5 Stocks to Invest In Now According to David Thomas’s Atalan Capital

2. Adobe Inc. (NASDAQ:ADBE)

Atalan Capital’s Stake Value: $169.83 million

Percentage of Atalan Capital’s 13F Portfolio: 10.58%

Number of Hedge Fund Holders: 95

David Thomas’s Atalan Capital owns 295,000 shares in Adobe Inc. (NASDAQ:ADBE), valued at $169.83 million at the end of the third quarter. This represents 10.58% of the fund’s total holdings. Hedge fund sentiment is positive on Adobe Inc. (NASDAQ:ADBE), with 95 hedge funds reporting stakes in the company at the close of the third quarter, in contrast to 89 hedge funds a quarter ago.

Adobe Inc. (NASDAQ:ADBE) is a software company that offers media and marketing products, including Adobe Photoshop, and operates through its segments: Digital Media, Digital Experience, and Publishing and Advertising.

On January 21, Deutsche Bank analyst Brad Zelnick maintained a ‘Buy’ rating on Adobe Inc. (NASDAQ:ADBE) shares, and lowered the price target to $660 from $715, noting that he remained bullish on the software industry heading into 2022.

Richie Capital Group, an investment firm, talked about Adobe Inc. (NASDAQ:ADBE) in its investor letter for the second quarter of 2021. Here’s what it said:

Adobe Systems (ADBE – up 24.8%) – In the last 15 years, Adobe has transformed itself into a software behemoth, more than tripling its revenue since 2010. The company is famous for its namesake PDF-reader and photo-editing software Photoshop. However, ADBE sells a full suite of software products through a recurring subscription model. The company transitioned from selling boxed software to recurring subscriptions in 2013 and revenues have grown consistently since. The company achieved $13B in revenue in 2020 with 88% Gross Margins.”