00 If Adobe breakouts over $310.00 with average or higher volume, this would be a signal that the uptrend resumes. On July, ADBE hit new all time highs, pushing higher previous ATH of $310.96 recorded on July. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
After climbing for 4 weeks, this week Adobe decreased a bad -1.07%, closing at $306.23. Early November ADBE climbed a cool 5.01% in just one week.
Since early November when ADBE stock price broke up the SMA40w line, it gained $28.41 (10.23%). Far behind is the all-time high Adobe hit by mid July but price is just -2.20% below that top. Since SMA20d and SMA40w crossed up late April, ADBE price climbed $24.27 per share (8.61%).
ADBE stock price history
ADBE stock went public on August 13th, 1986 with a price of $0.001. Since then, ADBE stock grew a inf%, with an average of inf% per year. If you had invested right after ADBE's IPO a $1,000 in ADBE stock in 1986, it would worth $inf today.
1: Adjusted price after possible price splits or reverse-splits.
ADBE stock historical price chart
ADBE stock reached all-time highs on July with a price of $313.11.
ADBE stock price target is $305.10Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. 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. For the last 30 days we found 12 price predictions for ADBE stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-9-18||Royal Bank of Canada||Lowers Target||$320.00||$315.00||-1.6%|
|2019-9-18||JPMorgan Chase & Co.||Lowers Target||$329.00||$318.00||-3.3%|
|2019-9-18||Griffin Securities||Raises Target||$303.00||$317.00||4.6%|
|2019-9-18||BMO Capital Markets||Reiterates||$315.00||$310.00||-1.6%|
|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%|
Financials and fundamental analysis
Earnings date and Earnings per ShareOn March, Adobe reported its latest financial data, posting a beatiful growth 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 resultsIn 2018, Adobe annual sales skyrocketed a super good 23.67% to $9,030.01 M USD from $7,301.50 marked in 2017. When comparing 2018 vs 2017, nevertheless, profit margin (that is, the net income divided by revenues) escalated a 5.49% to 28.69%. Adobe fiscal year ends in November, and to compare 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 income $2,681.94 M dollars. If we compare this TTM figures with the last reported annuality, we can review Adobe business evolution since November 2018: Annual turnover up to February, compared to lastest yearly report, jumped a fine 5.78%. In contrary, profit margin (net income/sales) remained stable at 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 million with a profit margin of 25.92%. Profit margin slightly fell a -1.60% compared to previous quarter when profit margin was 27.52%. When comparing turnover to same quarter last year, Adobe sales marked an astounding growth and rocketed a 25.11%. Looking back to recent quarterly results, Adobe posted 7 positive 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 buy a company, it's worth to have a look its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Adobe, 0.28% of all outstanding shares are owned by its staff.
Bearish positions for ADBE stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Adobe:
|Market cap||$148.2 B||$39.4 B||$138.6 B||$66.7 B||$1,168.5 B|
|Total shares||484.1 M||219.6 M||877.0 M||260.3 M||7,700.0 M|
|Float shares||482.4 M||219.3 M||842.0 M||251.1 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%|
|Friday, December 6th, 2019|
|Day range||$303.16 - $306.74|
|Average true range||$4.57|
|50d mov avg||$284.81|
|100d mov avg||$287.04|
|200d mov avg||$281.97|
Adobe performanceStocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We compared Adobe against Autodesk, Salesforce.com, Intuit, Microsoft, Nuance Communications, Oracle and in the following table:
Adobe competitorsWe picked a few stocks to conform a list of Adobe competitors to examine if you are interested in investing in ADBE:
- Autodesk (ADSK)
- Salesforce.com (CRM)
- Intuit (INTU)
- Microsoft (MSFT)
- Nuance Communications (NUAN)
- Oracle (ORCL)
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