ValueAct Sells Adobe Systems Incorporated (ADBE) Shares Worth $55 Mln

Jeffrey Ubben‘s ValueAct Capital has reported reducing its exposure to Adobe Systems Incorporated (NASDAQ:ADBE). According to SEC filings, ValueAct has sold 750,000 shares of the company, currently holding some 24.56 million shares. The securities have been disposed in five transactions, the average price amounting to $72.74 per share. The activist stake held by ValueAct after the sale amasses 4.9% of Adobe’s common stock.

VALUEACT CAPITAL

ValueAct has been holding shares of Adobe Systems Incorporated (NASDAQ:ADBE) for the last couple of years, although around six months ago, the stake amounted to 31.30 million shares, being decreased to 25.31 million shares during the last quarter of 2014. Nevertheless, Adobe was the fourth-largest stake in ValueAct’s equity portfolio at the end of the first quarter, amassing over 12% of the total 13F portfolio’s value. At the same time, ValueAct is one of the largest shareholders of the company, among institutional investors. Stephen Mandel‘s Lone Pine Capital has also added Adobe Systems Incorporated (NASDAQ:ADBE) to its equity portfolio during the first quarter, reporting 6.6 million shares in its latest 13F filing. Sean Cullinan‘s Point State Capital boosted its stake in the company by more than 800% during the same period, last reporting ownership of 3.49 million shares.

There are plenty of reasons for investors to like this $36 billion application software company. Adobe Systems Incorporated (NASDAQ:ADBE)’s stock went up by 20% since the beginning of the year, and jumped by 57% over the past 52 weeks. It trades at a P/E of above 130, which is one of the highest in the industry and above the average of around 40. At the same time, in the past several quarters, Adobe has been mostly beating the consensus estimates for EPS and revenue. For the last quarter, it reported earnings of $0.30, which is roughly 20% above the estimates. For the whole 2014, Adobe Systems Incorporated (NASDAQ:ADBE) is expected to post earnings of around $1.20 per share, and revenues of $4.2 billion, versus $1.34 and $4.1 billion reported for the last year.

Disclosure: none

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Subscribe

Enter your email:

Delivered by FeedBurner

X

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!