Adobe Inc. $ADBE Shares Sold by King Luther Capital Management Corp

Key Points

• King Luther Capital Management Corp cut its Adobe stake by 8.8% in the fourth quarter, selling 26,887 shares and leaving it with 279,402 shares valued at about $97.8 million.
• Adobe announced a $25 billion stock repurchase program, which could allow the company to buy back up to 24.9% of its outstanding shares.
• Despite recent pressure on the stock, Adobe reported better-than-expected quarterly results, with EPS of $6.06 and revenue of $6.40 billion, both above analyst estimates.

King Luther Capital Management Corp reduced its holdings in Adobe Inc. (NASDAQ:ADBE - Free Report) by 8.8% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 279,402 shares of the software company's stock after selling 26,887 shares during the quarter. King Luther Capital Management Corp owned approximately 0.07% of Adobe worth $97,788,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also recently added to or reduced their stakes in the company. 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.

Adobe Trading Down 1.7%

Shares of NASDAQ ADBE opened at $240.49 on Wednesday. The company has a market cap of $97.21 billion, a price-to-earnings ratio of 14.01, a price-to-earnings-growth ratio of 0.95 and a beta of 1.42. Adobe Inc. has a 12-month low of $224.13 and a 12-month high of $421.48. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.47. The stock's 50 day simple moving average is $244.37 and its 200 day simple moving average is $285.80.

Adobe (NASDAQ:ADBE - Get Free Report) last announced its quarterly earnings results on Thursday, March 12th. The software company reported $6.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.87 by $0.19. The business had revenue of $6.40 billion for the quarter, compared to the consensus estimate of $6.28 billion. Adobe had a return on equity of 64.48% and a net margin of 29.48%.The business's revenue was up 12.0% on a year-over-year basis. During the same quarter last year, the business posted $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 expect that Adobe Inc. will post 19.14 EPS for the current year.

Adobe announced that its Board of Directors has authorized a stock repurchase plan on Tuesday, April 21st that allows the company to buyback $25.00 billion in outstanding shares. This buyback authorization allows the software company to buy up to 24.9% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's board of directors believes its shares are undervalued.

Analyst Upgrades and Downgrades

ADBE has been the subject of several research analyst reports. Deutsche Bank Aktiengesellschaft restated a "hold" rating on shares of Adobe in a research note on Friday, March 13th. Citigroup restated a "neutral" rating on shares of Adobe in a report on Friday, April 10th. Wells Fargo & Company cut their price objective on Adobe from $420.00 to $405.00 and set an "overweight" rating on the stock in a report on Monday, March 9th. UBS Group cut their price objective on Adobe from $290.00 to $260.00 and set a "neutral" rating on the stock in a report on Friday, April 17th. Finally, Mizuho restated a "neutral" rating and issued a $270.00 price objective (down from $315.00) on shares of Adobe in a report on Monday, April 27th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, seventeen have issued a Hold rating and five have assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $338.15.

Insider Buying and Selling

In related news, CEO Shantanu Narayen sold 75,000 shares of the firm's stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $243.54, for a total value of $18,265,500.00. Following the sale, the chief executive officer owned 359,538 shares of the company's stock, valued at approximately $87,561,884.52. This trade represents a 17.26% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Jillian Forusz sold 755 shares of the firm's 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 completion of the sale, the chief accounting officer directly owned 3,521 shares in the company, valued at approximately $867,046.25. This trade represents a 17.66% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 77,091 shares of company stock valued at $18,782,773. 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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