Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

A Board Member Bought 5,000 Shares of Adobe

Page 1 of 2

Amy Banse, who sits on the Board of Directors at Adobe Systems Incorporated (NASDAQ:ADBE), bought 5,000 shares of the stock on January 16th at an average price of $38.06. This is the first time Banse has bought shares in the company; she joined the Board in May 2012, however, and so we would expect any “courtesy purchases” of stock upon becoming a Board member to have occurred some time ago.

Insider purchases can be bullish signs (read more about studies on insider trading) as insiders should prefer to diversify rather than increase their exposure to the company, unless they are confident that the market is underestimating the company. We would note, however, that several insiders sold Adobe stock in December; of course, this may have been for diversification or even capital gains reasons (the stock is currently up 26% in the last year). See a history of insider sales at Adobe. Banse also serves as head of Comcast Ventures at Comcast Corporation (NASDAQ:CMSA).


The fourth quarter of Adobe’s fiscal year ended in November, with the company reporting flat revenue from a year earlier; lower product revenue (products are by far the largest source of sales) was offset by strong growth in subscription revenues as well as increases in the services and support business. While cost of goods sold more or less reflected these trends, higher operating expenses caused operating income to decline 10% once we account for restructuring expenses in the third quarter of the last fiscal year.

Adobe Systems Incorporated now trades at 23 times trailing earnings, which seems high considering that operating income has been down. The sell-side expects better numbers in a couple years- the forward P/E, based on consensus forecasts for the fiscal year ending in November 2014, is 21- but even that valuation seems high and of course analysts are often too bullish.

Jeffrey Ubben’s ValueAct Capital had Adobe Systems Incorporated as one of its top stock picks at the end of September; the fund’s position of 31 million shares gave it over $1 billion invested in the company at that time (find more of Ubben’s favorite stocks and read more about ValueAct). Two other funds in our database of 13F filings with significant positions in Adobe were Brave Warrior Capital, managed by Glenn Greenberg (check out Greenberg’s other stock picks), and Ricky Sandler’s Eminence Capital.

How does Adobe compare to its peers?

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!