Adobe Inc (NASDAQ:ADBE) stock is down 1.6% to trade at $241.58 at last check, after a Mizuho downgrade to "neutral" from "outperform" and a price-target cut to $270 from $315. The analyst cited increased competition for the software company's products, as well as possible strategic acquisitions or investments that could pressure margins.
ADBE already carries a 30.8% year-to-date deficit, and isn't too far removed from its April 9, roughly eight-year low of $224.13. The shares are also now facing pressure at $260 region, which turned down last week's rally.
The options pits lean bullish toward Adobe stock, so a shift in sentiment could generate even more headwinds. The security's 50-day call/put volume ratio of 2.13 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits in the 95th percentile of annual readings.
Now could be a good time to bet on the stock's next moves, as options look affordable. In fact, the stock's Schaeffer's Volatility Index (SVI) of 44% ranks in the low 28th percentile of readings from the past year.
