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Adobe (ADBE) CFO Buys Company Stock as Share Price Declines

Adobe (ADBE) CFO Buys Company Stock as Share Price Declines

The chief financial officer (CFO) of creative software maker Adobe (ADBE) is treating the ongoing decline in the company’s stock as a buying opportunity.

On March 20, CFO Dan Durn paid $508,000 for 1,300 ADBE shares at an average price of $390.58 each. He now owns 29,876 Adobe shares worth $11.6 million, according to a filing with the U.S. Securities and Exchange Commission (SEC).

Durn last bought ADBE stock on the open market in September 2022, when the executive paid $936,360 for 3,250 shares at an average price of $288.11 each. His latest purchase of Adobe’s stock comes with the share price down 21% over the last 12 months, including an 11% decline so far this year.

AI Concerns

ADBE stock has pulled back over concerns about the impact artificial intelligence will have on the company’s creative software products that include Illustrator, InDesign, and Photoshop. Adobe has responded to the threat by integrating more AI features into its products.

Earlier in March, Adobe reported strong quarterly financial results that beat Wall Street’s targets on the top and bottom lines. The company announced earnings per share (EPS) of $5.08, which was ahead of forecasts that called for $4.97. Revenue in the final three months of last year came in at $5.71 billion, which topped analysts’ consensus estimates of $5.66 billion. Sales were up 10% from a year earlier.

Despite the strong print, ADBE stock has continued to slump.

Is ADBE Stock a Buy?

Adobe has a consensus Moderate Buy rating among 29 Wall Street analysts. That rating is based on 19 Buy and 10 Hold recommendations assigned in the last three months. The average ADBE price target of $528.23 implies 36.14% upside from current levels.

Read more analyst ratings on ADBE stock

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