10,370 Shares in Adobe Inc. $ADBE Acquired by Drystone LLC

Key Points

• Drystone LLC initiated a new position in Adobe during the first quarter, buying 10,370 shares worth about $2.52 million. Adobe now represents roughly 2.3% of the fund’s portfolio and is its 15th-largest holding.
• Adobe also saw notable insider activity, including Director David A. Ricks buying 10,000 shares, while CAO Jillian Forusz sold 755 shares. Over the last three months, insiders have sold 77,091 shares worth about $18.8 million.
• The company recently reported strong quarterly results, with EPS of $5.96 and revenue of $6.62 billion, both above analyst expectations. Adobe also approved a $25 billion share repurchase program, even as analysts currently rate the stock a consensus “Hold.”

Drystone LLC acquired a new stake in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund acquired 10,370 shares of the software company's stock, valued at approximately $2,521,000. Adobe makes up about 2.3% of Drystone LLC's investment portfolio, making the stock its 15th largest position.

Other large investors have also recently added to or reduced their stakes in the company. Brighton Jones LLC raised its stake in shares of Adobe by 2.1% during the 4th quarter. Brighton Jones LLC now owns 8,068 shares of the software company's stock worth $3,588,000 after purchasing an additional 167 shares in the last quarter. Sivia Capital Partners LLC grew its stake in shares of Adobe by 25.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company's stock valued at $926,000 after buying an additional 486 shares in the last quarter. United Bank increased its holdings in Adobe by 12.8% in the second quarter. United Bank now owns 3,773 shares of the software company's stock worth $1,460,000 after buying an additional 428 shares during the last quarter. Schnieders Capital Management LLC. increased its holdings in Adobe by 7.8% in the second quarter. Schnieders Capital Management LLC. now owns 2,630 shares of the software company's stock worth $1,017,000 after buying an additional 190 shares during the last quarter. Finally, Gamco Investors INC. ET AL raised its position in Adobe by 190.6% during the second quarter. Gamco Investors INC. ET AL now owns 2,764 shares of the software company's stock valued at $1,069,000 after acquiring an additional 1,813 shares in the last quarter. Institutional investors and hedge funds own 81.79% of the company's stock.

Insider Activity

In other Adobe news, Director David A. Ricks acquired 10,000 shares of the company's stock in a transaction dated Thursday, June 25th. The shares were acquired at an average cost of $194.51 per share, for a total transaction of $1,945,100.00. Following the completion of the purchase, the director owned 17,655 shares of the company's stock, valued at approximately $3,434,074.05. This trade represents a 130.63% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CAO Jillian Forusz sold 755 shares of the business's stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $246.25, for a total value of $185,918.75. Following the transaction, the chief accounting officer directly owned 3,521 shares of the company's stock, valued at $867,046.25. This represents a 17.66% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 77,091 shares of company stock valued at $18,782,773 over the last three months. 0.20% of the stock is currently owned by insiders.

Adobe Stock Up 0.8%

Shares of Adobe stock opened at $237.25 on Friday. Adobe Inc. has a 12-month low of $190.12 and a 12-month high of $376.16. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 0.42. The stock has a 50 day moving average price of $228.58 and a two-hundred day moving average price of $256.19. The stock has a market capitalization of $94.31 billion, a P/E ratio of 13.57, a PEG ratio of 0.80 and a beta of 1.43.

Adobe (NASDAQ:ADBE - Get Free Report) last released its quarterly earnings results on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, beating analysts' consensus estimates of $5.82 by $0.14. The company 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 company's quarterly revenue was up 12.7% compared to the same quarter last year. During the same quarter last year, the firm posted $5.06 earnings per share. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. Equities analysts expect that Adobe Inc. will post 19.81 earnings per share for the current year.

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

Analyst Upgrades and Downgrades

A number of analysts have issued reports on the stock. Stifel Nicolaus reiterated a "hold" rating and issued a $200.00 target price (down from $350.00) on shares of Adobe in a research note on Friday, June 12th. Dbs Bank lowered shares of Adobe from a "moderate buy" rating to a "hold" rating in a research note on Tuesday, May 19th. Wall Street Zen downgraded shares of Adobe from a "buy" rating to a "hold" rating in a report on Saturday, July 4th. Freedom Capital lowered shares of Adobe from a "strong-buy" rating to a "hold" rating in a research note on Friday, June 12th. Finally, Robert W. Baird decreased their price objective on shares of Adobe from $270.00 to $230.00 and set a "neutral" rating for the company in a report on Friday, June 12th. Six investment analysts have rated the stock with a Buy rating, twenty-two have assigned a Hold rating and five have given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $275.00.

Key Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Multiple reports highlight Adobe’s attractive valuation, with some investors viewing the selloff as creating a buying opportunity and even raising the possibility that the company could become a takeover target. Is Adobe (ADBE) a Takeover Target? Rumors Are Swirling
• Positive Sentiment: Adobe was compared favorably with Autodesk on revenue trends, with Adobe showing larger scale and consistent quarter-over-quarter growth over the last eight quarters, which supports the case for durable business momentum. Adobe vs. Autodesk: What Revenue Trends Reveal About These Software Stocks
• Positive Sentiment: Several pieces frame Adobe as a potential beneficiary of the market’s reassessment of software stocks, arguing that AI is pressuring recurring-revenue models but that strong companies like Adobe are adapting and may emerge as relative winners. How to Find the Bargains in the Software Stock Wreckage
• Positive Sentiment: Commentary on Adobe’s “compelling valuation” and “generational buying opportunity” suggests investors are increasingly seeing the stock as undervalued despite intensifying competition. Adobe: Compelling Valuation Even Amid Intensifying Competition
• Positive Sentiment: Broader software-sector analysis also points to Adobe as having real competitive moats that AI may not easily replace, reinforcing confidence in the company’s long-term positioning. Alpha Buying: The Real Moats AI Can't Replace
• Neutral Sentiment: Additional coverage on e-commerce and digital media trends mentions Adobe’s AI-related efforts, including its acquisition of Rephrase.AI, but the article is more about industry innovation than a direct catalyst for the stock. E-Commerce Update - AI Transforming Digital Retail Through Innovation and Connectivity
• Negative Sentiment: One article noted that an open-source browser-based PDF toolkit can replace Adobe Acrobat, highlighting ongoing competitive pressure in one of Adobe’s core product areas. I replaced Adobe Acrobat with a 10x faster, browser-based open-source PDF toolkit

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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