Mitsubishi UFJ Asset Management UK Ltd. bought a new stake in shares of Adobe Inc. (NASDAQ:ADBE – Free Report) during the 4th quarter, according to the company in its most recent disclosure with the SEC. The fund bought 3,000 shares of the software company’s stock, valued at approximately $1,050,000.
Several other institutional investors and hedge funds also recently bought and sold shares of ADBE. Western Pacific Wealth Management LP purchased a new position in Adobe during the 4th quarter valued at about $26,000. Measured Wealth Private Client Group LLC purchased a new position in Adobe during the 3rd quarter valued at about $26,000. KERR FINANCIAL PLANNING Corp purchased a new position in Adobe during the 3rd quarter valued at about $27,000. Caitlin John LLC purchased a new position in Adobe during the 3rd quarter valued at about $28,000. Finally, Beacon Financial Strategies CORP purchased a new position in Adobe during the 4th quarter valued at about $28,000. Hedge funds and other institutional investors own 81.79% of the company’s stock.
Key Stories Impacting Adobe
Here are the key news stories impacting Adobe this week:
- Positive Sentiment: Analyst and media commentary has turned constructive, with one report saying the software rally may still have legs and naming Adobe as a buy candidate alongside ServiceNow. This can support demand for the stock as investors rotate back into large-cap software. The software rally may still have legs. Buy ServiceNow and Adobe.
- Positive Sentiment: Multiple reports said Adobe is attracting investor attention and is a top-ranked growth stock on Zacks, which may reinforce the view that the company still has favorable fundamentals and valuation support after a big pullback from its highs. Adobe Systems (ADBE) is a Top-Ranked Growth Stock: Should You Buy?
- Positive Sentiment: Michael Burry was reported to have added Adobe to his portfolio, a notable signal that a high-profile investor sees value in the shares despite broader concerns about an AI bubble. Michael Burry adds PayPal, MercadoLibre, Adobe, Lululemon Athletica
- Neutral Sentiment: Adobe’s stock is still trading far below its 200-day moving average, which suggests the longer-term trend remains weak even after recent stabilization. Investors may see that as a reason for caution.
- Neutral Sentiment: News about a shareholder lawsuit update adds a legal headline, but the article does not indicate any new material development beyond reminding investors that litigation remains an overhang. Investors who lost money with Adobe Inc. (NASDAQ: ADBE) shares should contact the Shareholders Foundation in connection with Lawsuit
- Negative Sentiment: Michael Burry’s AI bubble warning could weigh on sentiment toward software and AI-related names, since it raises concern that parts of the sector may be overextended even if Adobe itself is not singled out. Michael Burry Invests in MercadoLibre (MELI), Adobe (ADBE), PayPal (PYPL), Lululemon (LULU) — Issues AI Bubble Alert
Insider Buying and Selling
Adobe Trading Down 0.3%
Shares of NASDAQ ADBE opened at $254.99 on Wednesday. The stock has a market cap of $103.07 billion, a price-to-earnings ratio of 14.85, a PEG ratio of 1.00 and a beta of 1.42. The business has a 50 day simple moving average of $246.83 and a 200 day simple moving average of $289.04. Adobe Inc. has a 52 week low of $224.13 and a 52 week high of $422.95. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.91 and a current ratio of 0.91.
Adobe (NASDAQ:ADBE – Get Free Report) last posted its earnings results on Thursday, March 12th. The software company reported $6.06 earnings per share for the quarter, topping the consensus estimate of $5.87 by $0.19. Adobe had a return on equity of 64.48% and a net margin of 29.48%.The firm had revenue of $6.40 billion during the quarter, compared to analyst estimates of $6.28 billion. During the same period in the previous year, the company earned $5.08 EPS. The company’s revenue for the quarter was up 12.0% on a year-over-year basis. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. On average, research analysts predict that Adobe Inc. will post 19.14 earnings per share for the current fiscal year.
Adobe announced that its board has authorized a stock buyback program on Tuesday, April 21st that authorizes the company to repurchase $25.00 billion in shares. This repurchase authorization authorizes the software company to purchase up to 24.9% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its shares are undervalued.
Analyst Ratings Changes
ADBE has been the topic of several research analyst reports. Argus reaffirmed a “hold” rating on shares of Adobe in a research note on Monday, March 16th. Jefferies Financial Group lowered their price target on Adobe from $400.00 to $290.00 and set a “hold” rating for the company in a research note on Monday, February 23rd. Piper Sandler lowered their price target on Adobe from $330.00 to $280.00 and set a “neutral” rating for the company in a research note on Friday, March 13th. The Goldman Sachs Group lowered their price target on Adobe from $290.00 to $220.00 and set a “sell” rating for the company in a research note on Friday, March 13th. Finally, UBS Group lowered their price target on Adobe from $290.00 to $260.00 and set a “neutral” rating for the company in a research note on Friday, April 17th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, sixteen have assigned a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat, Adobe currently has a consensus rating of “Hold” and an average target price of $338.15.
View Our Latest Analysis on ADBE
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.
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