Adobe Inc. $ADBE Shares Sold by Resona Asset Management Co. Ltd.

Key Points

• Resona Asset Management trimmed its Adobe stake by 2.2% in the fourth quarter, selling 6,914 shares and ending with 300,858 shares valued at about $105.5 million.
• Adobe posted strong quarterly results, with EPS of $6.06 and revenue of $6.40 billion, both above expectations, and it raised FY2026 guidance to $23.30-$23.50 EPS.
• The company approved a massive buyback authorizing up to $25 billion in share repurchases, equal to nearly 24.9% of its shares outstanding.

Resona Asset Management Co. Ltd. reduced its stake in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 2.2% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 300,858 shares of the software company's stock after selling 6,914 shares during the period. Resona Asset Management Co. Ltd. owned 0.07% of Adobe worth $105,542,000 as of its most recent SEC filing.

Several other institutional investors have also recently modified their holdings of the stock. Vanguard Group Inc. raised its position in shares of Adobe by 0.8% during the 3rd quarter. Vanguard Group Inc. now owns 41,369,395 shares of the software company's stock worth $14,593,054,000 after purchasing an additional 344,816 shares during the last quarter. State Street Corp raised its position in shares of 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 purchasing an additional 352,448 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its position in shares of Adobe by 53.3% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company's stock worth $1,981,448,000 after purchasing an additional 1,952,994 shares during the last quarter. Amundi raised its position in shares of Adobe by 17.9% during the 3rd quarter. Amundi now owns 4,888,283 shares of the software company's stock worth $1,711,583,000 after purchasing an additional 742,646 shares during the last quarter. Finally, Invesco Ltd. raised its position in shares of Adobe by 9.4% during the 3rd quarter. Invesco Ltd. now owns 4,821,688 shares of the software company's stock worth $1,700,850,000 after purchasing an additional 414,526 shares during the last quarter. 81.79% of the stock is currently owned by institutional investors and hedge funds.

Adobe Stock Up 3.2%

Shares of NASDAQ ADBE opened at $255.64 on Tuesday. Adobe Inc. has a 52-week low of $224.13 and a 52-week high of $422.95. The firm has a fifty day moving average of $247.40 and a 200-day moving average of $289.63. The stock has a market capitalization of $103.33 billion, a PE ratio of 14.89, a P/E/G ratio of 0.97 and a beta of 1.42. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.47.

Adobe (NASDAQ:ADBE - Get Free Report) last announced its quarterly earnings data on Thursday, March 12th. The software company reported $6.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.87 by $0.19. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The company had revenue of $6.40 billion during the quarter, compared to analysts' expectations of $6.28 billion. During the same period in the previous year, the company earned $5.08 EPS. The business's quarterly revenue was up 12.0% compared to the same quarter last year. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. On average, analysts anticipate that Adobe Inc. will post 19.14 EPS for the current year.

Adobe announced that its Board of Directors has authorized 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 repurchase up to 24.9% of its shares through open market purchases. Shares buyback programs are often an indication that the company's management believes its shares are undervalued.

Insider Buying and Selling

In related news, CFO Daniel Durn sold 1,336 shares of the company's stock in a transaction on Monday, April 20th. The shares were sold at an average price of $248.02, for a total transaction of $331,354.72. Following the completion of the sale, the chief financial officer directly owned 42,833 shares of the company's stock, valued at approximately $10,623,440.66. This represents a 3.02% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Shantanu Narayen sold 75,000 shares of the company's stock in a transaction on Tuesday, April 28th. The stock was sold at an average price of $243.54, for a total transaction of $18,265,500.00. Following the sale, the chief executive officer directly 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 77,091 shares of company stock valued at $18,782,773. Company insiders own 0.20% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on ADBE. BMO Capital Markets cut their price objective on Adobe from $375.00 to $285.00 and set a "market perform" rating for the company in a research report on Friday, March 13th. Jefferies Financial Group lowered their target price on shares of Adobe from $400.00 to $290.00 and set a "hold" rating for the company in a research note on Monday, February 23rd. HSBC set a $302.00 target price on shares of Adobe in a research note on Friday, February 13th. Citigroup reaffirmed a "neutral" rating on shares of Adobe in a research note on Friday, April 10th. Finally, BTIG Research assumed coverage on shares of Adobe in a research note on Monday, April 13th. They issued a "neutral" rating for the company. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, sixteen have issued a Hold rating and five have given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $338.15.

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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