ADBE stock: buy or sell?

ADBE stock price: $287.97 0.18% At close on August 19th, 2019

Updated on:
August 19th, 2019

4

Adobe remained constant a tight 0.18% and closed at $287.97.

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.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean ADBE will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

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.
Is ADBE a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-6-19Wells Fargo & Con/aHold
2019-6-19Wedbushn/aNeutral
2019-6-19WedbushOutperformNeutral
2019-6-19StephensEqual WeightOverweight
2019-6-19Royal Bank of Canadan/aOutperform
2019-6-19KeyCorpn/aHold
2019-6-19JPMorgan Chase & Co.n/aNeutral
2019-6-19Credit Suisse GroupOutperformPositive
2019-6-19Canaccord Genuityn/aBuy
2019-6-19BMO Capital Marketsn/aOutperform
2019-6-19Barclaysn/aOverweight
2019-6-19Bank of AmericaBuyBuy
2019-4-29Morgan StanleyEqual WeightOverweight
2019-3-29Rosenblatt Securitiesn/aBuy
2019-3-15Robert W. Bairdn/aOutperform

ADBE stock analysis

Daily outlook

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.

ADBE stock chart (daily)

Weekly outlook

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 chart (weekly)

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 $308.60

How 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:
ADBE stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-6-19Wells Fargo & CoReiterates$250.00$275.0010%
2019-6-19WedbushReiterates$270.00$290.007.4%
2019-6-19WedbushRaises Target$270.00$290.007.4%
2019-6-19Royal Bank of CanadaReiteratesn/a$295.00-
2019-6-19JPMorgan Chase & Co.Raises Target$284.00$329.0015.8%
2019-6-19Credit Suisse GroupReiterates$300.00$325.008.3%
2019-6-19Canaccord GenuityReiterates$300.00$320.006.7%
2019-6-19BMO Capital MarketsRaises Target$300.00$315.005%
2019-6-19BarclaysRaises Target$304.00$330.008.6%
2019-6-19Bank of AmericaRaises Target$312.00$323.003.5%
2019-4-29Morgan StanleyUpgrades$282.00$340.0020.6%
2019-3-29Rosenblatt SecuritiesReiteratesn/a$280.00-
2019-3-15Robert W. BairdReiterates$290.00$300.003.4%
(in average)$287.50$308.607.0%
The price forecast for Adobe stock is $308.60, moving in a range between $340.00 and $275.00. In average, analysts' outlook on ADBE price target is positive, upgrading the target by a 7.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On 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.
ADBE earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.75n/a
2017-Q3-n/a0.84n/a
2017-Q42018-03-151.441.557.6%
2018-Q12018-03-151.221.284.9%
2018-Q22018-06-141.251.3810.4%
2018-Q32018-09-131.391.422.2%
2018-Q42018-12-131.561.5-3.8%
2019-Q12019-03-141.261.378.7%
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared 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%

ADBE annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$4,020 M-$290 M7.2%-
2014$4,147 M3.16%$268 M6.5%-7.45%
2015$4,796 M15.64%$630 M13.1%134.56%
2016$5,854 M22.08%$1,169 M20.0%85.65%
2017$7,302 M24.72%$1,694 M23.2%44.93%
2018$9,030 M23.67%$2,591 M28.7%52.94%
TTM $9,552 M5.78%$2,682 M28.1%3.52%

Quarterly financial results

Adobe 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.
ADBE quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$1,760 M-$374 M21.3%-
2017-Q3$1,840 M4.55%$420 M22.8%12.07%
2017-Q4$2,007 M9.05%$502 M25.0%19.54%
2018-Q1$2,079 M3.61%$583 M28.0%16.26%
2018-Q2$2,195 M5.60%$663 M30.2%13.74%
2018-Q3$2,291 M4.36%$666 M29.1%0.47%
2018-Q4$2,465 M7.57%$678 M27.5%1.79%
2019-Q1$2,601 M5.53%$674 M25.9%-0.59%

Adobe ownership

When 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:

ADBEADSKCRMINTUMSFT
Market cap$140.5 B$31.7 B$111.3 B$71.1 B$1,060.2 B
Total shares488.0 M219.6 M774.8 M259.2 M7,660.0 M
Float shares483.6 M219.3 M744.4 M249.4 M7,520.0 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 selling0.0%0.0%0.0%0.0%0.0%

ADBE summary

Monday, August 19th, 2019
Open$291.32
Close$287.97
Day range$287.17 - $291.76
Previous close$287.45
Session gain0.18%
Average true range$8.56
50d mov avg$295.95
100d mov avg$285.31
200d mov avg$265.19
Daily patternlb01a
Weekly pattern lb02a

Adobe performance

To 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.
Stock3m6m12m
ADBEAdobe4.80%11.23%10.12%
ADSKAutodesk-17.32%-10.12%8.90%
CRMSalesforce.com-7.03%-10.95%-5.68%
INTUIntuit6.69%9.67%27.61%
MSFTMicrosoft10.01%25.61%29.69%
NUANNuance Communicat...-6.60%1.46%0.18%
ORCLOracle2.44%3.46%11.12%
SAP-6.14%12.00%0.34%
SYMCSymantec18.98%1.95%22.07%
TYPEMonotype Imaging19.43%11.14%-3.69%

Adobe competitors

We selected a few stocks to conform a list of Adobe competitors to watch if you are interested in investing in ADBE:

Latest ADBE stock news