Adobe Inc. $ADBE Shares Sold by Dynamic Advisor Solutions LLC

Key Points

• Dynamic Advisor Solutions LLC reduced its Adobe stake by 63.5% in the second quarter, selling 8,956 shares and retaining 5,149 shares valued at approximately $1.06 million. Institutional investors still own 81.79% of Adobe.
• Adobe exceeded quarterly expectations, reporting $5.96 in EPS and $6.62 billion in revenue, with revenue up 12.7% year over year. The company also authorized a $25 billion share-repurchase program, potentially buying back up to 24.9% of its shares.
• Analyst sentiment remains cautious: Adobe has a consensus rating of “Hold” and an average price target of $271.30 after several firms lowered targets or downgraded the stock. Shares recently traded at $265.21, while investors continue to weigh valuation and AI-disruption risks.

Dynamic Advisor Solutions LLC cut its stake in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 63.5% in the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 5,149 shares of the software company's stock after selling 8,956 shares during the period. Dynamic Advisor Solutions LLC's holdings in Adobe were worth $1,056,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently modified their holdings of ADBE. SWAN Capital LLC lifted its holdings in shares of Adobe by 43.1% during the third quarter. SWAN Capital LLC now owns 103 shares of the software company's stock worth $36,000 after purchasing an additional 31 shares during the period. Logan Capital Management Inc. raised its position in Adobe by 0.3% during the 3rd quarter. Logan Capital Management Inc. now owns 9,789 shares of the software company's stock worth $3,453,000 after buying an additional 32 shares during the last quarter. Vista Capital Partners Inc. lifted its stake in shares of Adobe by 5.8% in the 2nd quarter. Vista Capital Partners Inc. now owns 624 shares of the software company's stock worth $241,000 after acquiring an additional 34 shares during the period. Old North State Wealth Management LLC boosted its holdings in shares of Adobe by 3.1% in the fourth quarter. Old North State Wealth Management LLC now owns 1,169 shares of the software company's stock valued at $409,000 after acquiring an additional 35 shares in the last quarter. Finally, Klingman & Associates LLC increased its stake in shares of Adobe by 3.5% during the fourth quarter. Klingman & Associates LLC now owns 1,104 shares of the software company's stock worth $386,000 after acquiring an additional 37 shares during the period. 81.79% of the stock is currently owned by hedge funds and other institutional investors.

Adobe Trading Up 1.9%

Shares of ADBE opened at $265.21 on Friday. Adobe Inc. has a twelve month low of $190.12 and a twelve month high of $370.86. 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 firm has a market capitalization of $105.42 billion, a P/E ratio of 15.17, a PEG ratio of 0.89 and a beta of 1.40. The firm's 50-day moving average is $228.08 and its two-hundred day moving average is $247.10.

Adobe (NASDAQ:ADBE - Get Free Report) last posted its quarterly earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share (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 net margin of 28.69% and a return on equity of 65.11%. The company's revenue for the quarter was up 12.7% on a year-over-year basis. During the same period last 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, research analysts predict that Adobe Inc. will post 19.81 earnings per share for the current fiscal year.

Adobe declared that its Board of Directors has initiated a share repurchase program on Tuesday, April 21st that allows the company to buyback $25.00 billion in shares. This buyback authorization allows the software company to buy up to 24.9% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's management believes its stock is undervalued.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. Wells Fargo & Company lowered their price objective on Adobe from $330.00 to $250.00 and set an "overweight" rating on the stock in a report on Friday, June 12th. Wolfe Research cut Adobe from an "outperform" rating to a "peer perform" rating in a report on Friday, June 12th. Barclays decreased their price target on Adobe from $275.00 to $250.00 and set an "equal weight" rating on the stock in a research note on Friday, June 12th. Freedom Capital lowered Adobe from a "strong-buy" rating to a "hold" rating in a report on Friday, June 12th. Finally, Phillip Securities cut Adobe from a "strong-buy" rating to a "hold" rating in a research report on Monday, June 29th. Seven equities research analysts have rated the stock with a Buy rating, twenty-one have assigned a Hold rating and six have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $271.30.

Adobe News Summary

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe launched a unified ChatGPT plug-in that brings more than 70 creative and productivity tools—including Photoshop, Lightroom, Acrobat, image, video and PDF capabilities—directly into OpenAI’s chatbot. The integration could make Adobe’s products easier to access, expand usage and position the company as an AI enabler rather than an AI casualty. Adobe Debuts ChatGPT App Featuring All Its Programs
• Positive Sentiment: Recent coverage highlights Adobe’s valuation after its sharp sell-off. The company is still producing double-digit revenue growth, stable margins and substantial free cash flow, while its latest quarterly results exceeded earnings and revenue expectations. A recovery in investor sentiment or a valuation re-rating could provide significant upside. Buy the Dip or Run: 3 Software Stocks Down 50% Face Their Moment of Truth
• Positive Sentiment: Zacks characterized ADBE as both a long-term growth candidate and a strong value stock, reflecting its depressed valuation relative to historical levels and continuing earnings potential. Why Adobe Systems Is a Top Growth Stock for the Long-Term
• Neutral Sentiment: Akamai’s strong cloud and security results offer an indirect positive signal because Adobe is among its customers, but the report does not provide new information about Adobe’s financial performance. Akamai Beats Quarterly Estimates on Cloud Infrastructure Demand
• Negative Sentiment: Adobe remains one of the software companies targeted by AI-disruption concerns. AI-native competitors could pressure pricing, customer retention and growth, and promotional commentary warns of insider selling, talent departures and business-model changes. These claims are not confirmed in the supplied reporting, but they underscore the key risk investors are monitoring. These Are the Four Signs a Company Is About to Be Destroyed by AI

Insider Buying and Selling at Adobe

In other news, CAO Jillian Forusz sold 416 shares of the firm's stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $264.33, for a total value of $109,961.28. Following the completion of the transaction, the chief accounting officer owned 3,824 shares in the company, valued at $1,010,797.92. This trade represents a 9.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director David A. Ricks purchased 10,000 shares of the business's stock in a transaction dated Thursday, June 25th. The shares were purchased at an average cost of $194.51 per share, with a total value of $1,945,100.00. Following the purchase, the director directly owned 17,655 shares in the company, valued at approximately $3,434,074.05. The trade was a 130.63% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders own 0.20% of the company's stock.

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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