Adobe Inc ADBE is set to announce its quarterly results after the bell Thursday, and one investor sees warning signs ahead of the report.
What To Know: Decatur Capital Management's Degas Wright said he trimmed his exposure to Adobe and warned he is cautious on the stock ahead of the company's results after seeing DocuSign Inc DOCU tumble on earnings last week.
"That made me look closer at Adobe because they have a similar e-signature product," Wright said Thursday on CNBC's "Fast Money Halftime Report."
As he took a closer look, Degas said he found that Adobe seems to be better positioned because it's profitable and has a more diverse product lineup than DocuSign. Yet he noticed that analysts seem to be preparing for a selloff.
"I was really concerned because the analysts started to downgrade the stock," he said.
On Tuesday, RBC Capital analyst Matthew Hedberg maintained Adobe with an Outperform rating, but lowered the price target from $600 to $500. Citigroup analyst Tyler Radke lowered his price target from $455 to $425 and BMO Capital analyst Keith Bachman lowered his price target from $535 to $450.
"So what I did is I backed off. I'm more market weighted now in Adobe," Wright said.
Adobe is scheduled to report its fiscal second-quarter financial results after the market closes Thursday. Analysts expect the company to earn $3.31 per share on revenue of $4.34 billion, according to data from Benzinga Pro.
ADBE Price Action: Adobe has a 52-week high of $699.54 and a 52-week low of $363.12.
The stock was down 4.16% at $361.23 in afternoon trading.
Photo: Mitchell Haindfield from Flickr.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.