Baker Tilly Wealth Management LLC Reduces Stake in Adobe Inc.

Baker Tilly Wealth Management LLC has decreased its investment in Adobe Inc. (NASDAQ:ADBE) by 5.5% during the fourth quarter, as reported in the latest filing with the Securities and Exchange Commission. Following the sale of 62 shares during this period, the firm now holds 1,073 shares of the software giant, which were valued at approximately $477,000 at the close of the reporting period.

Other institutional investors have also made changes to their stakes in Adobe. Fortitude Family Office LLC increased its holdings by 15.6% in the fourth quarter, acquiring an additional 27 shares to reach a total of 200 shares now valued at $89,000. Fulton Bank N.A. raised its position by 3.2%, adding 499 shares to own 16,180 shares worth about $7,195,000. Northcape Capital Pty Ltd significantly boosted its investment by 44.4%, acquiring 1,585 additional shares to hold 5,155 shares valued at $2,292,000. One Wealth Capital Management LLC initiated a new position in Adobe, which is estimated at $1,057,000. Lastly, Norway Savings Bank increased its stake by 33.3%, now holding 2,262 shares worth about $1,006,000. Collectively, institutional investors own 81.79% of Adobe’s stock.

Insider Activity

In addition to institutional movements, there have been notable insider transactions. Director Amy Banse sold 606 shares of Adobe on December 6th, with the shares sold at an average price of $550.00, resulting in a total sale value of $333,300. Following this transaction, she retains 32,929 shares valued at around $18,110,950, reflecting a 1.81% reduction in her holdings. Meanwhile, Executive Vice President Scott Belsky sold 1,530 shares on October 15th for an average price of $513.82, yielding a total of $786,144.60. Post-sale, he holds 18,831 shares valued at approximately $9,675,744.42, indicating a 7.51% decrease in his stake. Over the last three months, insiders have sold a total of 3,293 shares for $1,679,809, and currently, corporate insiders own 0.15% of Adobe's stock.

Wall Street Analyst Insights

Wall Street analysts have recently revised their outlooks on Adobe, with several firms adjusting their price targets. Mizuho lowered its price target from $640.00 to $620.00 while maintaining an “outperform” rating. Similarly, Piper Sandler adjusted its target down from $635.00 to $600.00, also rating the stock as “overweight.” Oppenheimer made a similar cut to $600.00 with an “outperform” rating. UBS Group set a neutral rating and adjusted its target from $525.00 to $475.00. Royal Bank of Canada reduced its target from $610.00 to $590.00, maintaining an “outperform” stance. Overall, two analysts have rated Adobe as a sell, nine as hold, sixteen as buy, and two as strong buy. MarketBeat reports a consensus rating of “Moderate Buy” for the stock, with an overall price target set at $575.85.

Adobe's Stock Performance

On recent trading days, shares of Adobe opened at $405.92. The company showcases a 50-day simple moving average of $484.01 alongside a 200-day simple moving average of $517.15. Its stock has seen a low of $405.32 and a high of $638.25 within the past year. Adobe holds a market capitalization of $178.69 billion, with a price-to-earnings ratio of 32.74, a P/E/G ratio of 2.51, and a beta of 1.31, indicating a relatively stable stock performance in relation to the market. The company maintains a debt-to-equity ratio of 0.28, with both a quick ratio and current ratio at 1.11.

Adobe released its latest quarterly earnings report on December 11th, with earnings per share recorded at $4.81, surpassing analyst projections of $4.67. Revenue for the quarter stood at $5.61 billion, exceeding estimates of $5.54 billion, reflecting an impressive return on equity of 45.22% and a net margin of 25.85%. Adobe's quarterly revenue represented an 11.1% increase year-over-year, up from $3.52 EPS in the same quarter the previous year. Analysts forecast that Adobe Inc. is expected to achieve an EPS of 16.73 for the current fiscal year.

About Adobe Inc.

Adobe Inc. operates as a global software company through its various subsidiaries. The company is divided into three primary segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment provides a range of products, services, and solutions that empower individuals and businesses to create, publish, and promote content, as well as offering Document Cloud, a cloud-based document services platform.

Baker, Tilly, Adobe