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Billionaire Buzz at Adobe Systems – Ubben Reduces, Insiders Sell
Posted by: Sally Jones (IP Logged)
Date: October 18, 2013 05:26PM

The third quarter portfolio update of ValueAct Capital, led by Guru Jeff Ubben, lists 14 stocks, with two of them new. The fund’s total value is $9.73 billion, with a quarter-over-quarter turnover of 13%. The portfolio is currently weighted with top four sectors: health care at 17.6%, technology at 9.9%, real estate at 7.7% and financial services at 7.6%. Ubben has averaged a return of 19.21% over 12 months.

Adobe Systems' insiders are selling and Jeff Ubben just reduced his position with Adobe Systems Inc. (ADBE), the creative design and digital analytics software company. Here’s a company update and Ubben’s trade details, according to GuruFocus Real Time Picks.

Adobe Systems Inc. (ADBE): Reduced

Impacts Portfolio: -1.35%

Up 58% over 12 months, Adobe Systems Inc. has a market cap of $26.23 billion; shares trade with a P/E of 59.60 and a P/B of 3.80.

Originally incorporated in 1983, Adobe Systems Inc. is a global software company. The company offers a line of software and services used by creative professionals, marketers, knowledge workers, application developers, enterprises and consumers for creating, managing, delivering, measuring, optimizing and engaging with compelling content and experiences across multiple operating systems, devices and media.

Adobe Systems Inc. reported financial results for its third quarter of fiscal year 2013, ending Aug. 30, 2013, with revenue of $995.1 million, down from $1,080,580 in the same quarter of 2012. GAPP earnings per diluted share of $0.16 were reported for the third fiscal quarter, during which the company acquired Neolane which added around $6 million to revenue for the quarter. Adobe Creative Cloud had over one million subscribers in the quarter, up by 331,000 subscribers, with year-over-year total revenue growth of 28% at $254.9 million for the segment.

Adobe’s president and CEO, Shantanu Narayen commented on the reason for the Neolane acquisition in a company press release, saying, “We successfully completed the acquisition of Neolane, adding a critical cross-channel campaign management solution to the Adobe Marketing Cloud, which will further extend our leadership position in digital marketing.”

Guru Action: As of Oct. 17, 2013, Jeff Ubben reduced his position by 8.09%, selling shares in the average price range of $51.91.

The current share price is $52.07 with a change from average of 0%.

His current shares are 28,770,256 or 5.73% of shares outstanding.

Across seven quarters of pure gains, Guru Ubben has averaged a gain of 80% on 31,303,362 shares bought at an average price of $28.95 per share. His highest gain on the holding was 97% in the third quarter of 2011 when he bought 12,008,550 shares at an average price of $26.43 per share.

Track historical pricing, revenue and net income:

Guru Jeff Ubben is one of eight gurus holding ADBE as of the second quarter of 2013, and there is very active insider trading.

More Guru Action:

Across a five-year history, PRIMECAP Management has also averaged a gain of 80% on 13,011,610 shares bought at an average price of $29.12 per share. Selling 5,833,408 shares at an average price of $35.58 per share, the firm has gained 47%.

PRIMECAP Management holds 40,090,232 shares or 7.98% of shares outstanding as of the second quarter of 2013.

Guru Louis Moore Bacon sold out his ADBE holding in the second quarter of 2013, gaining 18.8% selling 10,000 shares at an average price of $44.30 per share. Bacon has gained in every quarter of his seven-quarter trading history. Gains peaked at 83.7% in the fourth quarter of 2010 when he sold 100,000 shares at an average price of $28.66 per share.

Jeff Ubben is a founder, CEO and CIO of ValueAct Capital. Prior to founding ValueAct Capital in 2000, Guru Ubben was a managing partner at Blum Capital Partners for more than five years. He has extensive corporate experience as a former chairman and director of Martha Stewart Living Omnimedia Inc., a former director of Acxiom Corp., Catalina Marketing Corp., Gartner Group Inc., Insurance Auto Auctions Inc., Mentor Corporation, Omnicare Inc., Misys PLC, Per-Se Technologies Inc., Sara Lee Corp. and others.

Check out Jeff Ubben’s portfolio.

GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

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Guru Discussed: Ubben Reduces: Current Portfolio, Stock Picks
Stocks Discussed: ADBE,
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