Adobe Inc. $ADBE Shares Sold by Azzad Asset Management Inc. ADV

Key Points

• Azzad Asset Management sharply reduced its Adobe stake by 86.7% in the first quarter, leaving it with 915 shares worth about $222,000.
• Adobe’s recent earnings topped expectations, with EPS of $5.96 and revenue of $6.62 billion, while quarterly revenue rose 12.7% year over year.
• Analyst sentiment remains cautious overall: several firms cut price targets, and the consensus rating is Hold with an average target price of $275, even as Adobe pursues AI-focused acquisitions and a $25 billion buyback plan.

Azzad Asset Management Inc. ADV lessened its stake in Adobe Inc. (NASDAQ:ADBE - Free Report) by 86.7% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 915 shares of the software company's stock after selling 5,973 shares during the period. Azzad Asset Management Inc. ADV's holdings in Adobe were worth $222,000 at the end of the most recent reporting period.

Other institutional investors have also recently added to or reduced their stakes in the company. State Street Corp grew its holdings in Adobe by 1.7% during the 3rd quarter. State Street Corp now owns 20,632,009 shares of the software company's stock worth $7,277,941,000 after acquiring an additional 352,448 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of Adobe by 3.7% in the 4th quarter. Geode Capital Management LLC now owns 11,531,678 shares of the software company's stock valued at $4,027,170,000 after purchasing an additional 414,049 shares in the last quarter. Norges Bank bought a new position in shares of Adobe during the fourth quarter worth about $2,275,165,000. Arrowstreet Capital Limited Partnership lifted its position in shares of 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 during the last quarter. Finally, Invesco Ltd. grew its stake in Adobe by 6.2% in the fourth quarter. Invesco Ltd. now owns 5,119,025 shares of the software company's stock worth $1,791,607,000 after purchasing an additional 297,337 shares in the last quarter. 81.79% of the stock is owned by institutional investors and hedge funds.

Adobe News Summary

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.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the stock. Barclays dropped their price objective on shares of Adobe from $275.00 to $250.00 and set an "equal weight" rating on the stock in a research note on Friday, June 12th. Oppenheimer reissued a "market perform" rating on shares of Adobe in a report on Friday, June 12th. KeyCorp reduced their target price on shares of Adobe from $235.00 to $195.00 and set an "underweight" rating for the company in a research note on Friday, June 12th. Wells Fargo & Company reduced their price objective on Adobe from $330.00 to $250.00 and set an "overweight" rating for the company in a research report on Friday, June 12th. Finally, Robert W. Baird cut their target price on Adobe from $270.00 to $230.00 and set a "neutral" rating on the stock in a research note on Friday, June 12th. Six equities research analysts have rated the stock with a Buy rating, twenty-two have issued a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $275.00.

Insider Buying and Selling

In other news, Director David A. Ricks acquired 10,000 shares of Adobe stock in a transaction on Thursday, June 25th. The stock was bought at an average cost of $194.51 per share, with a total value of $1,945,100.00. Following the completion of the purchase, the director owned 17,655 shares of the company's stock, valued at $3,434,074.05. This represents a 130.63% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Jillian Forusz sold 755 shares of the firm's stock in a transaction dated 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 transaction, the chief accounting officer owned 3,521 shares of the company's stock, valued at approximately $867,046.25. The trade was a 17.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 77,091 shares of company stock worth $18,782,773. Company insiders own 0.20% of the company's stock.

Adobe Price Performance

ADBE stock traded up $0.99 on Friday, hitting $223.64. 3,205,588 shares of the company's stock traded hands, compared to its average volume of 7,842,919. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 0.42. The stock has a market cap of $88.90 billion, a price-to-earnings ratio of 12.79, a P/E/G ratio of 0.75 and a beta of 1.43. Adobe Inc. has a 1-year low of $190.12 and a 1-year high of $376.16. The stock has a fifty day moving average of $230.84 and a 200-day moving average of $260.53.

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, beating analysts' consensus estimates of $5.82 by $0.14. The company 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 65.11% and a net margin of 28.69%.The company's quarterly revenue was up 12.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $5.06 EPS. 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, analysts forecast that Adobe Inc. will post 19.8 EPS for the current fiscal year.

Adobe declared that its board has authorized a stock repurchase program on Tuesday, April 21st that permits the company to buyback $25.00 billion in outstanding shares. This buyback authorization permits the software company to repurchase up to 24.9% of its stock through open market purchases. Stock buyback programs are often an indication that the company's board 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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