ADBE Stock Slips Despite Price-Target Hike

The stock sits firmly in overbought territory

Deputy Editor
Jan 21, 2020 at 9:41 AM
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Adobe Inc (NASDAQ:ABDE) is brushing off a bull note from Evercore ISI this morning, just one session after hitting an all-time high of $349.95. Specifically, the analyst raised its price target to $404 from $342 -- a roughly 15% premium to Friday's close. At last check, ADBE is down 1.2% at $345.40.

The equity has been on a tear after breaking out atop the $310 level back in December. For the past month, the stock has found support at its 10-day moving average, which it's still managing to trade north of today. During the past 12 months, ADBE has added about 43%, but with a 14-day relative strength index (RSI) of 79, the shares may have been due for a dip. 

Analyst sentiment is mostly positive. In fact, Adobe received an upgrade from Oppenheimer to "outperform" last week. Prior to today, 14 analysts called the software concern a "buy" or better. However, seven still say "hold." Plus, the consensus 12-month price target of $352.67 is right in line with Friday's close. 

On the other hand, the options pits have been quite bearish. At the the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 1.15 puts have been bought for every call during the past 10 days. This ratio sits in the 90th percentile of its annual range, suggesting this appetite for bearish bets is unusual. 

 

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