Adobe Inc. (NASDAQ:ADBE) is among the top losers of the stock market today, sinking -3.46% or (-9.38 points) to $261.52 from its previous close of $270.9. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 2195363 contracts so far this session. ADBE shares had a relatively better volume day versus average trading capacity of 2.63 million shares, but with a 0.49 billion float and a -1.22% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for ADBE stock indicates that the average analyst price target is $295.38 per share. This means the stock has a potential increase of 12.95% from where the ADBE share price has been trading recently which is between $268.75 and $272.91. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $250.
The shorts are climbing into Adobe Inc. (ADBE) stock. The latest set of short interest data was released on 15 May 2019, and the numbers show a rise in short interest in ADBE shares. While short interest still represents only 0.97% of ADBE’s float, the number of shares shorted have risen by 218328. The number of shares shorted advanced to 4930215 shares, up from 4711887 shares during the preceding fortnight. With average daily trading volumes at 2279753 shares, days to cover increased to about 1.924492 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Adobe Falls 3%” and dated June 03, 2019.
During the recent trading session for Adobe Inc. (NASDAQ:ADBE), the company witnessed their stock drop by $-13.14 over a week and tumble down $-23.95 from the price 20 days ago. When compared to their established 52-week high of $291.7, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 04/29/19. The recent low of $204.95 stood for a -10.35% since 12/24/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.12 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.
Looking at the current readings for Adobe Inc., the two-week RSI stands at 36.9. This figure suggests that ADBE stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current ADBE readings is similarly very revealing as it has a stochastic reading of 19.97% at this stage. This figure means that ADBE share price today is being overbought.
Technical chart claims that Adobe Inc. (ADBE) would settle between $272.96/share to $275.01/share level. However, if the stock price goes below the $268.8 mark, then the market for Adobe Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $266.69 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -5.16. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at Morgan Stanley raised their recommendation on shares of ADBE from Equal-Weight to Overweight in their opinion released on April 29. Canaccord Genuity analysts again handed out a Buy recommendation to Adobe Inc. (NASDAQ:ADBE) stock but they lifted target price for the shares in a flash note issued to investors on March 15. The target price has been raised from $290 to $300. Analysts at KeyBanc Capital Markets lowered the stock to a Sector Weight call from its previous Overweight recommendation, in a research note that dated back to March 15.
ADBE equity has an average rating of 2.07, with the figure leaning towards a bullish end. 30 analysts who tracked the company were contacted by Reuters. Amongst them, 12 rated the stock as a hold while the remaining 18 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 18 analysts rated Adobe Inc. (NASDAQ:ADBE) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, ADBE stock price is currently trading at 27.95X forward 12-month Consensus EPS estimates, and its P/S ratio is 13.84 while for the average stock in the same group, the multiple is 9.37. Adobe Inc. current P/E ratio of 49.06 means it is trading at a discount against its industry’s 71.51. In the past 5 years, this ratio for the stock has been fluctuating between 43.03 and 139.59.
Adobe Inc. (ADBE)’s current-quarter revenues are projected to climb by nearly 22.99% to hit $2.7 billion, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over 23.45% from $9.03 billion to a noteworthy $11.15 billion. At the other end of the current quarter income statement, Adobe Inc. is expected to see its adjusted earnings surge by roughly 7.23% to hit $1.78 per share. For the fiscal year, ADBE’s earnings are projected to climb by roughly 15.53% to hit $7.81 per share.