Chapin Davis Inc. reduced its stake in shares of Adobe Inc. (NASDAQ:ADBE – Free Report) by 71.1% in the 3rd quarter, Holdings Channel reports. The firm owned 877 shares of the software company’s stock after selling 2,160 shares during the quarter. Chapin Davis Inc.’s holdings in Adobe were worth $210,000 at the end of the most recent quarter.
Several other hedge funds and other institutional investors have also recently bought and sold shares of ADBE. BlackRock Inc. purchased a new stake in Adobe in the 2nd quarter valued at $8,437,821,000. Arrowstreet Capital Limited Partnership boosted its position in Adobe by 9.1% during the first quarter. Arrowstreet Capital Limited Partnership now owns 6,792,275 shares of the software company’s stock worth $1,651,066,000 after purchasing an additional 563,772 shares during the period. Amundi lifted its holdings in Adobe by 11.0% during the 2nd quarter. Amundi now owns 5,242,464 shares of the software company’s stock worth $1,074,810,000 after purchasing an additional 518,362 shares in the last quarter. Primecap Management Co. CA bought a new position in shares of Adobe in the second quarter worth approximately $1,071,668,000. Finally, Invesco Ltd. boosted its stake in Adobe by 6.2% in the fourth quarter. Invesco Ltd. now owns 5,119,025 shares of the software company’s stock worth $1,791,607,000 after buying an additional 297,337 shares in the last quarter. 81.79% of the stock is owned by institutional investors.
Insider Activity
In related news, CAO Jillian Forusz sold 416 shares of the firm’s stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $264.33, for a total value 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 through this link. Also, CEO Shantanu Narayen sold 74,500 shares of the stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $251.56, for a total value of $18,741,220.00. Following the completion of the transaction, the chief executive officer owned 289,224 shares in the company, valued at approximately $72,757,189.44. The trade was a 20.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 125,416 shares of company stock worth $31,454,466 in the last three months. Insiders own 0.20% of the company’s stock.
Key Headlines Impacting Adobe
- Positive Sentiment: Technical rebound and valuation support: Adobe’s recent recovery appears to reflect bargain hunting and technical buying after a steep selloff. At roughly 13.5 times earnings and with a PEG ratio below 1, some investors view the stock as inexpensive relative to its profitability and long-term franchise. What’s Going On With Adobe Stock Thursday?
- Positive Sentiment: Fundamentals remain solid: Adobe recently exceeded quarterly earnings and revenue estimates, with revenue rising 12.9% year over year. Its high margins, strong return on equity and cash-generating business provide support for the shares despite slower-growth concerns.
- Positive Sentiment: NHL partnership expands visibility: Adobe became the NHL’s official Creative, Marketing and AI Partner, giving its tools and Firefly platform exposure to a global audience and potentially supporting customer engagement. Adobe Joins the NHL
- Neutral Sentiment: Immigration-program suspension: The U.S. Labor Department suspended Adobe from the PERM green-card program while it reviews alleged visa-system abuse. The move could complicate hiring and increase regulatory or reputational risk, although investors initially treated Adobe more favorably than Microsoft. U.S. Suspends Microsoft and Adobe From Green-Card Labor Program
- Neutral Sentiment: Short-interest data appears inconsistent: The report lists October short interest at zero shares and a zero-day short-interest ratio while describing a significant increase, suggesting a possible data error rather than a reliable trading signal.
- Negative Sentiment: AI-generated open-source clones increase competitive fears: A developer reportedly used AI to create free, open-source alternatives to Adobe Creative Cloud applications. Although the projects’ commercial impact is uncertain, they reinforce concerns that AI could weaken Adobe’s pricing power and subscription model. Software Is Over: Bold AI Developer Takes Aim at Adobe
- Negative Sentiment: Subscription-growth worries persist: Analysts remain concerned about weaker new-subscription sales and the possibility of slower growth compressing Adobe’s valuation multiple. The stock has significantly underperformed the broader market over the past year.
Analyst Upgrades and Downgrades
A number of analysts have recently weighed in on the stock. Stifel Nicolaus upped their target price on shares of Adobe from $200.00 to $225.00 and gave the stock a “hold” rating in a research report on Wednesday, September 9th. Weiss Ratings raised shares of Adobe from a “sell (d)” rating to a “sell (d+)” rating in a report on Tuesday, September 1st. Wells Fargo & Company raised their price target on shares of Adobe from $250.00 to $270.00 and gave the company an “overweight” rating in a research note on Friday, September 11th. DA Davidson upped their price target on Adobe from $250.00 to $290.00 and gave the company a “buy” rating in a research note on Monday, September 14th. Finally, BNP Paribas Exane reduced their price target on Adobe from $265.00 to $225.00 and set a “neutral” rating on the stock in a research report on Friday, June 12th. Eleven research analysts have rated the stock with a Buy rating, nineteen have issued a Hold rating and six have given a Sell rating to the stock. Based on data from MarketBeat, Adobe currently has a consensus rating of “Hold” and a consensus price target of $286.68.
Read Our Latest Stock Report on Adobe
Adobe Trading Up 0.5%
ADBE opened at $242.27 on Friday. The company has a debt-to-equity ratio of 0.41, a current ratio of 0.77 and a quick ratio of 0.77. The firm’s fifty day moving average price is $258.20 and its 200 day moving average price is $242.88. Adobe Inc. has a 12-month low of $190.12 and a 12-month high of $363.70. The stock has a market capitalization of $94.29 billion, a PE ratio of 13.52, a P/E/G ratio of 0.84 and a beta of 1.42.
Adobe (NASDAQ:ADBE – Get Free Report) last issued its quarterly earnings results on Thursday, September 10th. The software company reported $6.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.08 by $0.05. The company had revenue of $6.76 billion for the quarter, compared to analysts’ expectations of $6.69 billion. Adobe had a return on equity of 65.65% and a net margin of 28.05%. The firm’s revenue for the quarter was up 12.9% on a year-over-year basis. During the same period last year, the firm earned $5.31 EPS. Adobe has set its Q4 2026 guidance at 6.300-6.350 EPS and its FY 2026 guidance at 24.450-24.500 EPS. As a group, research analysts expect that Adobe Inc. will post 20.01 EPS for the current fiscal year.
Adobe Company Profile
Adobe Inc (NASDAQ: ADBE) is a global software company that develops tools for creating, managing, delivering and analyzing digital content. Its products serve creative professionals, marketers, enterprises, students and individual consumers across a broad range of industries and geographies.
Adobe’s Creative Cloud portfolio includes applications such as Photoshop, Illustrator, Premiere Pro, InDesign and Adobe Express for graphic design, photography, video, illustration and digital content creation.
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