Adobe Inc. $ADBE Shares Purchased by Arrowstreet Capital Limited Partnership

Key Points

• Arrowstreet Capital increased its Adobe stake by 10.9% in the fourth quarter, buying 611,358 additional shares and bringing its holding to 6.23 million shares worth about $2.18 billion.
• Adobe reported record Q2 results with revenue of $6.62 billion and EPS of $5.96, both above estimates, and raised its full-year guidance. Management also said AI-driven demand is helping support growth.
• Despite the strong quarter, investor concerns remain around leadership changes and AI monetization, with multiple analysts trimming price targets or downgrading the stock; Adobe’s shares were also trading far below their 52-week high.

Arrowstreet Capital Limited Partnership boosted its holdings in Adobe Inc. (NASDAQ:ADBE - Free Report) by 10.9% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 6,228,503 shares of the software company's stock after purchasing an additional 611,358 shares during the quarter. Adobe makes up 1.3% of Arrowstreet Capital Limited Partnership's portfolio, making the stock its 9th biggest holding. Arrowstreet Capital Limited Partnership owned approximately 1.52% of Adobe worth $2,179,914,000 as of its most recent SEC filing.

Several other institutional investors have also recently added to or reduced their stakes in ADBE. Western Pacific Wealth Management LP acquired a new position in Adobe in the fourth quarter valued at $26,000. Measured Wealth Private Client Group LLC acquired a new position in Adobe in the third quarter valued at $26,000. KERR FINANCIAL PLANNING Corp acquired a new position in Adobe in the third quarter valued at $27,000. Caitlin John LLC acquired a new position in Adobe in the third quarter valued at $28,000. Finally, Beacon Financial Strategies CORP acquired a new position in Adobe in the fourth quarter valued at $28,000. 81.79% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other Adobe news, CFO Daniel Durn sold 1,336 shares of the stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $248.02, for a total transaction of $331,354.72. Following the transaction, the chief financial officer owned 42,833 shares of the company's stock, valued at $10,623,440.66. This trade represents a 3.02% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CAO Jillian Forusz sold 755 shares of the stock in a transaction that occurred 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 sale, the chief accounting officer owned 3,521 shares in the company, valued at $867,046.25. The trade was a 17.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the company. Oppenheimer restated a "market perform" rating on shares of Adobe in a research note on Friday. Royal Bank Of Canada dropped their price target on Adobe from $350.00 to $285.00 and set an "outperform" rating for the company in a research note on Monday, June 8th. Evercore set a $225.00 price target on Adobe and gave the stock an "in-line" rating in a research note on Friday. Piper Sandler dropped their price target on Adobe from $280.00 to $240.00 and set a "neutral" rating for the company in a research note on Friday. Finally, Dbs Bank lowered Adobe from a "moderate buy" rating to a "hold" rating in a research note on Tuesday, May 19th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, twenty have given a Hold rating and five have assigned a Sell rating to the company. According to MarketBeat, Adobe currently has an average rating of "Hold" and a consensus price target of $278.16.

Key Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe reported record Q2 revenue of $6.62 billion and EPS of $5.96, both above expectations, while also raising full-year revenue and earnings guidance. The company said AI-driven demand and stronger subscription spending supported results. Adobe Reports Record Q2 Results
• Positive Sentiment: Management highlighted accelerating adoption of Adobe’s AI tools, with AI-first annual recurring revenue topping $500 million, which supports the long-term growth case. Adobe Q2 Earnings Beat Estimates, Revenues Up Y/Y, Shares Fall
• Neutral Sentiment: Despite the beat, Adobe signaled a strategic shift toward freemium AI products and prioritizing user growth over immediate monetization, which adds uncertainty around near-term ARR growth. ADBE Q2 Earnings Call Centers on Freemium AI Push, Raised Outlook
• Negative Sentiment: Investors were rattled by the sudden departure of CFO Dan Durn, which adds to leadership uncertainty while Adobe is also in the middle of a CEO succession process. Adobe raises annual revenue forecast, CFO to exit
• Negative Sentiment: Wall Street reacted with multiple price-target cuts and downgrades, reflecting concerns that Adobe’s core growth may be decelerating and that AI monetization is still not proven. Leadership Exits, Decelerating Core Growth Cloud Adobe's Earnings Beat

Adobe Price Performance

ADBE stock opened at $204.02 on Friday. 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 Inc. has a 1 year low of $196.90 and a 1 year high of $405.00. The firm has a market cap of $82.46 billion, a P/E ratio of 11.67, a price-to-earnings-growth ratio of 0.80 and a beta of 1.42. The stock has a 50-day simple moving average of $244.54 and a 200-day simple moving average of $278.61.

Adobe (NASDAQ:ADBE - Get Free Report) last issued its quarterly earnings results on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, beating analysts' consensus estimates of $5.82 by $0.14. The firm had revenue of $6.62 billion during the quarter, compared to the consensus estimate of $6.45 billion. Adobe had a return on equity of 64.99% and a net margin of 28.69%.Adobe's revenue for the quarter was up 12.7% on a year-over-year basis. During the same quarter in the prior year, the business posted $5.06 earnings per share. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. On average, equities analysts predict that Adobe Inc. will post 19.14 earnings per share for the current fiscal year.

Adobe announced that its board has approved a stock repurchase 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 repurchase up to 24.9% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's board of directors believes its shares are undervalued.

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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