Adobe Inc. $ADBE Position Reduced by Heritage Investors Management Corp

Key Points

• Heritage Investors Management cut its Adobe stake by 14.5% in the fourth quarter, selling 9,485 shares and leaving it with 55,946 shares valued at about $19.6 million.
• Adobe insiders also sold shares recently, including CFO Daniel Durn and CEO Shantanu Narayen, with insider selling totaling 77,091 shares over the past 90 days.
• Analyst sentiment remains cautious: the stock has a consensus rating of “Hold,” with an average price target of $338.15, even as Adobe reported stronger-than-expected quarterly earnings and approved a $25 billion share buyback.

Heritage Investors Management Corp cut its position in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 14.5% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 55,946 shares of the software company's stock after selling 9,485 shares during the quarter. Heritage Investors Management Corp's holdings in Adobe were worth $19,581,000 at the end of the most recent quarter.

Other hedge funds also recently bought and sold shares of the company. Western Pacific Wealth Management LP purchased a new stake in Adobe during the fourth quarter valued at about $26,000. Measured Wealth Private Client Group LLC purchased a new stake in Adobe during the third quarter valued at about $26,000. KERR FINANCIAL PLANNING Corp purchased a new stake in Adobe during the third quarter valued at about $27,000. Caitlin John LLC purchased a new stake in Adobe during the third quarter valued at about $28,000. Finally, Beacon Financial Strategies CORP purchased a new stake in Adobe during the fourth quarter valued at about $28,000. 81.79% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Adobe

In other Adobe news, CFO Daniel Durn sold 1,336 shares of Adobe stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $248.02, for a total value of $331,354.72. Following the completion of the sale, the chief financial officer directly owned 42,833 shares in the company, valued at $10,623,440.66. The trade was a 3.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Shantanu Narayen sold 75,000 shares of Adobe stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $243.54, for a total transaction of $18,265,500.00. Following the completion of the sale, the chief executive officer owned 359,538 shares of the company's stock, valued at $87,561,884.52. This trade represents a 17.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 77,091 shares of company stock worth $18,782,773 over the last ninety days. 0.20% of the stock is currently owned by insiders.

Analyst Ratings Changes

A number of analysts have commented on ADBE shares. Barclays lowered shares of Adobe from an "overweight" rating to an "equal weight" rating and reduced their price objective for the company from $335.00 to $275.00 in a research note on Friday, March 13th. Wells Fargo & Company reduced their price target on shares of Adobe from $420.00 to $405.00 and set an "overweight" rating for the company in a research report on Monday, March 9th. DA Davidson set a $300.00 price target on shares of Adobe in a research report on Friday, March 13th. The Goldman Sachs Group reduced their price target on shares of Adobe from $290.00 to $220.00 and set a "sell" rating for the company in a research report on Friday, March 13th. Finally, BMO Capital Markets reduced their price target on shares of Adobe from $375.00 to $285.00 and set a "market perform" rating for the company in a research report on Friday, March 13th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, seventeen have given a Hold rating and five have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $338.15.

Adobe Price Performance

NASDAQ ADBE opened at $244.10 on Friday. 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 capitalization of $98.67 billion, a PE ratio of 14.22, a price-to-earnings-growth ratio of 0.99 and a beta of 1.42. The company has a 50 day moving average price of $245.63 and a two-hundred day moving average price of $287.76. Adobe Inc. has a 12-month low of $224.13 and a 12-month high of $421.48.

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. The firm had revenue of $6.40 billion during the quarter, compared to analysts' expectations of $6.28 billion. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The company's revenue was up 12.0% compared to the same quarter last year. During the same period in the previous year, the company earned $5.08 earnings per share. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. As a group, equities analysts predict that Adobe Inc. will post 19.14 earnings per share for the current fiscal year.

Adobe declared that its board has approved a share buyback plan on Tuesday, April 21st that permits the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization permits the software company to reacquire up to 24.9% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's leadership believes its stock is undervalued.

More Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe is expanding its Firefly-powered creative tools into Google Gemini, which could broaden usage of its software and reinforce its position in digital creativity workflows. Adobe Is Bringing Its Firefly-Powered Creative AI Tools Directly Into Google Gemini
• Positive Sentiment: Commentary from 24/7 Wall St. highlighted Adobe as an oversold turnaround idea, arguing the stock’s weakness may be overdone relative to its fundamentals and AI-related revenue prospects. Adobe Price Prediction. A $417 Stock Now at $253 With AI Revenue Tripling. Here Is Our 12 Month Target
• Positive Sentiment: Michael Burry reportedly maintained a position in Adobe, which may signal some contrarian investor confidence in the beaten-down stock. Adobe Inc. (ADBE): Michael Burry Maintains Position

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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