ADBE stock: buy or sell?

ADBE stock price: $278.07 0.95% At close on May 21st, 2019

Updated on:
May 21st, 2019

5

Adobe shares raised 0.95% to $278.07 today.

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. Having a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Adobe stock doesn't match any of these trading strategies, so our recommendation is not to buy.

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 published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 10 ratings published for ADBE stock in the last month.

The general sentiment of these ratings is bullish for ADBE stock, with 7 positive ratings.
Is ADBE a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-4-29Morgan StanleyEqual WeightOverweight
2019-3-29Rosenblatt Securitiesn/aBuy
2019-3-15Robert W. Bairdn/aOutperform
2019-3-15Robert W. Bairdn/aOutperform
2019-3-15Canaccord GenuityBuyBuy
2019-2-22DZ BankBuyHold
2019-2-15CowenOutperformMarket Perform
2019-1-9Atlantic Securitiesn/aNeutral
2019-1-7Pivotal ResearchHoldBuy
2019-1-25Credit Suisse Groupn/aBuy

ADBE stock analysis

Daily outlook

Adobe shares raised 0.95% to $278.07 today.

Adobe shares raised 0.95% to $278.07 today. In the last 20 days when SMA100d and SMA200d crossed up, ADBE price slipped $-11.18 per share (-3.87%). Since price and SMA200d lines crossed up on January, ADBE climbed $35.40 (14.59%). On Apr/29, ADBE hit a new all time high, pushing higher than on Apr 26th tops. Check different trading setups that use ATHs as triggers.

ADBE stock chart (daily)

Weekly outlook

Shares of Adobe closed this week at $278.07 and decreased an ugly -0.64%.

ADBE shows a long term strength with several rising tops and rising bottoms. It left a new bottom at $267.22 last week. Previous top ($291.71) will play as a resistance in possible new gains. Not so far away is the last all-time high Adobe marked late April. Since SMA20w and SMA40w crossed up late April, ADBE price slid a -1.38%. Since price and SMA40w lines crossed up late January, ADBE climbed $33.12 (13.52%).

ADBE stock chart (weekly)

ADBE stock price history

ADBE IPO was on August 13th, 1986 at $0.08 per share1. Since then, ADBE stock grew a 347,487.50%, with an average of 10,859.00% per year. If you had invested right after ADBE's IPO a $1,000 in ADBE stock in 1986, it would worth $3,474,875.00 today.

1: Adjusted price after possible price splits or reverse-splits.

ADBE stock historical price chart

ADBE stock reached all-time highs on Apr/29 with a price of $291.71.

ADBE stock price target is $290.20

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. 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 month we found 9 price targets for ADBE stock:
ADBE stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
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%
2019-3-15Robert W. BairdRaises Target$290.00$300.003.4%
2019-3-15Canaccord GenuityRaises Target$290.00$300.003.4%
2019-2-15CowenDowngradesn/a$280.00-
2019-1-9Atlantic SecuritiesInitiatesn/a$250.00-
2019-1-7Pivotal ResearchUpgrades$252.00$262.004%
2019-1-25Credit Suisse GroupReiteratesn/a$300.00-
(in average)$280.80$290.203.0%
The price forecast for Adobe stock is $290.20, moving in a range between $340.00 and $250.00. In average, analysts' outlook on ADBE price target is positive, improving the target by a 3.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Adobe presented good results for 2019-Q1 on March. Adobe grew Earnings per Share (EPS) by 8.70%, beating experts consensus of $1.26. 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 rocketed an amazing 23.67% to $9,030.01 million USD from $7,301.50 marked in 2017. On the other hand, its profit margin (compared to revenues) soared to 28.69%, that is $2,590.77 million.

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 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 turnover up to February, compared to lastest yearly report, escalated a decent 5.78%. Improving that, profit margin (net income/sales) stayed constant 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 income marked $674.24 million with a profit margin of 25.92%. Profit margin decreased a -1.60% compared to previous quarter when profit margin was 27.52%. When comparing revenues to same quarter last year, Adobe sales marked an extraordinary increase and climbed 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 buy shares of a company, it's always worth to review 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$135.7 B$37.6 B$120.7 B$63.8 B$972.1 B
Total shares488.0 M220.2 M774.8 M259.1 M7,660.0 M
Float shares486.4 M219.3 M735.8 M249.1 M7,560.0 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

Tuesday, May 21st, 2019
Open$278.21
Close$278.07
Day range$277.05 - $280.00
Previous close$275.45
Session gain0.95%
Average true range$7.38
50d mov avg$271.93
100d mov avg$259.75
200d mov avg$254.71
Daily patternlt01a
Weekly pattern lb03a

Adobe performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare Adobe to Autodesk, Salesforce.com, Intuit, Microsoft, Nuance Communications, Oracle, Red Hat, , Symantec and Monotype Imaging:
Stock3m6m12m
ADBEAdobe7.40%23.28%14.17%
ADSKAutodesk5.63%28.58%28.52%
CRMSalesforce.com-3.42%27.67%21.76%
INTUIntuit-1.76%25.40%25.88%
MSFTMicrosoft14.78%24.11%31.11%
NUANNuance Communicat...7.32%8.10%27.88%
ORCLOracle3.67%12.18%17.15%
RHTRed Hat1.80%6.27%12.74%
SAP18.75%27.37%12.80%
SYMCSymantec-11.56%-7.30%-3.47%
TYPEMonotype Imaging-13.36%-0.24%-19.45%

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