Adobe dropped by 4.09% and closed the session at $513.88
- Daily trading volume (3.71 million shares) was slightly above the current multiday average of 3 million.
- Yesterday's 4.09% loss extends a 3 day bearish run in which Adobe had already lost $5.91 from its share value.
With investors awaiting market open in 8 hours, yesterday's session was noteworthy in that S&P 500 dips 1.64% before ending the session at 4,330. Nasdaq slides down 1.82% before ending the session at 13,224.
Adobe was down yesterday while similar drops were seen throughout the Technology sector (down 0.633%).
The digital media software company has fallen back around 5.15% from the significant high of $564.88 set 17 days ago.
So far in 2023, it has been beating the Nasdaq by 10.67%.
Adobe's market cap is currently $234.23 billion
daily trading volume (3.71 million shares) increased, making up 121% of the 21-day average (3 million).
Adobe last reported revenue of $4.89 billion with an EPS of $4.09.
Though some indicators look better than others in comparison to previous reports, Adobe's overall fundamentals remain slightly under the industry average.
When analyzing Adobe's indicators, the one that stands out as most significant is the company's Price-To-Earnings ratio (PE) with 46.8. It is important to keep in mind that it has been on a downtrend recently, has suffered a drop from the previous report of 33.76 , and is still below the competition average. The Price-To-Earnings ratio is the ratio of a company's share price to its earnings per share. This helps investors and analysts find out whether a company is over or undervalued. Price to sales ratio is below competition— dropping from 13.3 to 13.3.
Fundamental analysis indicates that Adobe deserves the 'Strong Buy' rating.
Trend analysis indicates that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored.
Price action pushed below a known Fibonacci support level at $512.43 by around $1.45 with prices hammering out a $513.4 - $526.29 range by session close.
Analysis based on the asset volatility indicates that Adobe's lower Bollinger Band® is at $511.95, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.
Analysis of Adobe's recent price action suggests Adobe could begin to recover as it approaches significant support, now $4.46 away from $509.42. Dipping below could be an indication that further losses are ahead.
All in all, the technical analysis suggests Adobe has no clear-cut direction.
It's worth noting that Mark Garfield, SVP & CAO of Adobe, cut down his holdings in the company Monday by selling 264 shares for $524.7 (transaction value of $138,521).
REGION: United States ASSET: Adobe (ADBE) PREV. OPEN: $519.48 PREV. CLOSE: $513.88 PRE-MARKET: $513 TIME TO OPEN: 8 hours
