Adobe Inc. $ADBE Shares Bought by Act Two Investors LLC

Key Points

• Act Two Investors LLC increased its Adobe stake by 12.5% in the fourth quarter, adding 5,406 shares to bring its total to 48,599 shares valued at about $17.0 million.
• Analysts remain cautious on Adobe, with several firms cutting price targets and the overall consensus rating sitting at “Hold,” alongside an average target price of $338.15.
• Adobe reported solid quarterly results and announced a major buyback, beating earnings and revenue estimates while authorizing a $25 billion share repurchase program, equal to up to 24.9% of shares.

Act Two Investors LLC raised its holdings in Adobe Inc. (NASDAQ:ADBE - Free Report) by 12.5% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 48,599 shares of the software company's stock after acquiring an additional 5,406 shares during the quarter. Adobe accounts for about 2.9% of Act Two Investors LLC's portfolio, making the stock its 13th biggest holding. Act Two Investors LLC's holdings in Adobe were worth $17,009,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently bought and sold shares of ADBE. Brighton Jones LLC raised its holdings in 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 buying an additional 167 shares during the period. Sivia Capital Partners LLC raised its holdings in Adobe by 25.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company's stock worth $926,000 after buying an additional 486 shares during the period. United Bank raised its holdings in Adobe by 12.8% during the 2nd 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 period. Schnieders Capital Management LLC. raised its holdings in Adobe by 7.8% during the 2nd 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 period. Finally, Gamco Investors INC. ET AL raised its holdings in Adobe by 190.6% during the 2nd quarter. Gamco Investors INC. ET AL now owns 2,764 shares of the software company's stock worth $1,069,000 after buying an additional 1,813 shares during the period. 81.79% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several analysts have issued reports on ADBE shares. Morgan Stanley cut their price objective on Adobe from $425.00 to $365.00 and set an "equal weight" rating on the stock in a report on Friday, March 13th. TD Cowen dropped their target price on Adobe from $400.00 to $325.00 and set a "hold" rating on the stock in a report on Tuesday, March 10th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating on shares of Adobe in a report on Friday, March 13th. Royal Bank Of Canada dropped their target price on Adobe from $400.00 to $350.00 and set an "outperform" rating on the stock in a report on Friday, April 17th. Finally, BTIG Research assumed coverage on Adobe in a report on Monday, April 13th. They issued a "neutral" rating on the stock. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, seventeen have assigned a Hold rating and five have issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $338.15.

Adobe Trading Up 7.4%

Shares of NASDAQ ADBE opened at $259.21 on Friday. The stock has a market cap of $104.77 billion, a price-to-earnings ratio of 15.10, a PEG ratio of 1.01 and a beta of 1.42. The business has a 50 day simple moving average of $244.11 and a 200 day simple moving average of $284.39. Adobe Inc. has a 52 week low of $224.13 and a 52 week high of $421.48. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.91 and a current ratio of 0.91.

Adobe (NASDAQ:ADBE - Get Free Report) last announced its quarterly earnings results on Thursday, March 12th. The software company reported $6.06 EPS for the quarter, beating the consensus estimate of $5.87 by $0.19. The business had revenue of $6.40 billion during the quarter, compared to analysts' expectations of $6.28 billion. Adobe had a return on equity of 64.48% and a net margin of 29.48%.The firm's quarterly revenue was up 12.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted $5.08 EPS. 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 predict that Adobe Inc. will post 19.15 earnings per share for the current fiscal year.

Adobe announced that its Board of Directors has initiated a share repurchase program on Tuesday, April 21st that authorizes the company to buyback $25.00 billion in shares. This buyback authorization authorizes the software company to reacquire up to 24.9% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's leadership believes its shares are undervalued.

Key Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe is seeing renewed buying ahead of its expected June 11 earnings release, with investors likely adjusting positions and leaning into a valuation rebound after a prolonged reset in software stocks. Adobe shares rise as investors position ahead of next earnings and lean into a valuation rebound
• Positive Sentiment: Recent commentary highlighted Adobe’s AI strategy, including AI agents and Acrobat becoming more of an AI workspace, which supports the view that Adobe can adapt its products to new workflows and defend its enterprise software franchise. Adobe Acrobat Studio review: Acrobat becomes an AI workspace
• Positive Sentiment: Adobe Analytics was named a “Champion” in Info-Tech Research Group’s 2026 Digital Analytics Data Quadrant, reinforcing the strength of Adobe’s analytics and customer-experience products. Top Digital Analytics Platforms Named 2026 Champions in Info-Tech Research Group's Data Quadrant Report

Insider Activity at Adobe

In other Adobe news, CAO Jillian Forusz sold 755 shares of the company's stock in a transaction that occurred on Thursday, April 30th. The stock was sold at an average price of $246.25, for a total transaction of $185,918.75. Following the completion of the sale, 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Daniel Durn sold 1,336 shares of the company's stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $248.02, for a total value of $331,354.72. Following the sale, the chief financial officer directly owned 42,833 shares of the company's stock, valued at $10,623,440.66. The trade was a 3.02% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 77,091 shares of company stock valued at $18,782,773. 0.20% of the stock is owned by corporate insiders.

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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