Adobe (NASDAQ:ADBE) Coverage Initiated at BTIG Research

Key Points

• BTIG initiated coverage on Adobe with a neutral rating; the stock's consensus among analysts is a Hold with an average price target of $343.88 amid several recent target cuts.
• Adobe beat Q1 EPS and revenue (revenue +12% year-over-year) and set FY2026 EPS guidance of 23.30–23.50 and Q2 guidance of 5.80–5.85, yet shares are trading near a 12‑month low around $225; the company has a market cap of about $91.1B and a P/E of 13.12.
• CFO Daniel Durn sold 1,646 shares recently, while institutional ownership remains high at 81.79% with large stakes added by Norges Bank, Arrowstreet and Dodge & Cox.

Analysts at BTIG Research initiated coverage on shares of Adobe (NASDAQ:ADBE - Get Free Report) in a note issued to investors on Monday,Benzinga reports. The brokerage set a "neutral" rating on the software company's stock.

A number of other research analysts have also recently issued reports on the stock. Jefferies Financial Group cut their target price on shares of Adobe from $400.00 to $290.00 and set a "hold" rating for the company in a research note on Monday, February 23rd. William Blair cut shares of Adobe from an "outperform" rating to a "market perform" rating in a research note on Thursday, March 26th. Argus reiterated a "hold" rating on shares of Adobe in a research note on Monday, March 16th. JPMorgan Chase & Co. cut their target price on shares of Adobe from $520.00 to $420.00 and set an "overweight" rating for the company in a research note on Friday, March 13th. Finally, Wells Fargo & Company cut their target price on shares of Adobe from $420.00 to $405.00 and set an "overweight" rating for the company in a research note on Monday, March 9th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, fifteen have given a Hold rating and five have given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $343.88.

Adobe Price Performance

Shares of ADBE opened at $225.35 on Monday. Adobe has a 12 month low of $224.13 and a 12 month high of $422.95. The company has a 50-day moving average price of $256.83 and a two-hundred day moving average price of $306.88. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.47. The stock has a market cap of $91.09 billion, a price-to-earnings ratio of 13.12, a P/E/G ratio of 0.88 and a beta of 1.52.

Adobe (NASDAQ:ADBE - Get Free Report) last posted its earnings results on Thursday, March 12th. The software company reported $6.06 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.87 by $0.19. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The company had revenue of $6.40 billion during the quarter, compared to analysts' expectations of $6.28 billion. During the same quarter in the previous year, the company posted $5.08 earnings per share. Adobe's quarterly revenue was up 12.0% compared to the same quarter last year. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. Equities analysts predict that Adobe will post 16.65 EPS for the current fiscal year.

Insider Buying and Selling at Adobe

In related news, CFO Daniel Durn sold 1,646 shares of the firm's stock in a transaction that occurred on Tuesday, January 27th. The shares were sold at an average price of $294.85, for a total value of $485,323.10. Following the completion of the sale, the chief financial officer owned 41,995 shares of the company's stock, valued at $12,382,225.75. This trade represents a 3.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 0.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Adobe

A number of hedge funds and other institutional investors have recently modified their holdings of ADBE. Norges Bank acquired a new stake in shares of Adobe in the fourth quarter valued at approximately $2,275,165,000. Arrowstreet Capital Limited Partnership grew its holdings in Adobe by 53.3% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company's stock worth $1,981,448,000 after acquiring an additional 1,952,994 shares during the period. Dodge & Cox grew its holdings in Adobe by 8,006.6% during the 3rd quarter. Dodge & Cox now owns 1,593,506 shares of the software company's stock worth $562,109,000 after acquiring an additional 1,573,849 shares during the period. AQR Capital Management LLC grew its holdings in Adobe by 55.2% during the 3rd quarter. AQR Capital Management LLC now owns 2,587,399 shares of the software company's stock worth $912,705,000 after acquiring an additional 920,353 shares during the period. Finally, Amundi grew its holdings in Adobe by 17.9% during the 3rd quarter. Amundi now owns 4,888,283 shares of the software company's stock worth $1,711,583,000 after acquiring an additional 742,646 shares during the period. Institutional investors and hedge funds own 81.79% of the company's stock.

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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