ADBE stock: buy or sell?
May 21st, 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. 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.
|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 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.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-4-29||Morgan Stanley||Equal Weight||Overweight|
|2019-3-15||Robert W. Baird||n/a||Outperform|
|2019-3-15||Robert W. Baird||n/a||Outperform|
|2019-1-25||Credit Suisse Group||n/a||Buy|
ADBE stock analysis
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.
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 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 $290.20Predicting 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:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-3-15||Robert W. Baird||Reiterates||$290.00||$300.00||3.4%|
|2019-3-15||Robert W. Baird||Raises Target||$290.00||$300.00||3.4%|
|2019-3-15||Canaccord Genuity||Raises Target||$290.00||$300.00||3.4%|
|2019-1-25||Credit Suisse Group||Reiterates||n/a||$300.00||-|
Financials and fundamental analysis
Earnings date and Earnings per ShareAdobe 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 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%.
|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 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.
|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 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:
|Market cap||$135.7 B||$37.6 B||$120.7 B||$63.8 B||$972.1 B|
|Total shares||488.0 M||220.2 M||774.8 M||259.1 M||7,660.0 M|
|Float shares||486.4 M||219.3 M||735.8 M||249.1 M||7,560.0 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 selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Tuesday, May 21st, 2019|
|Day range||$277.05 - $280.00|
|Average true range||$7.38|
|50d mov avg||$271.93|
|100d mov avg||$259.75|
|200d mov avg||$254.71|
Adobe performancePerformance 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:
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)
- Red Hat (RHT)
- Symantec (SYMC)
- Monotype Imaging (TYPE)
Latest ADBE stock news
- Seeking AlphaWhy I Remain Long AdobeMay 20, 2019
- InvestorPlaceDon’t Look Now, But Adobe Stock is Finally a ShortMay 17, 2019
- InvestorPlaceEven Without the Trade War, Adobe Stock Won’t See $300 Anytime SoonMay 15, 2019
- InvestorPlaceAdobe Stock Is a Good Long-Term InvestmentMay 9, 2019
- Seeking AlphaAdobe: One Step Ahead Of The MarketMay 8, 2019