Adobe (NASDAQ:ADBE) Shares Down 1.9% – Should You Sell?

Adobe Inc. (NASDAQ:ADBE) traded down 1.9% during trading on Tuesday . The stock traded as low as $288.33 and last traded at $290.37. 6,905,027 shares traded hands during mid-day trading, an increase of 38% from the average session volume of 5,005,095 shares. The stock had previously closed at $296.12.

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe rolled out new AI-powered video editing features for Premiere, which could boost Creative Cloud engagement, upsell opportunities and stickiness with pro creators. Read More.
• Positive Sentiment: Recent fundamentals remain supportive: Adobe beat Q4 estimates and raised FY26 guidance (management set FY26 EPS range), underpinning cash flow and margin expectations. Read More.
• Positive Sentiment: Some market commentators and analysts call ADBE a deep-value or “AI bargain” after the pullback, arguing the stock’s drop creates a buying opportunity if Adobe executes on AI monetization. Read More.
• Neutral Sentiment: Consensus analyst rating remains cautious-to-neutral (consensus “Hold”), signaling that Wall Street expects execution but is not uniformly convinced about upside from current levels. Read More.
• Neutral Sentiment: Industry commentary asks whether AI is structurally changing Adobe’s TAM and margins — pieces that highlight both headwinds and paths to recovery, leaving the near-term outlook mixed. Read More.
• Negative Sentiment: Consumer-focused articles promote non-subscription PDF editors as alternatives, which could pressure Acrobat retention or pricing power over time if adoption grows. Read More.
• Negative Sentiment: Reports about Apple moving into creative tools raise competitive-risk concerns — Apple’s platform reach could pose a longer-term threat to parts of Adobe’s Creative Cloud franchise. Read More.

Analyst Upgrades and Downgrades

Several research firms have commented on ADBE. Barclays reissued an “overweight” rating and issued a $415.00 price objective on shares of Adobe in a research report on Friday, December 5th. Citigroup raised their price objective on Adobe from $366.00 to $387.00 and gave the company a “neutral” rating in a research note on Wednesday, December 17th. TD Cowen decreased their price target on shares of Adobe from $420.00 to $400.00 and set a “hold” rating for the company in a research report on Thursday, December 11th. Stifel Nicolaus dropped their target price on shares of Adobe from $480.00 to $450.00 and set a “buy” rating for the company in a research report on Tuesday, December 9th. Finally, Jefferies Financial Group lowered Adobe from a “buy” rating to a “hold” rating and lowered their price objective for the company from $500.00 to $400.00 in a report on Monday, January 5th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, twelve have issued a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Adobe currently has a consensus rating of “Hold” and an average target price of $402.85.

Adobe Stock Performance

The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.00 and a current ratio of 1.00. The stock has a 50 day moving average of $334.09 and a 200 day moving average of $346.36. The stock has a market capitalization of $119.20 billion, a P/E ratio of 17.38, a P/E/G ratio of 1.17 and a beta of 1.53.

Adobe (NASDAQ:ADBE) last announced its quarterly earnings results on Wednesday, December 10th. The software company reported $5.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.40 by $0.10. The company had revenue of $6.19 billion during the quarter, compared to the consensus estimate of $6.11 billion. Adobe had a net margin of 30.00% and a return on equity of 61.28%. The company’s revenue for the quarter was up 10.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $4.81 earnings per share. Adobe has set its Q1 2026 guidance at 5.850-5.900 EPS and its FY 2026 guidance at 23.300-23.500 EPS. Equities analysts predict that Adobe Inc. will post 16.65 EPS for the current year.

Insider Buying and Selling at Adobe

In other news, CAO Jillian Forusz sold 149 shares of the business’s stock in a transaction that occurred on Friday, October 31st. The stock was sold at an average price of $337.88, for a total transaction of $50,344.12. Following the completion of the transaction, the chief accounting officer directly owned 3,426 shares in the company, valued at approximately $1,157,576.88. The trade was a 4.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 0.16% of the company’s stock.

Institutional Investors Weigh In On Adobe

Several institutional investors have recently bought and sold shares of ADBE. LSV Asset Management boosted its holdings in shares of Adobe by 350.0% in the second quarter. LSV Asset Management now owns 72 shares of the software company’s stock valued at $28,000 after acquiring an additional 56 shares in the last quarter. Measured Wealth Private Client Group LLC acquired a new position in Adobe during the third quarter worth about $26,000. Caitlin John LLC bought a new position in shares of Adobe during the 3rd quarter valued at about $28,000. Nexus Investment Management ULC bought a new stake in shares of Adobe in the 2nd quarter worth approximately $31,000. Finally, Beacon Financial Strategies CORP bought a new position in shares of Adobe in the fourth quarter valued at $28,000. Institutional investors and hedge funds own 81.79% of the company’s stock.

Adobe Company Profile

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.