Adobe Inc. $ADBE Stock: Skylands Capital LLC Decreases Holdings

Key Points

• Skylands Capital cut its Adobe stake by 39.3% in the third quarter, selling 19,280 shares and retaining 29,805 shares valued at approximately $7.15 million. Institutional investors and hedge funds collectively own 81.79% of Adobe.
• Adobe reported quarterly revenue of $6.76 billion, up 12.9% year over year, and EPS of $6.13, exceeding estimates; the company maintained fiscal 2026 earnings guidance.
• Investor sentiment remains mixed: Adobe is expanding AI partnerships and benefiting from digital-signature growth, but concerns about slowing growth, generative-AI disruption and competitive pressure persist. Analysts’ consensus rating is Hold, with a $283.90 average price target.

Skylands Capital LLC lessened its holdings in Adobe Inc. (NASDAQ:ADBE - Free Report) by 39.3% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 29,805 shares of the software company's stock after selling 19,280 shares during the quarter. Skylands Capital LLC's holdings in Adobe were worth $7,151,000 as of its most recent SEC filing.

A number of other hedge funds also recently made changes to their positions in ADBE. BlackRock Inc. acquired a new stake in shares of Adobe during the 2nd quarter valued at about $8,437,821,000. Arrowstreet Capital Limited Partnership grew its position in Adobe by 9.1% in the first quarter. Arrowstreet Capital Limited Partnership now owns 6,792,275 shares of the software company's stock valued at $1,651,066,000 after acquiring an additional 563,772 shares during the period. Amundi grew its position in Adobe by 11.0% in the second quarter. Amundi now owns 5,242,464 shares of the software company's stock valued at $1,074,810,000 after acquiring an additional 518,362 shares during the period. Primecap Management Co. CA acquired a new position in Adobe during the second quarter worth $1,071,668,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in Adobe by 0.4% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,045,547 shares of the software company's stock worth $1,034,438,000 after acquiring an additional 18,995 shares in the last quarter. Institutional investors and hedge funds own 81.79% of the company's stock.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe’s expanded partnership with NVIDIA adds next-generation GPU acceleration and AI features to its creative applications, potentially improving content-creation workflows and strengthening Adobe’s enterprise AI offering. The company is also working with Heathrow Airport on AI-powered customer-experience initiatives. Adobe Deepens AI Partnerships Across Creative and Customer Experience Tools
• Positive Sentiment: The digital-signature market is forecast to grow from $17.68 billion in 2026 to $66.26 billion by 2031. Adobe’s Acrobat and document-cloud products could benefit from rising demand tied to remote work, fraud prevention and data-privacy compliance, although the report also identifies high setup costs and interoperability as constraints. Digital Signature Market Forecast to 2031
• Positive Sentiment: Some valuation-focused analysts view Adobe as a long-term value opportunity. Recent earnings also showed resilience, with earnings exceeding estimates and revenue growing year over year, while the company maintained fiscal-year earnings guidance. Why Adobe Is a Top Value Stock for the Long Term
• Neutral Sentiment: Adobe is receiving increased investor attention following its quarterly results, with market participants focused on AI monetization, future growth and whether the company’s relatively low valuation adequately reflects those risks and opportunities. Adobe Buy, Sell, or Hold Post Q3 Earnings
• Neutral Sentiment: Adobe gained support in broader software trading as Salesforce retreated after announcing its major Braze acquisition, though this relative strength does not address Adobe’s own growth concerns. Salesforce Retreats After Braze Deal
• Negative Sentiment: Wells Fargo downgraded Adobe from Overweight to Underweight, adding direct analyst pressure and reinforcing concerns about slowing growth and competitive risks. Wells Fargo Downgrades Adobe
• Negative Sentiment: Commentary continues to question whether generative AI will weaken Adobe’s pricing power or make creative tools easier to replace. Adobe is identified as one of the software companies facing the most difficult structural questions as AI spending expands. The AI Buildout Is Only 15% Complete

Insider Transactions at Adobe

In other Adobe news, CEO Shantanu Narayen sold 74,500 shares of the business's stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $251.56, for a total value of $18,741,220.00. Following the completion of the transaction, the chief executive officer directly owned 289,224 shares of the company's stock, valued at approximately $72,757,189.44. The trade was a 20.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, 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 transaction, the chief accounting officer owned 3,824 shares in the company, valued at $1,010,797.92. The trade was a 9.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 125,416 shares of company stock valued at $31,454,466. Insiders own 0.20% of the company's stock.

Adobe Stock Performance

Shares of NASDAQ:ADBE opened at $255.06 on Thursday. Adobe Inc. has a twelve month low of $190.12 and a twelve month high of $363.70. The firm has a market cap of $99.27 billion, a PE ratio of 14.23, a price-to-earnings-growth ratio of 0.90 and a beta of 1.42. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.77 and a current ratio of 0.77. The business has a fifty day moving average of $255.84 and a 200-day moving average of $243.20.

Adobe (NASDAQ:ADBE - Get Free Report) last released its quarterly earnings results on Thursday, September 10th. The software company reported $6.13 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.08 by $0.05. Adobe had a return on equity of 65.65% and a net margin of 28.05%. The business had revenue of $6.76 billion during the quarter, compared to analysts' expectations of $6.69 billion. During the same period in the previous year, the business posted $5.31 earnings per share. The firm's revenue for the quarter was up 12.9% compared to the same quarter last year. Adobe has set its Q4 2026 guidance at 6.300-6.350 EPS and its FY 2026 guidance at 24.450-24.500 EPS. On average, equities research analysts predict that Adobe Inc. will post 20.01 EPS for the current fiscal year.

Wall Street Analyst Weigh In

ADBE has been the subject of a number of analyst reports. Oppenheimer reissued a "market perform" rating on shares of Adobe in a report on Tuesday, September 8th. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $315.00 target price on shares of Adobe in a report on Friday, September 11th. DA Davidson increased their target price on shares of Adobe from $250.00 to $290.00 and gave the stock a "buy" rating in a research report on Monday, September 14th. Citigroup reiterated a "market perform" rating on shares of Adobe in a research report on Friday, September 11th. Finally, CLSA began coverage on shares of Adobe in a report on Monday, July 20th. They set an "outperform" rating and a $300.00 price target for the company. Nine research analysts have rated the stock with a Buy rating, twenty have assigned a Hold rating and seven have given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $283.90.

Adobe Profile

Adobe Inc is a global software company that develops digital tools for creative professionals, businesses, marketers, and individual users. Its products help customers create, edit, publish, manage, and measure digital content across websites, mobile applications, documents, and other media.

The company's Creative Cloud portfolio includes applications such as Photoshop, Illustrator, InDesign, Premiere Pro, and Acrobat. Adobe also offers Document Cloud, which provides tools for creating, editing, sharing, signing, and managing digital documents, and Experience Cloud, a suite of solutions for digital marketing, analytics, commerce, customer journeys, and content management.

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