Adobe (NASDAQ:ADBE) Hits New 1-Year Low – What’s Next?

Adobe Inc. (NASDAQ:ADBE) hit a new 52-week low on Tuesday . The company traded as low as $310.55 and last traded at $309.7950, with a volume of 3905183 shares traded. The stock had previously closed at $327.65.

Adobe News Summary

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Retail investors remain active and bullish in some venues despite price weakness; articles note continued retail buying that could provide short‑term support. ADBE shares slip on analyst downgrades — but why is retail bullish?
• Positive Sentiment: Some bullish commentary argues Adobe remains an attractive long‑term opportunity based on its recurring revenue, margin profile and AI product positioning, which helps explain why some investors defend the shares. What Makes Adobe (ADBE) an Attractive Opportunity?
• Neutral Sentiment: Short‑interest report in the cycle shows anomalous/zero values (likely a data issue), so current short‑interest metrics aren’t providing clear directional clues. Finviz (short interest summary)
• Negative Sentiment: BMO downgraded ADBE to Market Perform and cut its PT to $375 from $400, saying near‑term catalysts are limited and expecting range‑bound shares. Adobe (ADBE) Downgraded as Analysts See Limited Near-Term Catalysts
• Negative Sentiment: Oppenheimer cut its rating (coverage notes and press coverage) — one of several firms trimming recommendations today — which amplified selling pressure. Adobe Shares Slide After Oppenheimer Downgrade
• Negative Sentiment: Goldman initiated coverage with a Sell and a $290 price target, signaling near‑term downside versus prior levels and adding to price‑target cuts piling up. ADBE assumed with a Sell at Goldman Sachs
• Negative Sentiment: Jefferies downgraded Adobe from Buy to Hold and cut its PT as part of a broader software‑sector re‑rating, citing rising competition and a tougher outlook for multiple software names. Jefferies Cautious on Adobe (ADBE)
• Negative Sentiment: Analyst commentary and pieces (TipRanks) highlight unusually pessimistic forecasts from some strategists — the most bearish views in years — which pressured sentiment and triggered headlines. Adobe Stock Drops as The Most Pessimistic Analyst Forecast Since 2013 Hits ADBE Shares
• Negative Sentiment: Competitive pressure from Apple’s lower‑cost creative app suite is receiving media attention as a potential longer‑term threat to Adobe’s Creative Cloud pricing/premium positioning. Apple Hits Adobe With an Affordable Creative App Suite
• Negative Sentiment: Shares hit a 52‑week low in intraday trading, reflecting the cumulative effect of downgrades, price‑target cuts and competition concerns. Adobe stock hits 52-week low at $311.55

Wall Street Analysts Forecast Growth

Several research firms have weighed in on ADBE. Weiss Ratings reiterated a “hold (c-)” rating on shares of Adobe in a report on Monday, December 29th. Mizuho dropped their price target on Adobe from $410.00 to $390.00 and set an “outperform” rating on the stock in a research report on Thursday, November 20th. BMO Capital Markets cut Adobe from an “outperform” rating to a “market perform” rating and cut their price objective for the company from $400.00 to $375.00 in a report on Friday. Royal Bank Of Canada reissued an “outperform” rating and set a $430.00 target price on shares of Adobe in a research note on Thursday, December 11th. Finally, Jefferies Financial Group downgraded shares of Adobe from a “buy” rating to a “hold” rating and dropped their target price for the stock from $500.00 to $400.00 in a report on Monday, January 5th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, thirteen have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $406.44.

Adobe Stock Down 5.4%

The company has a current ratio of 1.00, a quick ratio of 1.02 and a debt-to-equity ratio of 0.53. The company has a market capitalization of $129.74 billion, a P/E ratio of 18.55, a PEG ratio of 1.31 and a beta of 1.53. The firm’s 50 day moving average price is $336.96 and its two-hundred day moving average price is $349.26.

Adobe (NASDAQ:ADBE) last announced its earnings results on Wednesday, December 10th. The software company reported $5.50 EPS for the quarter, topping the consensus estimate of $5.40 by $0.10. The business had revenue of $6.19 billion during the quarter, compared to analysts’ expectations of $6.11 billion. Adobe had a net margin of 30.00% and a return on equity of 61.28%. The firm’s revenue was up 10.5% on a year-over-year basis. During the same quarter in the prior year, the company posted $4.81 earnings per share. Adobe has set its Q1 2026 guidance at 5.850-5.900 EPS and its FY 2026 guidance at 23.300-23.500 EPS. Equities research analysts forecast that Adobe Inc. will post 16.65 EPS for the current year.

Insider Buying and Selling at Adobe

In related news, CAO Jillian Forusz sold 149 shares of Adobe stock in a transaction dated Friday, October 31st. The stock was sold at an average price of $337.88, for a total value of $50,344.12. Following the sale, the chief accounting officer owned 3,426 shares of the company’s stock, valued at approximately $1,157,576.88. The trade was a 4.17% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.16% of the stock is owned by insiders.

Institutional Investors Weigh In On Adobe

Hedge funds have recently added to or reduced their stakes in the business. Measured Wealth Private Client Group LLC acquired a new stake in shares of Adobe during the 3rd quarter worth about $26,000. KERR FINANCIAL PLANNING Corp acquired a new stake in shares of Adobe during the 3rd quarter worth approximately $27,000. LSV Asset Management increased its stake in Adobe by 350.0% in the second quarter. LSV Asset Management now owns 72 shares of the software company’s stock valued at $28,000 after acquiring an additional 56 shares during the last quarter. Caitlin John LLC acquired a new position in Adobe during the third quarter valued at approximately $28,000. Finally, Beacon Financial Strategies CORP bought a new stake in Adobe during the fourth quarter worth $28,000. Institutional investors and hedge funds own 81.79% of the company’s stock.

Adobe Company Profile

Adobe Inc, founded in 1982 by John Warnock and Charles Geschke and headquartered in San Jose, California, is a global software company that develops tools and services for creative professionals, marketers and enterprises. Under the leadership of CEO Shantanu Narayen, who has led the company since 2007, Adobe has evolved from a provider of desktop publishing tools into a cloud-centric provider of digital media and digital experience solutions.

The company’s core offerings are organized around digital media and digital experience.