Equity Investment Corp bought a new stake in Adobe Inc. (NASDAQ:ADBE – Free Report) during the second quarter, Holdings Channel reports. The institutional investor bought 329,000 shares of the software company’s stock, valued at approximately $67,452,000.
Several other institutional investors have also made changes to their positions in ADBE. BlackRock Inc. acquired a new position in Adobe in the 2nd quarter valued at approximately $8,437,821,000. State Street Corp boosted its stake in shares of Adobe by 1.7% during the 3rd quarter. State Street Corp now owns 20,632,009 shares of the software company’s stock valued at $7,277,941,000 after buying an additional 352,448 shares during the period. Geode Capital Management LLC grew its holdings in shares of Adobe by 3.7% during the 4th quarter. Geode Capital Management LLC now owns 11,531,678 shares of the software company’s stock valued at $4,027,170,000 after acquiring an additional 414,049 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its stake in shares of Adobe by 9.1% in 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 acquiring an additional 563,772 shares during the last quarter. Finally, Norges Bank acquired a new position in shares of Adobe in the fourth quarter worth $2,275,165,000. 81.79% of the stock is currently owned by institutional investors and hedge funds.
Key Adobe News
Here are the key news stories impacting Adobe this week:
- Positive Sentiment: Adobe’s shift toward a freemium model for AI-powered tools— including holding off on price increases to expand its user base—could accelerate adoption and support its goal of double-digit annual recurring-revenue growth. Recent share-price momentum has also prompted renewed debate over whether the stock is below fair value. Is Adobe Below Fair Value On Its Freemium AI Push?
- Positive Sentiment: Investor rotation out of semiconductor stocks and into beaten-down technology names helped lift Adobe, along with Netflix and Salesforce. This suggests part of the move reflected broader sector positioning rather than a new company-specific announcement. Netflix, Salesforce, and Adobe Rally
- Positive Sentiment: In a comparison with DocuSign, Motley Fool analysts favored Adobe, reinforcing the view that Adobe remains a profitable, established software leader with an attractive valuation and meaningful AI opportunity. Docusign: A Cheap Turnaround or an AI Disruption Risk?
- Neutral Sentiment: Analyst coverage describes Adobe as being in a holding pattern while it awaits new management and evaluates the freemium transition, limiting near-term conviction despite the potential for wider AI adoption. Adobe in Holding Pattern
- Negative Sentiment: Some investors remain concerned that even successful AI execution may not quickly repair Adobe’s damaged market narrative. The company must prove that freemium tools can convert users into durable, profitable revenue growth. Adobe: Even If It Wins With AI, the Market May Take Years to Forgive
Adobe Trading Up 3.6%
Adobe (NASDAQ:ADBE – Get Free Report) last issued its earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share 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 analyst estimates of $6.45 billion. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The firm’s revenue was up 12.7% on a year-over-year basis. During the same period in the previous year, the business earned $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. On average, equities research analysts forecast that Adobe Inc. will post 19.81 earnings per share for the current fiscal year.
Adobe announced that its Board of Directors has initiated a share repurchase program on Tuesday, April 21st that permits the company to buyback $25.00 billion in shares. This buyback authorization permits the software company to buy up to 24.9% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s leadership believes its stock is undervalued.
Insider Activity at Adobe
In related news, Director David A. Ricks purchased 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 25th. The shares were acquired at an average price of $194.51 per share, with a total value of $1,945,100.00. Following the purchase, the director directly owned 17,655 shares in the company, valued at $3,434,074.05. This represents a 130.63% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CAO Jillian Forusz sold 416 shares of the company’s stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $264.33, for a total value of $109,961.28. Following the completion of the sale, the chief accounting officer owned 3,824 shares in the company, valued at $1,010,797.92. This trade represents a 9.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.20% of the company’s stock.
Wall Street Analyst Weigh In
A number of analysts recently issued reports on the company. Evercore set a $225.00 price objective on Adobe and gave the company an “in-line” rating in a research report on Friday, June 12th. Wall Street Zen lowered Adobe from a “buy” rating to a “hold” rating in a research report on Saturday, July 4th. Wolfe Research lowered Adobe from an “outperform” rating to a “peer perform” rating in a report on Friday, June 12th. TD Cowen lowered their price target on Adobe from $310.00 to $285.00 and set a “hold” rating for the company in a research note on Monday, June 8th. Finally, Freedom Capital downgraded Adobe from a “strong-buy” rating to a “hold” rating in a report on Friday, June 12th. Seven investment 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.com, the stock has a consensus rating of “Hold” and an average price target of $269.81.
Check Out Our Latest Stock Analysis on ADBE
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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