Adobe Inc. $ADBE Shares Acquired by Merit Financial Group LLC

Key Points

• Merit Financial Group boosted its Adobe position by 20.8% to 35,052 shares (worth about $12.27M); overall institutional investors now own 81.79% of ADBE, with large funds like Arrowstreet, Dodge & Cox, AQR and Amundi adding significant stakes.
• Adobe beat Q1 estimates with $6.06 EPS (vs. $5.87 expected) and $6.40B revenue (+12% YoY) and set FY2026 guidance of $23.30–$23.50 EPS (Q2 guidance $5.80–$5.85).
• Market sentiment is mixed — the average analyst rating is a Hold with an average target of $339.88 while the stock trades near multi‑year lows (~$244.45); Adobe’s launch of the Firefly AI Assistant offers potential upside but also faces competitive and valuation headwinds.

Merit Financial Group LLC grew its position in Adobe Inc. (NASDAQ:ADBE - Free Report) by 20.8% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 35,052 shares of the software company's stock after buying an additional 6,027 shares during the quarter. Merit Financial Group LLC's holdings in Adobe were worth $12,268,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also modified their holdings of ADBE. Arrowstreet Capital Limited Partnership grew its stake in shares of Adobe by 53.3% in the third quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company's stock valued at $1,981,448,000 after buying an additional 1,952,994 shares in the last quarter. Dodge & Cox grew its stake in shares of Adobe by 8,006.6% in the third quarter. Dodge & Cox now owns 1,593,506 shares of the software company's stock valued at $562,109,000 after buying an additional 1,573,849 shares in the last quarter. AQR Capital Management LLC grew its stake in shares of Adobe by 55.2% in the third quarter. AQR Capital Management LLC now owns 2,587,399 shares of the software company's stock valued at $912,705,000 after buying an additional 920,353 shares in the last quarter. Amundi grew its stake in shares of Adobe by 17.9% in the third quarter. Amundi now owns 4,888,283 shares of the software company's stock valued at $1,711,583,000 after buying an additional 742,646 shares in the last quarter. Finally, Victory Capital Management Inc. grew its stake in shares of Adobe by 112.6% in the third quarter. Victory Capital Management Inc. now owns 1,341,410 shares of the software company's stock valued at $469,467,000 after buying an additional 710,357 shares in the last quarter. 81.79% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the company. BTIG Research began coverage on Adobe in a research note on Monday, April 13th. They issued a "neutral" rating for the company. KeyCorp lowered their target price on Adobe from $310.00 to $235.00 and set an "underweight" rating for the company in a research note on Friday, March 13th. Sanford C. Bernstein set a $447.00 target price on Adobe and gave the stock an "outperform" rating in a research note on Friday, March 13th. Morgan Stanley lowered their target price on Adobe from $425.00 to $365.00 and set an "equal weight" rating for the company in a research note on Friday, March 13th. Finally, BMO Capital Markets lowered their target price on Adobe from $375.00 to $285.00 and set a "market perform" rating for the company in a research note on Friday, March 13th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, fifteen have assigned a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $339.88.

Adobe Trading Down 1.5%

ADBE opened at $244.45 on Friday. Adobe Inc. has a 12 month low of $224.13 and a 12 month high of $422.95. The stock has a market capitalization of $98.81 billion, a price-to-earnings ratio of 14.24, a PEG ratio of 0.97 and a beta of 1.52. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.91 and a quick ratio of 0.91. The business has a fifty day moving average price of $253.43 and a 200 day moving average price of $303.58.

Adobe (NASDAQ:ADBE - Get Free Report) last released its earnings results on Thursday, March 12th. The software company reported $6.06 EPS for the quarter, topping 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 during the quarter, compared to analysts' expectations of $6.28 billion. During the same period in the previous year, the firm posted $5.08 EPS. Adobe's revenue for the quarter 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. Sell-side analysts expect that Adobe Inc. will post 16.65 earnings per share for the current fiscal year.

More Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe launched the Firefly AI Assistant — a conversational, agentic tool that automates multi‑step creative workflows inside Photoshop, Premiere and Illustrator; the product expands Adobe’s AI monetization paths and reinforces Creative Cloud differentiation. Read More.
• Positive Sentiment: Zacks and several outlets highlight Adobe’s expanded Firefly/AI portfolio for creators, noting the launch could speed workflows and help Adobe justify AI investments — a potential revenue/ARR upside if adoption scales. Read More.
• Positive Sentiment: Adobe reported AI traffic to U.S. retail sites is converting materially better (March AI traffic +42% vs. non‑AI), supporting the business case that Adobe’s AI features can drive customer ROI and platform value. Read More.
• Neutral Sentiment: Several media pieces and analysts note Adobe’s shares are at multi‑year lows, framing the stock as a “cheap” software name — that can attract value buyers but also reflects investor caution on AI/valuation. Read More.
• Neutral Sentiment: Analysts are recalibrating valuation rather than overhauling it — some firms trimmed targets modestly while others remain positive; reports show measured fair‑value tweaks reflecting mixed views on AI ROI. Read More.
• Negative Sentiment: Royal Bank of Canada cut its price target from $400 to $350 (still Outperform). A notable PT cut from a major bank can pressure sentiment even when the rating stays positive. Read More.
• Negative Sentiment: Competition risk rose as Anthropic and others develop AI design tools that could encroach on Adobe’s product moat — a tangible long‑term risk for market share in creative workflows. Read More.
• Negative Sentiment: Data shows sizable institutional reductions (e.g., UBS AM) and some insider sales in recent months — selling from large holders can amplify downward pressure in a low‑price environment. Read More.

Insider Transactions at Adobe

In other Adobe news, CFO Daniel Durn sold 1,646 shares of Adobe stock in a transaction dated Tuesday, January 27th. The stock was sold at an average price of $294.85, for a total transaction of $485,323.10. Following the completion of the sale, the chief financial officer directly owned 41,995 shares of the company's stock, valued at $12,382,225.75. The trade was a 3.77% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.20% of the stock is owned by company insiders.

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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