Adobe Inc. $ADBE Shares Sold by Jacobs & Co. CA

Key Points

• Jacobs & Co. CA reduced its Adobe position by 56.7% in the second quarter, selling 18,764 shares and retaining 14,346 shares valued at approximately $2.94 million. Institutional investors still own 81.79% of Adobe.
• Analyst sentiment is mixed: Adobe has an average “Hold” rating and a consensus price target of $271.30, with several firms recently cutting targets and Morgan Stanley downgrading the stock to “Underweight.”
• Adobe’s latest quarter exceeded expectations, with revenue up 12.7% year over year, while management authorized a $25 billion share buyback. Insider activity was mixed as one director bought 10,000 shares and the chief accounting officer sold 416 shares.

Jacobs & Co. CA lessened its position in Adobe Inc. (NASDAQ:ADBE - Free Report) by 56.7% during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 14,346 shares of the software company's stock after selling 18,764 shares during the period. Jacobs & Co. CA's holdings in Adobe were worth $2,941,000 at the end of the most recent reporting period.

Other hedge funds have also recently bought and sold shares of the company. Nicholas Company Inc. grew its position in Adobe by 7.6% in the 4th quarter. Nicholas Company Inc. now owns 174,626 shares of the software company's stock valued at $61,117,000 after buying an additional 12,400 shares in the last quarter. Teacher Retirement System of Texas raised its position in shares of Adobe by 13.4% during the 4th quarter. Teacher Retirement System of Texas now owns 215,611 shares of the software company's stock worth $75,462,000 after buying an additional 25,435 shares in the last quarter. Wealthfront Advisers LLC lifted its stake in shares of Adobe by 13.2% in the 4th quarter. Wealthfront Advisers LLC now owns 55,179 shares of the software company's stock worth $19,312,000 after acquiring an additional 6,426 shares during the period. Orange Investment Advisors Inc. boosted its holdings in shares of Adobe by 21.6% in the fourth quarter. Orange Investment Advisors Inc. now owns 29,541 shares of the software company's stock valued at $10,339,000 after acquiring an additional 5,254 shares in the last quarter. Finally, Milestone Asset Management LLC boosted its holdings in shares of Adobe by 426.2% in the fourth quarter. Milestone Asset Management LLC now owns 7,478 shares of the software company's stock valued at $2,617,000 after acquiring an additional 6,057 shares in the last quarter. 81.79% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several brokerages recently commented on ADBE. Wells Fargo & Company dropped their target price on Adobe from $330.00 to $250.00 and set an "overweight" rating on the stock in a report on Friday, June 12th. Wall Street Zen lowered Adobe from a "buy" rating to a "hold" rating in a report on Saturday, July 4th. Sanford C. Bernstein reduced their price objective on shares of Adobe from $447.00 to $379.00 and set an "outperform" rating for the company in a research report on Friday, June 12th. Morgan Stanley cut shares of Adobe from an "equal weight" rating to an "underweight" rating and reduced their target price for the stock from $365.00 to $240.00 in a report on Tuesday, July 21st. Finally, Dbs Bank downgraded Adobe from a "moderate buy" rating to a "hold" rating in a research report on Tuesday, May 19th. Seven equities research analysts have rated the stock with a Buy rating, twenty-one have issued a Hold rating and six have issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $271.30.

Insider Buying and Selling

In other Adobe news, CAO Jillian Forusz sold 416 shares of the company's stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $264.33, for a total transaction of $109,961.28. Following the completion of the sale, the chief accounting officer owned 3,824 shares of the company's stock, valued at $1,010,797.92. This represents a 9.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director David A. Ricks acquired 10,000 shares of the firm's stock in a transaction that occurred on 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 completion of the acquisition, the director owned 17,655 shares in the company, valued at $3,434,074.05. This trade represents a 130.63% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 0.20% of the stock is currently owned by company insiders.

Trending Headlines about Adobe

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

Adobe Price Performance

ADBE opened at $265.21 on Friday. The stock has a market cap of $105.42 billion, a price-to-earnings ratio of 15.17, a PEG ratio of 0.89 and a beta of 1.40. The stock has a fifty day moving average price of $228.08 and a 200 day moving average price of $247.10. Adobe Inc. has a 1 year low of $190.12 and a 1 year 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.

Adobe (NASDAQ:ADBE - Get Free Report) last released 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. The firm had revenue of $6.62 billion for 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 firm's revenue was up 12.7% on a year-over-year basis. During the same quarter in the prior year, the company 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. Analysts forecast that Adobe Inc. will post 19.81 EPS for the current fiscal year.

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

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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