Primecap Management Co. CA Takes $1.07 Billion Position in Adobe Inc. $ADBE

Posted by Geri Gentry on Aug 26th, 2026

Primecap Management Co. CA bought a new position in Adobe Inc. (NASDAQ:ADBE – Free Report) during the second quarter, according to its most recent disclosure with the SEC. The institutional investor bought 5,227,139 shares of the software company’s stock, valued at approximately $1,071,668,000. Primecap Management Co. CA owned 1.32% of Adobe at the end of the most recent reporting period.

Several other institutional investors also recently modified their holdings of ADBE. Measured Wealth Private Client Group LLC bought a new position in shares of Adobe during the third quarter valued at approximately $26,000. Western Pacific Wealth Management LP bought a new stake in shares of Adobe in the 4th quarter worth approximately $26,000. TrustBank purchased a new stake in shares of Adobe in the 4th quarter worth approximately $28,000. Lloyd Advisory Services LLC. purchased a new stake in shares of Adobe in the 4th quarter worth approximately $31,000. Finally, Sankala Group LLC bought a new position in Adobe during the 4th quarter valued at approximately $31,000. 81.79% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

ADBE has been the subject of a number of recent research reports. Morgan Stanley cut Adobe from an “equal weight” rating to an “underweight” rating and lowered their price objective for the company from $365.00 to $240.00 in a research note on Tuesday, July 21st. 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 note on Friday, June 12th. Citizens Jmp restated a “market perform” rating on shares of Adobe in a report on Friday, June 12th. HSBC raised Adobe from a “hold” rating to a “buy” rating and lifted their price target for the stock from $282.00 to $308.00 in a research report on Thursday, July 2nd. Finally, Weiss Ratings downgraded shares of Adobe from a “sell (d+)” rating to a “sell (d)” rating in a research report on Monday, August 17th. Seven research analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $270.96.

Check Out Our Latest Stock Analysis on Adobe

Trending Headlines about Adobe

Here are the key news stories impacting Adobe this week:

Positive Sentiment: Adobe’s Firefly initiative is expanding into video soundtracks, potentially increasing the commercial value of its generative-AI ecosystem and supporting future monetization. Adobe wants Firefly to handle the entire soundtrack for your videos
Positive Sentiment: Analysts and investment commentary point to Adobe’s discounted valuation, strong cash flow and accelerating AI adoption as reasons the stock could be a contrarian opportunity after a prolonged decline. Why Adobe Could Be One of 2026’s Most Contrarian Tech Bets
Positive Sentiment: Adobe recently rebounded about 16% in a month, while valuation screens suggest the shares may be below fair value following record revenue and continued business growth. Adobe Stock May Be Below Fair Value After Record Revenue
Neutral Sentiment: The latest short-interest entry reports zero shares and an unusable percentage change, indicating no reliable evidence of a meaningful shift in bearish positioning.
Neutral Sentiment: Adobe’s latest reported quarter showed revenue growth and earnings above consensus, with management maintaining fiscal 2026 guidance; however, those results are not new and appear largely reflected in the current valuation.
Negative Sentiment: Commentary remains cautious because Adobe faces intense competition in generative AI and must sustain heavy AI investment, leading one analysis to rate the stock a “hold” despite its valuation appeal. Adobe Rises 16% in a Month: Should You Buy, Sell or Hold the Stock?
Negative Sentiment: Some investors question whether Adobe is losing its competitive edge even as AI adoption grows, increasing pressure on the company to convert product usage into durable revenue. Is Adobe Losing Its Edge Despite Strong AI Adoption?
Negative Sentiment: A broader market call for a rotation away from technology stocks may be weighing on software names, including Adobe, regardless of its company-specific fundamentals. Jim Cramer’s Call on the Market’s Next Big Rotation

Insiders Place Their Bets

In related news, CAO Jillian Forusz sold 416 shares of the stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $264.33, for a total transaction of $109,961.28. Following the sale, the chief accounting officer directly owned 3,824 shares of the company’s stock, valued at $1,010,797.92. This trade represents a 9.81% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director David A. Ricks acquired 10,000 shares of Adobe stock in a transaction that occurred on Thursday, June 25th. The stock was acquired at an average price of $194.51 per share, with a total value of $1,945,100.00. Following the completion of the acquisition, the director directly owned 17,655 shares in the company, valued at $3,434,074.05. This represents a 130.63% increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 0.20% of the company’s stock.

Adobe Price Performance

Shares of NASDAQ ADBE opened at $273.92 on Wednesday. The firm has a market cap of $108.88 billion, a P/E ratio of 15.67, a PEG ratio of 0.93 and a beta of 1.40. Adobe Inc. has a twelve month low of $190.12 and a twelve month high of $370.86. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 0.42. The company has a 50 day moving average of $235.34 and a 200 day moving average of $244.64.

Adobe (NASDAQ:ADBE – Get Free Report) last issued its earnings results on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, beating the consensus estimate of $5.82 by $0.14. The business had revenue of $6.62 billion for the quarter, compared to the consensus estimate of $6.45 billion. Adobe had a return on equity of 65.11% and a net margin of 28.69%.The company’s revenue was up 12.7% compared to the same quarter last year. During the same period last year, the business posted $5.06 EPS. 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, research analysts expect that Adobe Inc. will post 19.81 EPS for the current fiscal year.

Adobe Company Profile

(Free Report)

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.