Adobe Inc. $ADBE Shares Acquired by Geode Capital Management LLC

Key Points

• Geode Capital Management increased its Adobe stake by 3.7% in the fourth quarter, adding 414,049 shares and bringing its total holding to 11.53 million shares, worth about $4.03 billion.
• Adobe disclosed recent insider selling, including CEO Shantanu Narayen’s sale of 75,000 shares and CAO Jillian Forusz’s sale of 755 shares, with insiders selling 77,091 shares total last quarter.
• Analysts remain cautious overall: Adobe has a Hold consensus rating, even after recent earnings beat expectations and a new $25 billion share buyback authorization that covers up to 24.9% of outstanding shares.

Geode Capital Management LLC lifted its holdings in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 3.7% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 11,531,678 shares of the software company's stock after buying an additional 414,049 shares during the quarter. Geode Capital Management LLC owned approximately 2.81% of Adobe worth $4,027,170,000 as of its most recent SEC filing.

Other large investors have also made changes to their positions in the company. Western Pacific Wealth Management LP purchased a new stake in shares of Adobe during the fourth quarter worth approximately $26,000. Measured Wealth Private Client Group LLC purchased a new stake in shares of Adobe during the third quarter worth approximately $26,000. KERR FINANCIAL PLANNING Corp purchased a new stake in shares of Adobe during the third quarter worth approximately $27,000. Caitlin John LLC purchased a new stake in shares of Adobe during the third quarter worth approximately $28,000. Finally, Beacon Financial Strategies CORP purchased a new stake in shares of Adobe during the fourth quarter worth approximately $28,000. 81.79% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other news, CAO Jillian Forusz sold 755 shares of the company's stock in a transaction on 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 owned 3,521 shares of the company's stock, valued at $867,046.25. This represents a 17.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Shantanu Narayen sold 75,000 shares of the company's stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $243.54, for a total value of $18,265,500.00. Following the completion of the transaction, the chief executive officer directly owned 359,538 shares in the company, valued at approximately $87,561,884.52. This trade represents a 17.26% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 77,091 shares of company stock valued at $18,782,773 in the last quarter. Insiders own 0.20% of the company's stock.

Key Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe remains a strong cash-generating business, with recent commentary calling it a “free cash flow machine,” which may appeal to value-focused investors. Adobe: A Free Cash Flow Machine In Full Gear
• Positive Sentiment: Analysts and commentary are increasingly viewing Adobe as potentially undervalued after its selloff, implying upside if AI fears prove overdone. Is Adobe Stock an Undervalued Stock to Buy?
• Neutral Sentiment: Recent coverage comparing Adobe with Autodesk suggests both are investing in AI and subscriptions, but Adobe is being overshadowed by peers with better growth expectations. Adobe vs. Autodesk: Which Creative Software Stock Is the Better Buy?
• Neutral Sentiment: Adobe also appeared in a broader software-stock roundup, reinforcing that it remains a key name in the sector, though not a direct catalyst by itself. Adobe vs. Autodesk: Which Creative Software Stock Is the Better Buy?
• Negative Sentiment: Investor concerns remain centered on AI disruption, with commentary saying those fears have weighed on Adobe’s performance and sentiment. AI Disruption Concerns Weighed on Adobe’s (ADBE) Performance
• Negative Sentiment: One bearish article grouped Adobe among software names that may be vulnerable to AI disruption, adding to the market’s caution around the stock. These Are the Four Signs a Company Is About to Destroyed by AI

Analyst Ratings Changes

Several analysts recently commented on the company. HSBC set a $302.00 price target on Adobe in a research report on Friday, February 13th. William Blair cut Adobe from an "outperform" rating to a "market perform" rating in a research report on Thursday, March 26th. Wall Street Zen cut Adobe from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Summit Redstone set a $350.00 price target on Adobe in a research report on Friday, April 17th. Finally, Barclays cut Adobe from an "overweight" rating to an "equal weight" rating and dropped their target price for the company from $335.00 to $275.00 in a report on Friday, March 13th. One 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 issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $338.15.

Adobe Stock Down 0.9%

Shares of NASDAQ:ADBE opened at $238.24 on Thursday. 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 business has a fifty day moving average of $244.10 and a two-hundred day moving average of $285.17. The stock has a market cap of $96.30 billion, a P/E ratio of 13.88, a PEG ratio of 0.94 and a beta of 1.42. Adobe Inc. has a 52-week low of $224.13 and a 52-week high of $421.48.

Adobe (NASDAQ:ADBE - Get Free Report) last issued its 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 company had revenue of $6.40 billion during the quarter, compared to analysts' expectations of $6.28 billion. During the same period in the prior year, the business earned $5.08 EPS. The firm's quarterly revenue was up 12.0% on a year-over-year basis. 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 expect that Adobe Inc. will post 19.14 earnings per share for the current year.

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

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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