Adobe Inc. $ADBE Position Lessened by DAVENPORT & Co LLC

Key Points

• DAVENPORT & Co LLC trimmed its stake in Adobe by 32.2% in Q4, selling 112,187 shares and leaving 236,316 shares valued at about $82.9 million.
• Adobe beat Q1 estimates (EPS $6.06 vs. $5.87; revenue $6.40B, +12% y/y) and is running a $25B buyback, but an announced CEO transition, analyst downgrades and weaker sentiment have pressured the stock (down ~3.5%) and left a consensus "Hold" rating.

DAVENPORT & Co LLC decreased its position in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 32.2% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 236,316 shares of the software company's stock after selling 112,187 shares during the period. DAVENPORT & Co LLC owned 0.06% of Adobe worth $82,855,000 at the end of the most recent reporting period.

Other hedge funds also recently bought and sold shares of the company. Measured Wealth Private Client Group LLC acquired a new stake in shares of Adobe during the 3rd quarter valued at about $26,000. KERR FINANCIAL PLANNING Corp bought a new stake in shares of Adobe in the 3rd quarter valued at approximately $27,000. Caitlin John LLC acquired a new position in Adobe in the third quarter worth approximately $28,000. Chesapeake Asset Management LLC bought a new position in Adobe during the fourth quarter valued at approximately $31,000. Finally, Total Investment Management Inc. acquired a new stake in Adobe in the second quarter valued at approximately $35,000. 81.79% of the stock is owned by institutional investors and hedge funds.

Adobe Stock Down 3.5%

NASDAQ ADBE opened at $238.87 on Wednesday. Adobe Inc. has a twelve month low of $237.38 and a twelve month high of $422.95. The stock has a market cap of $98.06 billion, a PE ratio of 13.91, a PEG ratio of 0.97 and a beta of 1.53. The firm has a 50-day simple moving average of $272.21 and a 200 day simple moving average of $317.68. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.00 and a current ratio of 0.91.

Adobe (NASDAQ:ADBE - Get Free Report) last issued its quarterly earnings results on Thursday, March 12th. The software company reported $6.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.87 by $0.19. Adobe had a return on equity of 64.48% and a net margin of 29.48%.The firm had revenue of $6.40 billion for the quarter, compared to analyst estimates of $6.28 billion. During the same period in the previous year, the company posted $5.08 earnings per share. The company'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. On average, research analysts forecast that Adobe Inc. will post 16.65 EPS for the current year.

Key Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe is promoting Firefly aggressively (50% off), which could accelerate adoption and monetization of its AI creative tools—supportive for revenue and ARPU if conversion follows. Create professional designs for less with 50% off Adobe Firefly
• Positive Sentiment: Adobe expanded Firefly with custom AI models and conversational design tools—product enhancements that support differentiation vs. free/competing AI generators and could boost enterprise uptake. Adobe Expands Firefly With Custom AI Models & Conversational Design Tools
• Positive Sentiment: Fundamentals remain solid: Adobe’s Q1 revenue and EPS beat expectations and management is running a $25B buyback program financed by strong free cash flow—both support per‑share metrics over time. Adobe (ADBE) Reports Strong Earnings Despite Leadership Transition Concern
• Positive Sentiment: Zacks research pieces highlight Adobe as a strong momentum/growth stock, which may attract tactical buyers looking for AI-exposure at lower multiples. Here's Why Adobe Systems (ADBE) is a Strong Momentum Stock
• Positive Sentiment: Social chatter notes large buyback and reports of a prominent investor taking a long position — these narratives can support a valuation floor and attract value buyers. Adobe Stock (ADBE) Opinions on Earnings and CEO Transition
• Neutral Sentiment: NeutronX hired a former Adobe enterprise architect—normal industry hiring/poaching that signals Adobe talent mobility but has limited direct impact on near‑term financials. NeutronX Appoints Former Adobe Enterprise Architect
• Neutral Sentiment: Multiple short‑interest reports in feeds show zero/share anomalies and inconsistent days‑to‑cover figures—likely data errors rather than meaningful new short pressure.
• Negative Sentiment: The announced CEO transition remains the dominant negative catalyst: investors are uncertain about succession and execution risks, which has pressured the stock despite the earnings beat. Adobe slides as investors digest CEO transition and post-earnings analyst resets
• Negative Sentiment: Analyst downgrades and price‑target cuts (e.g., Barclays to Equal Weight) after earnings and guidance resets are weighing on sentiment and reducing buy‑side conviction. Barclays Downgrades Adobe Inc. (ADBE) Stock to Equal Weight
• Negative Sentiment: Broader software‑sector weakness tied to new browser/local AI tools (e.g., Claude’s latest release) is stoking competitive fears that could pressure Adobe’s creative and stock‑assets businesses. Software is sick again today... and it’s not just because of Claude

Insider Buying and Selling

In related news, CFO Daniel Durn sold 1,646 shares of the firm's stock in a transaction on Tuesday, January 27th. The stock was sold at an average price of $294.85, for a total value of $485,323.10. Following the completion of the transaction, the chief financial officer directly 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 Securities & Exchange Commission, which is available through this hyperlink. 0.20% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several research firms have commented on ADBE. Argus reissued a "hold" rating on shares of Adobe in a research report on Monday, March 16th. KeyCorp reduced their price objective on shares of Adobe from $310.00 to $235.00 and set an "underweight" rating for the company in a research note on Friday, March 13th. Mizuho decreased their price objective on shares of Adobe from $340.00 to $315.00 and set an "outperform" rating for the company in a report on Friday, March 13th. BMO Capital Markets lowered their target price on shares of Adobe from $375.00 to $285.00 and set a "market perform" rating on the stock in a research report on Friday, March 13th. Finally, The Goldman Sachs Group cut their target price on Adobe from $290.00 to $220.00 and set a "sell" rating on the stock in a report on Friday, March 13th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, thirteen have assigned a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $343.88.

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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