Adobe Inc. $ADBE Shares Bought by Applied Finance Capital Management LLC

Key Points

• Applied Finance Capital Management increased its stake in Adobe by 7.9% in the first quarter, buying 7,309 more shares and bringing its total to 100,063 shares worth about $24.3 million.
• Adobe’s latest quarterly results beat expectations, with EPS of $5.96 and revenue of $6.62 billion, both above analyst estimates. Revenue rose 12.7% year over year, and the company also reaffirmed guidance for FY 2026.
• The company authorized a $25 billion share repurchase program, and insiders showed mixed activity: Director David A. Ricks bought shares while CEO Shantanu Narayen sold shares. Analysts currently have a consensus Hold rating on Adobe.

Applied Finance Capital Management LLC raised its holdings in Adobe Inc. (NASDAQ:ADBE - Free Report) by 7.9% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 100,063 shares of the software company's stock after purchasing an additional 7,309 shares during the quarter. Adobe accounts for 1.8% of Applied Finance Capital Management LLC's holdings, making the stock its 13th largest holding. Applied Finance Capital Management LLC's holdings in Adobe were worth $24,323,000 as of its most recent SEC filing.

Other large investors also recently bought and sold shares of the company. Norges Bank acquired a new stake in shares of Adobe during the fourth quarter valued at about $2,275,165,000. AQR Capital Management LLC increased its holdings in Adobe by 55.2% in the 3rd quarter. AQR Capital Management LLC now owns 2,587,399 shares of the software company's stock valued at $912,705,000 after purchasing an additional 920,353 shares during the last quarter. Amundi raised its position in 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 purchasing an additional 742,646 shares during the period. J. Stern & Co. LLP lifted its stake in Adobe by 26,128.1% during the fourth quarter. J. Stern & Co. LLP now owns 652,031 shares of the software company's stock worth $228,204,000 after purchasing an additional 649,545 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its stake in Adobe by 10.9% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 6,228,503 shares of the software company's stock worth $2,179,914,000 after purchasing an additional 611,358 shares in the last quarter. Institutional investors and hedge funds own 81.79% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on ADBE shares. Barclays cut their price objective on Adobe from $275.00 to $250.00 and set an "equal weight" rating on the stock in a report on Friday, June 12th. Citigroup reaffirmed a "market perform" rating on shares of Adobe in a research report on Friday, June 12th. DA Davidson cut their price target on shares of Adobe from $300.00 to $250.00 and set a "buy" rating on the stock in a research note on Friday, June 12th. Robert W. Baird reduced their price target on shares of Adobe from $270.00 to $230.00 and set a "neutral" rating on the stock in a research report on Friday, June 12th. Finally, Summit Redstone set a $350.00 price objective on shares of Adobe in a research note on Friday, April 17th. Six research analysts have rated the stock with a Buy rating, twenty-two have issued a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $275.00.

Adobe Price Performance

ADBE stock opened at $223.64 on Monday. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.75 and a quick ratio of 0.75. The firm has a market capitalization of $88.90 billion, a P/E ratio of 12.79, a P/E/G ratio of 0.75 and a beta of 1.43. The business's 50-day moving average is $230.84 and its two-hundred day moving average is $259.85. Adobe Inc. has a 1 year low of $190.12 and a 1 year high of $376.16.

Adobe (NASDAQ:ADBE - Get Free Report) last announced its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, topping analysts' consensus estimates of $5.82 by $0.14. Adobe had a return on equity of 65.11% and a net margin of 28.69%.The business had revenue of $6.62 billion during the quarter, compared to the consensus estimate of $6.45 billion. During the same period in the previous year, the company posted $5.06 earnings per share. The business's revenue for the quarter was up 12.7% on a year-over-year basis. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. Analysts anticipate that Adobe Inc. will post 19.8 earnings per share for the current fiscal year.

Adobe announced that its Board of Directors has authorized a stock 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 buy up to 24.9% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's management believes its shares are undervalued.

Insider Activity

In other Adobe news, Director David A. Ricks bought 10,000 shares of the business's stock in a transaction dated Thursday, June 25th. The shares were acquired at an average price of $194.51 per share, with a total value of $1,945,100.00. Following the transaction, the director owned 17,655 shares of the company's stock, valued at approximately $3,434,074.05. The trade was a 130.63% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Shantanu Narayen sold 75,000 shares of the business's stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $243.54, for a total value of $18,265,500.00. Following the sale, the chief executive officer owned 359,538 shares of the company's stock, valued at approximately $87,561,884.52. The trade was a 17.26% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 77,091 shares of company stock valued at $18,782,773 in the last 90 days. Company insiders own 0.20% of the company's stock.

Trending Headlines about Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe’s planned acquisition of Topaz Labs could strengthen its generative AI and video/image editing tools, supporting long-term product differentiation and monetization. Adobe (ADBE) to Acquire Topaz Labs
• Positive Sentiment: Another recent analysis highlighted Adobe’s acquisition of Rephrase.AI as a way to bolster generative AI video capabilities for e-commerce, which could broaden Adobe’s addressable market and improve growth prospects. Adobe's Strategic Acquisition of Rephrase.AI to Bolster Generative AI Video Capabilities for E-commerce
• Neutral Sentiment: Market commentary from Seeking Alpha and other outlets suggested the stock may be oversold or viewed as a comeback candidate, but these were opinion pieces rather than new fundamentals. Adobe: Market Overreaction Creates A Highly Asymmetric Risk-Reward Opportunity
• Neutral Sentiment: Short-interest data showed no meaningful shares outstanding to short, so it does not appear to be adding real trading pressure or changing the investment case.
• Negative Sentiment: Bank of America reportedly downgraded Adobe to Underperform, arguing that AI tools could pressure Adobe’s growth rather than accelerate it, reinforcing investor concerns about competitive disruption. Bank of America Says AI Will Drag Down Adobe Stock
• Negative Sentiment: Additional headlines about users canceling Adobe Acrobat for cheaper alternatives may add to the narrative that pricing pressure and product substitution remain risks for the company.

Adobe 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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