Adobe (NASDAQ:ADBE) Downgraded to “Hold” Rating by Wall Street Zen

Wall Street Zen downgraded shares of Adobe (NASDAQ:ADBE) from a buy rating to a hold rating in a research report released on Saturday.

Other research analysts also recently issued research reports about the company. Mizuho lowered their price objective on Adobe from $410.00 to $390.00 and set an “outperform” rating for the company in a research note on Thursday, November 20th. Jefferies Financial Group lowered shares of Adobe from a “buy” rating to a “hold” rating and reduced their target price for the stock from $500.00 to $400.00 in a report on Monday, January 5th. DA Davidson restated a “buy” rating and issued a $500.00 price target on shares of Adobe in a research report on Thursday, December 11th. Wells Fargo & Company cut their price target on shares of Adobe from $470.00 to $420.00 and set an “overweight” rating on the stock in a report on Thursday, November 20th. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of Adobe in a report on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, twelve have assigned a Hold rating and four have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $402.85.

Adobe Stock Down 2.6%

Shares of NASDAQ:ADBE opened at $296.12 on Friday. Adobe has a 52-week low of $295.42 and a 52-week high of $465.70. The company has a market capitalization of $123.96 billion, a PE ratio of 17.72, a price-to-earnings-growth ratio of 1.17 and a beta of 1.53. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.02 and a current ratio of 1.00. The company has a fifty day moving average of $334.75 and a 200-day moving average of $347.17.

Adobe (NASDAQ:ADBE) last released its quarterly earnings data on Wednesday, December 10th. The software company reported $5.50 earnings per share for the quarter, beating the consensus estimate of $5.40 by $0.10. Adobe had a return on equity of 61.28% and a net margin of 30.00%.The company had revenue of $6.19 billion for the quarter, compared to the consensus estimate of $6.11 billion. During the same quarter last year, the business posted $4.81 EPS. Adobe’s revenue for the quarter was up 10.5% on a year-over-year basis. Adobe has set its Q1 2026 guidance at 5.850-5.900 EPS and its FY 2026 guidance at 23.300-23.500 EPS. On average, equities analysts predict that Adobe will post 16.65 EPS for the current fiscal year.

Insider Buying and Selling

In other Adobe news, CAO Jillian Forusz sold 149 shares of the stock in a transaction dated Friday, October 31st. The stock was sold at an average price of $337.88, for a total transaction of $50,344.12. Following the completion of the sale, the chief accounting officer directly owned 3,426 shares in the company, valued at approximately $1,157,576.88. This trade represents a 4.17% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 0.16% of the company’s stock.

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 bought a new stake in shares of Adobe in the 3rd quarter valued at $26,000. KERR FINANCIAL PLANNING Corp bought a new stake in Adobe in the third quarter valued at $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 purchasing an additional 56 shares in the last quarter. Caitlin John LLC acquired a new position in shares of Adobe during the third quarter valued at about $28,000. Finally, Beacon Financial Strategies CORP bought a new position in shares of Adobe during the 4th quarter worth about $28,000. 81.79% of the stock is currently owned by institutional investors.

Adobe News Summary

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Q4 2025 results showed revenue and EPS growth, expanding margins and strong operating cash flow; management provided FY‑2026 and Q1 guidance that implies continued earnings growth — supports the stock’s longer‑term case. Adobe Q4 2025 earnings
• Positive Sentiment: Most sell‑side coverage remains constructive (many Buy/Overweight ratings and median price targets well above the current level), which can anchor upside if macro sentiment stabilizes. Analyst ratings and price targets
• Neutral Sentiment: Market commentary notes fears Adobe could be disrupted by generative AI — the Motley Fool argues that disruption hasn’t materialized yet, which tempers immediate downside but keeps uncertainty elevated. 3 Top Bargain Stocks
• Neutral Sentiment: A comparative review piece mentions Adobe alongside smaller peers; such coverage is informational but unlikely to move the stock materially alone. Head to Head Review: SCIL & Adobe
• Negative Sentiment: Wall Street Zen downgraded Adobe to Hold, increasing near‑term selling pressure as investors reassess conviction. Wall Street Zen Downgrades Adobe
• Negative Sentiment: User stories and reviews highlight cheaper PDF/workflow alternatives (e.g., PDFGear) that are persuading some customers not to renew Acrobat — a potential churn/price‑sensitivity risk for subscription revenue. How PDFGear stopped me
• Negative Sentiment: Analyst/blog coverage and data outlets note recent share underperformance (down ~9% over three months) and highlight competition from MSFT, Google, OpenAI, Canva and others — reinforcing fears of an AI bubble and pressuring sentiment. Adobe Drops 9% in 3 Months
• Negative Sentiment: Opinion pieces arguing some customers are “overpaying” for Adobe may amplify value/price sensitivity narratives among retail investors. You’re overpaying Adobe
• Negative Sentiment: Market reports note today’s larger-than-market decline, reflecting the combination of the downgrade, short‑term profit‑taking and macro/AI worries. ADBE suffers larger drop

About Adobe

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.