Ironvine Capital Partners LLC decreased its holdings in Adobe Inc. (NASDAQ:ADBE – Free Report) by 34.7% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 17,366 shares of the software company’s stock after selling 9,227 shares during the period. Ironvine Capital Partners LLC’s holdings in Adobe were worth $6,078,000 at the end of the most recent quarter.
Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Measured Wealth Private Client Group LLC purchased a new stake in Adobe during the third quarter valued at approximately $26,000. Western Pacific Wealth Management LP purchased a new position in shares of Adobe in the 4th quarter worth approximately $26,000. Caitlin John LLC bought a new position in shares of Adobe during the 3rd quarter valued at approximately $28,000. Beacon Financial Strategies CORP bought a new position in shares of Adobe during the 4th quarter valued at approximately $28,000. Finally, TrustBank purchased a new stake in Adobe during the 4th quarter valued at $28,000. Hedge funds and other institutional investors own 81.79% of the company’s stock.
Adobe Stock Down 6.8%
Shares of ADBE opened at $204.02 on Friday. The firm has a fifty day moving average price of $244.54 and a 200-day moving average price of $278.61. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.47. The firm has a market capitalization of $82.46 billion, a P/E ratio of 11.67, a P/E/G ratio of 0.85 and a beta of 1.42. Adobe Inc. has a 12-month low of $196.90 and a 12-month high of $405.00.
Adobe declared that its Board of Directors has approved a stock repurchase plan on Tuesday, April 21st that permits the company to buyback $25.00 billion in outstanding shares. This buyback authorization permits the software company to reacquire up to 24.9% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s management believes its stock is undervalued.
Key Stories Impacting Adobe
Here are the key news stories impacting Adobe this week:
- Positive Sentiment: Adobe reported record Q2 revenue of $6.62 billion and EPS of $5.96, both above expectations, while also raising full-year revenue and earnings guidance. The company said AI-driven demand and stronger subscription spending supported results. Adobe Reports Record Q2 Results
- Positive Sentiment: Management highlighted accelerating adoption of Adobe’s AI tools, with AI-first annual recurring revenue topping $500 million, which supports the long-term growth case. Adobe Q2 Earnings Beat Estimates, Revenues Up Y/Y, Shares Fall
- Neutral Sentiment: Despite the beat, Adobe signaled a strategic shift toward freemium AI products and prioritizing user growth over immediate monetization, which adds uncertainty around near-term ARR growth. ADBE Q2 Earnings Call Centers on Freemium AI Push, Raised Outlook
- Negative Sentiment: Investors were rattled by the sudden departure of CFO Dan Durn, which adds to leadership uncertainty while Adobe is also in the middle of a CEO succession process. Adobe raises annual revenue forecast, CFO to exit
- Negative Sentiment: Wall Street reacted with multiple price-target cuts and downgrades, reflecting concerns that Adobe’s core growth may be decelerating and that AI monetization is still not proven. Leadership Exits, Decelerating Core Growth Cloud Adobe’s Earnings Beat
Analyst Ratings Changes
Several research analysts have commented on the stock. Wolfe Research lowered shares of Adobe from an “outperform” rating to a “peer perform” rating in a research note on Friday. DA Davidson dropped their price target on shares of Adobe from $300.00 to $250.00 and set a “buy” rating for the company in a research note on Friday. Robert W. Baird cut their price target on shares of Adobe from $270.00 to $230.00 and set a “neutral” rating on the stock in a report on Friday. Stifel Nicolaus reissued a “hold” rating and issued a $200.00 price objective (down from $350.00) on shares of Adobe in a research report on Friday. Finally, Deutsche Bank Aktiengesellschaft reissued a “hold” rating on shares of Adobe in a research note on Friday, March 13th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, twenty have assigned a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $278.16.
Read Our Latest Analysis on ADBE
Insider Transactions at Adobe
In related news, CEO Shantanu Narayen sold 75,000 shares of the stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $243.54, for a total value of $18,265,500.00. Following the transaction, the chief executive officer owned 359,538 shares of the company’s stock, valued at $87,561,884.52. This represents a 17.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Jillian Forusz sold 755 shares of the firm’s stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $246.25, for a total value of $185,918.75. Following the transaction, the chief accounting officer owned 3,521 shares in the company, valued at $867,046.25. The trade was a 17.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 77,091 shares of company stock valued at $18,782,773. 0.20% of the stock is currently owned by company insiders.
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.
Read More
- Five stocks we like better than Adobe
- SpaceX Rings the Bell and Shatters Every Record
- Adobe Stock Just Got Cheaper—Is Wall Street Missing the Story?
- 3 Dividend Stocks Under $50 That Pay You to Wait Out Inflation
- The 127-Gigawatt Problem: Why AI Needs Its Own Power
Want to see what other hedge funds are holding ADBE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Adobe Inc. (NASDAQ:ADBE – Free Report).
Receive News & Ratings for Adobe Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Adobe and related companies with MarketBeat.com's FREE daily email newsletter.
