Adobe Inc. $ADBE Shares Sold by Scharf Investments LLC

Key Points

• Scharf Investments LLC trimmed its Adobe stake by 3.5%, selling 8,014 shares and leaving 222,911 shares valued at $78.02 million (about 2.1% of the firm's holdings and its 24th largest position).
• Adobe beat quarterly expectations, reporting $6.06 EPS versus $5.87 expected and $6.40B in revenue (up 12% YoY), and provided FY2026 guidance of $23.30–23.50 EPS and Q2 guidance of $5.80–5.85 EPS.
• The UK Competition and Markets Authority has opened a probe into Adobe’s subscription cancellation practices, posing potential regulatory and reputational risk that could force policy or pricing changes.

Scharf Investments LLC lowered its position in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 3.5% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 222,911 shares of the software company's stock after selling 8,014 shares during the period. Adobe comprises about 2.1% of Scharf Investments LLC's holdings, making the stock its 24th largest position. Scharf Investments LLC owned 0.05% of Adobe worth $78,021,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. Brighton Jones LLC raised its position in Adobe by 2.1% in the 4th quarter. Brighton Jones LLC now owns 8,068 shares of the software company's stock valued at $3,588,000 after purchasing an additional 167 shares during the last quarter. Sivia Capital Partners LLC boosted its stake in Adobe by 25.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company's stock worth $926,000 after purchasing an additional 486 shares during the period. United Bank grew its position in Adobe by 12.8% during the 2nd quarter. United Bank now owns 3,773 shares of the software company's stock worth $1,460,000 after purchasing an additional 428 shares during the last quarter. Schnieders Capital Management LLC. grew its position in Adobe by 7.8% during the 2nd quarter. Schnieders Capital Management LLC. now owns 2,630 shares of the software company's stock worth $1,017,000 after purchasing an additional 190 shares during the last quarter. Finally, Edgestream Partners L.P. increased its stake in Adobe by 34.2% in the second quarter. Edgestream Partners L.P. now owns 4,291 shares of the software company's stock valued at $1,660,000 after purchasing an additional 1,093 shares during the period. 81.79% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Firefly custom AI models: Adobe highlighted custom AI model capabilities in Firefly that let creatives and enterprises build branded, controllable generative models — a competitive advantage for enterprise AI workflows and monetization of content/brand-safe models. What makes Adobe Firefly's custom AI models so exciting for creatives
• Positive Sentiment: Product innovation — Illustrator AI features: Adobe rolled out an Illustrator "Turntable" feature and AI tools to rotate 2D vectors in 3D space, strengthening its Creative Cloud value proposition and stickiness for professional users. Adobe Illustrator can now use AI to rotate 2D vectors in 3D space
• Positive Sentiment: International advisory hire: Former Airtel CEO Manoj Kohli joined Adobe’s international advisory board, signaling focus on global expansion and partnerships in key emerging markets — supportive for enterprise and emerging‑market growth strategies. Former Airtel CEO Manoj Kohli joins Adobe international advisory board
• Neutral Sentiment: Analyst/coverage attention: Zacks and other outlets are featuring Adobe in investment idea pieces and watchers’ lists — raises visibility but not immediate fundamental change. Zacks Investment Ideas feature highlights Adobe's and Microsoft
• Neutral Sentiment: Market sentiment lift: Adobe was among several tech names that jumped in a session tied to improved geopolitical talks — a short‑term sentiment boost rather than company‑specific news. Adobe, Paycom, Pegasystems, Salesforce, and Box Shares Are Soaring, What You Need To Know
• Negative Sentiment: UK CMA probe into subscription cancellations: The Competition and Markets Authority opened an inquiry into Adobe’s early cancellation costs and subscription practices, which introduces regulatory and reputational risk and could force policy or pricing changes. Adobe Faces CMA Probe As Subscription Model And Valuation Come Into Focus

Adobe Trading Up 0.8%

Shares of Adobe stock opened at $243.08 on Wednesday. The firm has a market cap of $98.25 billion, a price-to-earnings ratio of 14.16, a price-to-earnings-growth ratio of 0.94 and a beta of 1.53. Adobe Inc. has a 52-week low of $233.15 and a 52-week high of $422.95. The company's 50-day simple moving average is $266.33 and its 200-day simple moving average is $313.69. 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 EPS for the quarter, beating analysts' consensus estimates of $5.87 by $0.19. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The firm had revenue of $6.40 billion during the quarter, compared to the consensus estimate of $6.28 billion. During the same quarter last year, the firm earned $5.08 earnings per share. The firm's 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. As a group, equities research analysts anticipate that Adobe Inc. will post 16.65 earnings per share for the current year.

Analyst Ratings Changes

ADBE has been the subject of several recent research reports. Wolfe Research decreased their target price on shares of Adobe from $450.00 to $440.00 and set an "outperform" rating for the company in a research note on Thursday, December 11th. Wells Fargo & Company dropped their price target on Adobe from $420.00 to $405.00 and set an "overweight" rating on the stock in a research report on Monday, March 9th. Sanford C. Bernstein set a $447.00 price objective on Adobe and gave the company an "outperform" rating in a research note on Friday, March 13th. BMO Capital Markets decreased 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. Finally, Robert W. Baird set a $350.00 target price on Adobe in a research note on Wednesday, January 14th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, fourteen have assigned a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat, Adobe has an average rating of "Hold" and a consensus price target of $343.88.

Insider Buying and Selling at Adobe

In related 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 transaction, the chief financial officer owned 41,995 shares of the company's stock, valued at $12,382,225.75. This represents a 3.77% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.20% of the stock is currently owned by company insiders.

Adobe Company 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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