Behind the Scenes of Adobe's Success Story in 2016
Adobe’s shareholder returns and stock trends
As of March 25, 2016, Adobe (ADBE) has generated returns of ~19.6% in the trailing-12-month period and nearly 14.4% in the trailing-one-month period. The share price of the firm has increased by ~6.3% in the trailing five-day period.
By comparison, Adobe’s peers in the application software space, Salesforce.com (CRM), SAP AG (SAP), and Workday (WDAY) have generated returns of 0.04%, ~1.1%, and 0.66%, respectively, in the trailing five-day period.
Adobe’s moving averages, MACD, and RSI
On March 25, 2016, the last trading price of Adobe was $92.52. The company’s stock was trading 8% below its 20-day moving average of $86, 8.9% below its 50-day moving average of $85, and 4.5% above its 100-day moving average of $88.
A company’s MACD (moving average convergence divergence) is the difference between its short-term and long-term moving averages. Adobe’s 14-day MACD of 0.66 shows an upward trading trend, as the figure is positive.
The 14-day RSI (relative strength index) for Adobe is 69, which shows that the stock is on the verge of being overbought. (If an RSI is above 70, it indicates that the company’s stock has been overbought. An RSI figure below 30 suggests that a stock has been oversold.)
Adobe (ADBE) constitutes 0.26% of the SPDR S&P 500 ETF (SPY) and 0.91% of the PowerShares QQQ (QQQ).
Analyst recommendations for Adobe after 1Q16
Out of 22 analysts covering Adobe’s stock, 18 analysts have issued “buy” recommendations, and six have issued “hold” recommendations.” There is no “sell” recommendation on the stock. The analyst stock price target for the company is $107.65, with a median target estimate of $109.50.
J.P. Morgan lifted its target for Adobe’s stock to $110 from $100, while Wunderlich increased its target to $99 from $94. Pivotal Research Group, Susquehanna Financial Group, RBC Capital Markets, and JMP Securities are among the other research houses that have raised their price targets for Adobe’s stock.
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