Traders Buy Shares of Adobe Systems (ADBE) on Weakness Following Insider Selling

Traders purchased shares of Adobe Systems Incorporated (NASDAQ:ADBE) on weakness during trading hours on Friday after an insider sold shares in the company. $295.59 million flowed into the stock on the tick-up and $226.69 million flowed out of the stock on the tick-down, for a money net flow of $68.90 million into the stock. Of all companies tracked, Adobe Systems had the 25th highest net in-flow for the day. Adobe Systems traded down ($5.64) for the day and closed at $239.64Specifically, EVP Ann Lewnes sold 2,941 shares of Adobe Systems stock in a transaction dated Wednesday, September 19th. The stock was sold at an average price of $271.14, for a total transaction of $797,422.74. Following the completion of the sale, the executive vice president now directly owns 58,557 shares of the company’s stock, valued at approximately $15,877,144.98. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Bradley Rencher sold 12,000 shares of Adobe Systems stock in a transaction dated Thursday, November 1st. The stock was sold at an average price of $245.30, for a total value of $2,943,600.00. Following the sale, the executive vice president now directly owns 68,071 shares of the company’s stock, valued at $16,697,816.30. The disclosure for this sale can be found here. Over the last quarter, insiders sold 20,790 shares of company stock valued at $5,247,062. 0.33% of the stock is currently owned by company insiders.

ADBE has been the subject of a number of recent analyst reports. Zacks Investment Research raised Adobe Systems from a “hold” rating to a “buy” rating and set a $305.00 price target for the company in a report on Thursday, October 4th. BidaskClub downgraded Adobe Systems from a “buy” rating to a “hold” rating in a report on Friday, October 5th. Guggenheim initiated coverage on Adobe Systems in a report on Tuesday, August 7th. They set a “neutral” rating and a $275.00 price target for the company. Credit Suisse Group lifted their price target on Adobe Systems from $275.00 to $300.00 and gave the stock an “outperform” rating in a report on Friday, September 14th. Finally, KeyCorp reaffirmed a “buy” rating and set a $286.00 price target (up from $276.00) on shares of Adobe Systems in a report on Friday, September 14th. Ten investment analysts have rated the stock with a hold rating and twenty-three have given a buy rating to the company’s stock. Adobe Systems presently has a consensus rating of “Buy” and a consensus target price of $269.17.

The stock has a market cap of $119.96 billion, a PE ratio of 47.91, a PEG ratio of 2.65 and a beta of 1.14. The company has a quick ratio of 1.66, a current ratio of 1.66 and a debt-to-equity ratio of 0.21.

Adobe Systems (NASDAQ:ADBE) last issued its quarterly earnings results on Thursday, September 13th. The software company reported $1.73 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.69 by $0.04. The firm had revenue of $2.29 billion for the quarter, compared to analysts’ expectations of $2.25 billion. Adobe Systems had a return on equity of 29.51% and a net margin of 28.16%. The firm’s revenue for the quarter was up 24.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.10 EPS. As a group, research analysts forecast that Adobe Systems Incorporated will post 5.66 earnings per share for the current year.

Hedge funds have recently modified their holdings of the stock. Signature Estate & Investment Advisors LLC acquired a new position in Adobe Systems in the 2nd quarter valued at about $107,000. JNBA Financial Advisors increased its position in Adobe Systems by 4,366.7% in the 3rd quarter. JNBA Financial Advisors now owns 536 shares of the software company’s stock valued at $145,000 after acquiring an additional 524 shares during the period. Centaurus Financial Inc. acquired a new position in Adobe Systems in the 2nd quarter valued at about $170,000. Cerebellum GP LLC increased its position in Adobe Systems by 55.8% in the 2nd quarter. Cerebellum GP LLC now owns 712 shares of the software company’s stock valued at $174,000 after acquiring an additional 255 shares during the period. Finally, Mckinley Capital Management LLC Delaware acquired a new position in Adobe Systems in the 2nd quarter valued at about $177,000. Hedge funds and other institutional investors own 85.02% of the company’s stock.

Adobe Systems Company Profile (NASDAQ:ADBE)

Adobe Inc 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. Its flagship product is Creative Cloud, a subscription service that allows customers to download and install the latest versions of its creative products.

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