Adobe (NASDAQ:ADBE) Shares Down 4.8% - Time to Sell?

Key Points

• Shares fell 4.8% intraday to about $333, with trading volume up ~34% (5.62M shares vs a 4.20M average), following the prior close of $349.99.
• Analysts have trimmed price targets recently (examples: Oppenheimer, Morgan Stanley, Mizuho), and the consensus rating is "Hold" with an average price target of $417.93.
• Adobe beat quarterly expectations—EPS $5.50 vs $5.40 expected and revenue $6.19B vs $6.11B—and issued Q1 2026 guidance of $5.85–5.90 EPS and FY26 guidance of $23.30–23.50 EPS, while maintaining strong margins and ROE.

Adobe Inc. (NASDAQ:ADBE - Get Free Report)'s stock price was down 4.8% during mid-day trading on Friday . The company traded as low as $331.64 and last traded at $333.30. Approximately 5,620,914 shares traded hands during mid-day trading, an increase of 34% from the average daily volume of 4,203,159 shares. The stock had previously closed at $349.99.

Analyst Ratings Changes

Several analysts have recently issued reports on the company. Barclays reiterated an "overweight" rating and set a $415.00 price target on shares of Adobe in a research note on Friday, December 5th. Oppenheimer decreased their target price on Adobe from $460.00 to $430.00 and set an "outperform" rating for the company in a research report on Thursday, December 11th. Mizuho dropped their price target on shares of Adobe from $410.00 to $390.00 and set an "outperform" rating on the stock in a research report on Thursday, November 20th. Morgan Stanley reduced their price objective on shares of Adobe from $450.00 to $425.00 and set an "equal weight" rating for the company in a research note on Thursday, December 11th. Finally, TD Cowen lowered their target price on shares of Adobe from $420.00 to $400.00 and set a "hold" rating on the stock in a research note on Thursday, December 11th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, eleven have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, Adobe presently has an average rating of "Hold" and a consensus price target of $417.93.

Adobe Stock Performance

The company has a current ratio of 1.00, a quick ratio of 1.02 and a debt-to-equity ratio of 0.53. The firm has a market capitalization of $139.52 billion, a price-to-earnings ratio of 19.95, a PEG ratio of 1.38 and a beta of 1.52. The stock has a fifty day moving average price of $338.69 and a 200-day moving average price of $352.14.

Adobe (NASDAQ:ADBE - Get Free Report) last announced its quarterly earnings results on Wednesday, December 10th. The software company reported $5.50 earnings per share for the quarter, beating analysts' consensus estimates of $5.40 by $0.10. The firm had revenue of $6.19 billion for the quarter, compared to analysts' expectations of $6.11 billion. Adobe had a return on equity of 61.28% and a net margin of 30.00%.The business's revenue was up 10.5% compared to the same quarter last year. During the same period in the prior year, the business 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. As a group, analysts anticipate that Adobe Inc. will post 16.65 earnings per share for the current fiscal year.

Insider Transactions at Adobe

In other Adobe news, CAO Jillian Forusz sold 149 shares of the business's stock in a transaction dated Friday, October 31st. The shares were sold at an average price of $337.88, for a total value of $50,344.12. Following the transaction, the chief accounting officer directly owned 3,426 shares in the company, valued at $1,157,576.88. The trade was a 4.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.16% of the stock is owned by corporate insiders.

Institutional Trading of Adobe

Several large investors have recently made changes to their positions in the business. LSV Asset Management lifted its position in shares of Adobe by 350.0% during the second quarter. LSV Asset Management now owns 72 shares of the software company's stock worth $28,000 after purchasing an additional 56 shares in the last quarter. Measured Wealth Private Client Group LLC acquired a new stake in shares of Adobe in the 3rd quarter valued at $26,000. Flaharty Asset Management LLC bought a new stake in shares of Adobe during the first quarter worth $29,000. Caitlin John LLC bought a new position in Adobe in the third quarter valued at about $28,000. Finally, Nexus Investment Management ULC acquired a new stake in Adobe in the second quarter worth about $31,000. Institutional investors 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.

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