Adobe Inc. $ADBE Shares Sold by Fayez Sarofim & Co

Key Points

• Fayez Sarofim & Co trimmed its Adobe stake by 13.0% in Q3, selling 79,077 shares and retaining 528,813 shares worth about $188.7 million (roughly 0.13% of the company).
• Record Q1 results: Adobe beat revenue and EPS estimates and highlighted rapid AI‑first ARR growth, while raising FY26 and Q2 guidance.
• Despite the beat, shares fell about 7.6% amid headlines including a $150M DOJ settlement, CEO succession uncertainty and analyst downgrades that weighed on sentiment.

Fayez Sarofim & Co trimmed its holdings in Adobe Inc. (NASDAQ:ADBE - Free Report) by 13.0% in the 3rd quarter, according to its most recent disclosure with the SEC. The firm owned 528,813 shares of the software company's stock after selling 79,077 shares during the period. Fayez Sarofim & Co owned approximately 0.13% of Adobe worth $188,689,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. Focus Partners Wealth lifted its stake in shares of Adobe by 4.2% in the 3rd quarter. Focus Partners Wealth now owns 48,647 shares of the software company's stock valued at $17,078,000 after purchasing an additional 1,957 shares during the last quarter. Destination Wealth Management increased its position in shares of Adobe by 11.2% during the 3rd quarter. Destination Wealth Management now owns 804 shares of the software company's stock worth $284,000 after purchasing an additional 81 shares during the last quarter. Distillate Capital Partners LLC increased its position in shares of Adobe by 23.2% during the 3rd quarter. Distillate Capital Partners LLC now owns 77,261 shares of the software company's stock worth $27,264,000 after purchasing an additional 14,549 shares during the last quarter. Circle Wealth Management LLC purchased a new stake in Adobe in the 3rd quarter valued at about $430,000. Finally, Clark Capital Management Group Inc. raised its holdings in Adobe by 40.7% in the 3rd quarter. Clark Capital Management Group Inc. now owns 104,930 shares of the software company's stock valued at $37,014,000 after buying an additional 30,346 shares during the period. Institutional investors and hedge funds own 81.79% of the company's stock.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Record Q1 results and AI traction — Adobe posted above‑consensus Q1 revenue and EPS and highlighted rapid AI-first ARR growth; management framed the quarter as an AI‑led acceleration, which supports the company’s long‑term revenue mix and margins. Adobe Delivers Record Q1 Results
• Neutral Sentiment: Guidance shows upside but raises questions — Adobe’s FY26 EPS range and Q2 outlook exceeded consensus, yet investors parsed the details (ARR cadence, freemium strategy) for sustainability before rewarding the stock. Adobe Q1 earnings & guidance
• Neutral Sentiment: Short‑interest figures reported inconsistently — publicly posted short data showed anomalous/zero values (NaN/0), so current short‑squeeze risk or bearish positioning is unclear.
• Negative Sentiment: DOJ settlement adds immediate cost and reputational overhang — Adobe agreed to a $150M package (roughly $75M cash + $75M in free services) to resolve claims about hard‑to‑cancel subscriptions, creating a headline liability and consumer‑facing remediation burden. Adobe agrees to pay $150 million to resolve alleged violations
• Negative Sentiment: CEO succession uncertainty — Shantanu Narayen announced he will step down once a successor is named (he will remain board chair), creating near‑term leadership uncertainty at a critical time for Adobe’s AI strategy and execution. Shantanu Narayen Announces Decision to Transition as Adobe's CEO
• Negative Sentiment: Analyst downgrades and lower targets amplify selling — Several firms cut price targets or moved to neutral/equal‑weight, citing CEO transition and mixed ARR trends, which pressured sentiment and triggered further mark‑downs. These Analysts Cut Their Forecasts On Adobe Following Q1 Earnings

Adobe Trading Down 7.6%

NASDAQ ADBE opened at $249.32 on Monday. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.00 and a current ratio of 0.91. The firm has a market cap of $102.35 billion, a price-to-earnings ratio of 14.52, a PEG ratio of 0.98 and a beta of 1.53. The firm has a 50 day simple moving average of $283.88 and a 200-day simple moving average of $322.76. Adobe Inc. has a one year low of $244.28 and a one year high of $422.95.

Adobe (NASDAQ:ADBE - Get Free Report) last announced its earnings results on Thursday, March 12th. The software company reported $6.06 earnings per share for the quarter, topping the consensus estimate of $5.87 by $0.19. The firm had revenue of $6.40 billion for the quarter, compared to the consensus estimate of $6.28 billion. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The firm's revenue for the quarter was up 12.0% on a year-over-year basis. During the same period in the prior year, the firm earned $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. Equities research analysts anticipate that Adobe Inc. will post 16.65 EPS for the current fiscal year.

Insider Buying and Selling at Adobe

In other news, CFO Daniel Durn sold 1,646 shares of the company's stock in a transaction on Tuesday, January 27th. The stock was sold at an average price of $294.85, for a total transaction of $485,323.10. Following the sale, the chief financial officer owned 41,995 shares of the company's stock, valued at approximately $12,382,225.75. This represents a 3.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.20% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have weighed in on ADBE shares. Robert W. Baird set a $350.00 target price on shares of Adobe in a research note on Wednesday, January 14th. Oppenheimer reissued a "market perform" rating on shares of Adobe in a research note on Friday. DA Davidson set a $300.00 price objective on shares of Adobe in a report on Friday. HSBC set a $302.00 price objective on shares of Adobe in a research report on Friday, February 13th. Finally, Barclays downgraded shares of Adobe from an "overweight" rating to an "equal weight" rating and dropped their target price for the company from $335.00 to $275.00 in a report on Friday. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, twelve have issued a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat, Adobe has a consensus rating of "Hold" and an average target price of $347.85.

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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