Adobe Inc. (NASDAQ:ADBE) Given Consensus Rating of "Hold" by Analysts

Key Points

• Adobe has a consensus “Hold” rating from 34 analysts: 21 recommend holding, seven recommend buying and six recommend selling. The average 12-month price target is approximately $271.30.
• Adobe’s latest quarterly results exceeded expectations, with adjusted EPS of $5.96 and revenue of $6.62 billion, up 12.7% year over year. The stock opened at $260.24, while its 12-month trading range is $190.12 to $370.86.
• Adobe is emphasizing AI integration, including a ChatGPT app that brings together roughly 70 creative and productivity tools, while also authorizing a $25 billion share-repurchase program. However, analysts remain divided over whether AI-native competitors could pressure pricing and growth.

Adobe Inc. (NASDAQ:ADBE - Get Free Report) has been given a consensus rating of "Hold" by the thirty-four brokerages that are covering the company, Marketbeat reports. Six equities research analysts have rated the stock with a sell rating, twenty-one have issued a hold rating and seven have given a buy rating to the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $271.2963.

Several equities research analysts have commented on the stock. Freedom Capital lowered shares of Adobe from a "strong-buy" rating to a "hold" rating in a research note on Friday, June 12th. Bank of America restated an "underperform" rating and issued a $190.00 price objective on shares of Adobe in a research note on Tuesday, July 7th. KeyCorp cut their target price on shares of Adobe from $235.00 to $195.00 and set an "underweight" rating for the company in a research report on Friday, June 12th. Royal Bank Of Canada reduced their target price on shares of Adobe from $350.00 to $285.00 and set an "outperform" rating for the company in a research note on Monday, June 8th. Finally, Robert W. Baird lowered their price target on shares of Adobe from $270.00 to $230.00 and set a "neutral" rating on the stock in a research report on Friday, June 12th.

Insider Buying and Selling

In other Adobe news, Director David A. Ricks bought 10,000 shares of the stock in a transaction 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 acquisition, the director directly owned 17,655 shares of the company's stock, valued at $3,434,074.05. The trade was a 130.63% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, 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 value of $109,961.28. Following the sale, the chief accounting officer owned 3,824 shares in the company, valued at approximately $1,010,797.92. This represents a 9.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Willis Investment Counsel raised its position in Adobe by 138.9% during the 4th quarter. Willis Investment Counsel now owns 40,715 shares of the software company's stock valued at $14,250,000 after purchasing an additional 23,671 shares during the last quarter. Nicholas Company Inc. grew its position in shares of Adobe by 7.6% in the 4th quarter. Nicholas Company Inc. now owns 174,626 shares of the software company's stock worth $61,117,000 after buying an additional 12,400 shares during the last quarter. Teacher Retirement System of Texas grew its position in shares of Adobe by 13.4% in the 4th quarter. Teacher Retirement System of Texas now owns 215,611 shares of the software company's stock worth $75,462,000 after buying an additional 25,435 shares during the last quarter. Wealthfront Advisers LLC increased its stake in shares of Adobe by 13.2% during the fourth quarter. Wealthfront Advisers LLC now owns 55,179 shares of the software company's stock valued at $19,312,000 after buying an additional 6,426 shares during the period. Finally, True North Advisors LLC raised its holdings in shares of Adobe by 301.1% during the fourth quarter. True North Advisors LLC now owns 6,493 shares of the software company's stock valued at $2,273,000 after acquiring an additional 4,874 shares in the last quarter. Hedge funds and other institutional investors own 81.79% of the company's stock.

Adobe Trading Up 0.4%

NASDAQ ADBE opened at $260.24 on Friday. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 0.42. The business has a fifty day simple moving average of $227.96 and a 200 day simple moving average of $246.97. Adobe has a 12 month low of $190.12 and a 12 month high of $370.86. The firm has a market capitalization of $103.45 billion, a P/E ratio of 14.89, a PEG ratio of 0.87 and a beta of 1.40.

Adobe (NASDAQ:ADBE - Get Free Report) last posted its earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.82 by $0.14. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The firm had revenue of $6.62 billion during the quarter, compared to analyst estimates of $6.45 billion. During the same quarter in the prior year, the business posted $5.06 EPS. The business's revenue was up 12.7% compared to the same quarter last year. 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, analysts predict that Adobe will post 19.81 EPS for the current fiscal year.

Adobe declared that its board has approved a stock buyback program on Tuesday, April 21st that allows the company to repurchase $25.00 billion in shares. This repurchase authorization allows the software company to purchase up to 24.9% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's management believes its shares are undervalued.

Key Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe launched a ChatGPT app that brings together approximately 70 creative and productivity tools, including capabilities from Photoshop and Lightroom for image editing, as well as video, audio and other content-creation functions. The integration could make Adobe’s products easier to access, increase user engagement and support future AI monetization. Adobe Debuts ChatGPT App Featuring All Its Programs
• Positive Sentiment: The new ChatGPT functionality allows users to combine Adobe applications without repeatedly switching between them. This strengthens Adobe’s ecosystem and could help defend its market position as customers increasingly use conversational interfaces to edit and create content. Stop jumping between Adobe apps with this new ChatGPT plugin
• Positive Sentiment: Adobe remains viewed as a potential value opportunity after a major sell-off. The latest quarter still delivered double-digit revenue growth, while management continues adding AI features to established products. At a forward earnings multiple near 10, even a partial valuation recovery could provide significant upside, although analyst opinions remain divided. Buy the Dip or Run: 3 Software Stocks Down 50% Face Their Moment of Truth
• Neutral Sentiment: Akamai Technologies reported strong cloud-infrastructure and cybersecurity demand, with Adobe among its customers. The results offer a constructive read-through for enterprise technology spending, but they do not directly change Adobe’s earnings outlook. Akamai beats quarterly estimates on cloud infrastructure demand
• Negative Sentiment: The principal risk is that AI-native tools could eventually pressure Adobe’s pricing power and slow growth in its content-creation business. Recent analyst downgrades and the wide range of price targets show that investors remain uncertain whether Adobe’s AI investments will create enough growth to overcome this competitive threat.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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