Neo Ivy Capital Management Acquires Adobe Shares Worth $401,000

Neo Ivy Capital Management has purchased 1,036 shares of Adobe Inc. (NASDAQ: ADBE), valued at approximately $401,000, as disclosed in its recent Form 13F filing with the Securities and Exchange Commission (SEC). This acquisition marks the firm’s entry into Adobe, a major player in the software industry, during the second quarter of the fiscal year.

Several other institutional investors have also adjusted their holdings in Adobe, reflecting a growing interest in the company. Notably, Assenagon Asset Management S.A. increased its stake in Adobe by an impressive 308.1% during the second quarter, acquiring an additional 2,347,562 shares. This brings their total holdings to 3,109,436 shares, now valued at around $1.2 billion.

Goldman Sachs Group Inc. also made significant moves, boosting its position by 68.3% in the first quarter, resulting in ownership of 4,575,792 shares worth approximately $1.75 billion. Nuveen LLC entered the market with a new position valued at about $607 million, while Amundi increased its holdings by 24.7%, bringing its total to 4,848,521 shares valued at around $1.78 billion.

Market Analysts Provide Insights

Market analysts have been actively evaluating Adobe’s stock, with several research firms offering their ratings. DA Davidson reaffirmed a “buy” rating, setting a price target of $500.00. In contrast, UBS Group lowered its target from $400.00 to $375.00, maintaining a “neutral” stance. Wells Fargo & Company also adjusted its price target to $420.00, down from $470.00, while Oppenheimer set a new target of $460.00, down from $500.00.

According to data from MarketBeat, the consensus rating for Adobe is currently a “Hold,” with an average target price of $428.96. Analysts have expressed a range of opinions, with one analyst issuing a Strong Buy rating, fourteen recommending a Buy, eleven suggesting a Hold, and three advising Sell.

Adobe’s Financial Performance

Adobe’s stock opened at $324.19 on September 15, 2023. Over the past year, it has experienced a low of $311.58 and a high of $557.90. The company’s market capitalization stands at $135.71 billion, with a price-to-earnings ratio of 20.20. Adobe’s recent earnings report, released on September 11, 2023, showed an earnings per share (EPS) of $5.31, exceeding analysts’ expectations of $5.18 by $0.13.

During that quarter, Adobe reported a revenue of $5.99 billion, surpassing analyst estimates of $5.91 billion. This represents a year-on-year revenue increase of 10.7%, with Adobe also providing guidance for its FY 2025 EPS at between $20.800 and $20.850.

In insider trading news, Jillian Forusz, the Chief Accounting Officer, sold 149 shares on October 31, 2023, at an average price of $337.88, totaling approximately $50,344.12. Following this transaction, she holds 3,426 shares valued at about $1.16 million. Insider ownership of Adobe stock currently stands at 0.16%.

Adobe Inc., along with its subsidiaries, operates as a diversified software company globally. It functions through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment provides tools and services that empower users to create, publish, and promote content, alongside its Document Cloud services.