Platinum Investment Management Ltd. decreased its stake in shares of Adobe Inc. (NASDAQ:ADBE – Free Report) by 92.8% during the 4th quarter, Holdings Channel reports. The institutional investor owned 13,846 shares of the software company’s stock after selling 177,174 shares during the period. Platinum Investment Management Ltd.’s holdings in Adobe were worth $4,846,000 as of its most recent SEC filing.
Several other hedge funds also recently modified their holdings of ADBE. Measured Wealth Private Client Group LLC purchased a new position in shares of Adobe during the third quarter valued at approximately $26,000. Western Pacific Wealth Management LP purchased a new position in shares of Adobe during the fourth quarter valued at approximately $26,000. KERR FINANCIAL PLANNING Corp purchased a new position in shares of Adobe during the third quarter valued at approximately $27,000. Caitlin John LLC purchased a new position in shares of Adobe during the third quarter valued at approximately $28,000. Finally, Beacon Financial Strategies CORP purchased a new position in shares of Adobe during the fourth quarter valued at approximately $28,000. Hedge funds and other institutional investors own 81.79% of the company’s stock.
Analyst Upgrades and Downgrades
Several research analysts recently issued reports on ADBE shares. Evercore set a $225.00 target price on Adobe and gave the company an “in-line” rating in a research report on Friday. Jefferies Financial Group cut their target price on Adobe from $290.00 to $230.00 and set a “hold” rating on the stock in a research report on Friday. BMO Capital Markets cut their target price on Adobe from $285.00 to $230.00 and set a “market perform” rating on the stock in a research report on Friday. JPMorgan Chase & Co. cut their target price on Adobe from $420.00 to $340.00 and set an “overweight” rating on the stock in a research report on Friday. Finally, Mizuho dropped their price target on Adobe from $270.00 to $245.00 and set a “neutral” rating on the stock in a report on Friday. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, twenty have issued a Hold rating and five have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $278.16.
Adobe News Summary
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
Adobe Stock Performance
Shares of Adobe stock opened at $204.02 on Friday. The business’s fifty day simple moving average is $244.54 and its 200 day simple moving average is $278.61. The firm has a market capitalization of $82.46 billion, a P/E ratio of 11.67, a price-to-earnings-growth 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. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.47.
Adobe (NASDAQ:ADBE – Get Free Report) last issued its quarterly earnings results on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, topping analysts’ consensus estimates of $5.82 by $0.14. The business had revenue of $6.62 billion for the quarter, compared to analyst estimates of $6.45 billion. Adobe had a return on equity of 64.99% and a net margin of 28.69%.Adobe’s quarterly revenue was up 12.7% compared to the same quarter last year. During the same period last year, the company posted $5.06 earnings per share. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. As a group, analysts anticipate that Adobe Inc. will post 19.14 EPS for the current year.
Adobe announced that its Board of Directors has initiated a stock buyback plan on Tuesday, April 21st that permits the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization permits the software company to purchase up to 24.9% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board of directors believes its stock is undervalued.
Insider Buying and Selling
In related news, CFO Daniel Durn sold 1,336 shares of Adobe stock in a transaction on Monday, April 20th. The stock was sold at an average price of $248.02, for a total transaction of $331,354.72. Following the sale, the chief financial officer directly owned 42,833 shares in the company, valued at approximately $10,623,440.66. This trade represents a 3.02% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Jillian Forusz sold 755 shares of Adobe 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 sale, the chief accounting officer owned 3,521 shares in the company, valued at $867,046.25. This trade represents 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 worth $18,782,773. 0.20% of the stock is 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.
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