ADBE stock: buy or sell?

ADBE stock price: $306.23 1.06% At close on December 6th, 2019

Updated on:
December 6th, 2019

5

Shares of Adobe closed on Dec 6th at $306.23 and gained a decent 1.06%.

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.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

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.
Is ADBE a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-18Wedbushn/aHold
2019-9-18Royal Bank of Canadan/aOutperform
2019-9-18Nomuran/aBuy
2019-9-18JPMorgan Chase & Co.n/aNeutral
2019-9-18Griffin Securitiesn/aBuy
2019-9-18Citigroupn/aBuy
2019-9-18BMO Capital MarketsPositiveOutperform
2019-9-13Royal Bank of Canadan/aOutperform
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

ADBE stock analysis

Daily outlook

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.

ADBE stock chart (daily)

Weekly outlook

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 chart (weekly)

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 $305.10

Nobody 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:
ADBE stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-18WedbushReiteratesn/a$290.00-
2019-9-18Royal Bank of CanadaLowers Target$320.00$315.00-1.6%
2019-9-18NomuraLowers Target$315.00$310.00-1.6%
2019-9-18JPMorgan Chase & Co.Lowers Target$329.00$318.00-3.3%
2019-9-18Griffin SecuritiesRaises Target$303.00$317.004.6%
2019-9-18CitigroupLowers Target$335.00$322.00-3.9%
2019-9-18BMO Capital MarketsReiterates$315.00$310.00-1.6%
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%
(in average)$299.10$305.102.0%
The price forecast for Adobe stock is $305.10, moving in a range between $329.00 and $275.00.

Financials and fundamental analysis

Earnings date and Earnings per Share

On 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.
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

In 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%.

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 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.
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 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:

ADBEADSKCRMINTUMSFT
Market cap$148.2 B$39.4 B$138.6 B$66.7 B$1,168.5 B
Total shares484.1 M219.6 M877.0 M260.3 M7,700.0 M
Float shares482.4 M219.3 M842.0 M251.1 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

Friday, December 6th, 2019
Open$306.20
Close$306.23
Day range$303.16 - $306.74
Previous close$303.03
Session gain1.06%
Average true range$4.57
50d mov avg$284.81
100d mov avg$287.04
200d mov avg$281.97
Daily patternlb03a
Weekly pattern

Adobe performance

Stocks 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:
Stock3m6m12m
ADBEAdobe7.47%10.09%28.67%
ADSKAutodesk19.27%8.48%35.26%
CRMSalesforce.com4.59%-2.02%16.23%
INTUIntuit-10.81%-0.12%27.54%
MSFTMicrosoft9.46%16.27%46.92%
NUANNuance Communicat...18.87%20.72%36.56%
ORCLOracle3.61%3.83%21.22%
SAP10.71%4.13%35.86%

Adobe competitors

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

Latest ADBE stock news