Adobe Inc. $ADBE Shares Sold by The Manufacturers Life Insurance Company

Key Points

• Manulife reduced its Adobe stake by 0.6%, selling 9,382 shares and retaining 1.61 million shares valued at approximately $392.3 million. Institutional investors and hedge funds collectively own 81.79% of Adobe.
• Adobe exceeded quarterly expectations, reporting $5.96 in EPS versus $5.82 expected and $6.62 billion in revenue, up 12.7% year over year. The company also authorized a $25 billion share-repurchase program, potentially covering up to 24.9% of outstanding shares.
• Wall Street’s consensus rating remains “Hold”, with seven Buy, 21 Hold, and six Sell ratings and an average price target of $271.30. Recent analyst views range from a $300 outperform target to downgrades and neutral ratings.

The Manufacturers Life Insurance Company lowered its holdings in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 0.6% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 1,613,818 shares of the software company's stock after selling 9,382 shares during the quarter. The Manufacturers Life Insurance Company owned approximately 0.40% of Adobe worth $392,286,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of ADBE. Western Pacific Wealth Management LP acquired a new stake in Adobe in the 4th quarter valued at $26,000. Measured Wealth Private Client Group LLC acquired a new position in Adobe during the third quarter worth $26,000. Marquette Asset Management LLC raised its position in Adobe by 72.3% during the fourth quarter. Marquette Asset Management LLC now owns 81 shares of the software company's stock worth $28,000 after acquiring an additional 34 shares during the period. TrustBank purchased a new position in Adobe during the fourth quarter valued at $28,000. Finally, Lloyd Advisory Services LLC. purchased a new position in Adobe during the fourth quarter valued at $31,000. 81.79% of the stock is owned by institutional investors and hedge funds.

Adobe Price Performance

Shares of ADBE stock opened at $237.75 on Tuesday. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.75 and a quick ratio of 0.75. The firm's 50-day moving average is $226.42 and its two-hundred day moving average is $250.59. Adobe Inc. has a 12 month low of $190.12 and a 12 month high of $376.16. The company has a market capitalization of $94.51 billion, a PE ratio of 13.60, a price-to-earnings-growth ratio of 0.76 and a beta of 1.43.

Adobe (NASDAQ:ADBE - Get Free Report) last posted its quarterly earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share for the quarter, beating the consensus estimate of $5.82 by $0.14. The business had revenue of $6.62 billion during the quarter, compared to analysts' expectations of $6.45 billion. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The business's revenue for the quarter was up 12.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $5.06 EPS. 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 predict that Adobe Inc. will post 19.81 earnings per share for the current year.

Adobe declared that its board has approved a share buyback plan on Tuesday, April 21st that authorizes the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization authorizes the software company to reacquire up to 24.9% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on ADBE. Weiss Ratings reissued a "sell (d+)" rating on shares of Adobe in a research note on Wednesday, June 3rd. BTIG Research began coverage on shares of Adobe in a research note on Monday, April 13th. They issued a "neutral" rating on the stock. CLSA assumed coverage on Adobe in a report on Monday, July 20th. They issued an "outperform" rating and a $300.00 price objective on the stock. UBS Group lowered Adobe from a "buy" rating to an "equal weight" rating in a research note on Tuesday, July 21st. Finally, HSBC raised Adobe from a "hold" rating to a "buy" rating and increased their target price for the company from $282.00 to $308.00 in a report on Thursday, July 2nd. Seven research analysts have rated the stock with a Buy rating, twenty-one have assigned a Hold rating and six have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $271.30.

Insider Activity at Adobe

In other news, CAO Jillian Forusz sold 755 shares of the company's stock in a transaction 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 transaction, the chief accounting officer owned 3,521 shares of the company's stock, valued at $867,046.25. This represents a 17.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director David A. Ricks purchased 10,000 shares of the stock in a transaction dated Thursday, June 25th. The shares were acquired at an average price 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 approximately $3,434,074.05. This trade represents a 130.63% increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate 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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