AdvisorShares Investments LLC Boosts Stake in Adobe Inc. $ADBE

Key Points

• AdvisorShares Investments LLC increased its stake in Adobe by 37.3% in the fourth quarter, buying 5,943 more shares and bringing its total holding to 21,890 shares worth about $7.66 million.
• Adobe reported better-than-expected quarterly results, with EPS of $6.06 and revenue of $6.40 billion, both ahead of analyst estimates. The company also raised guidance for FY 2026 and Q2 2026.
• Adobe’s board authorized a $25 billion share buyback, covering up to 24.9% of shares outstanding, even as several analysts trimmed price targets and the consensus rating remains “Hold.”

AdvisorShares Investments LLC raised its position in Adobe Inc. (NASDAQ:ADBE - Free Report) by 37.3% during the fourth quarter, according to the company in its most recent disclosure with the SEC. The firm owned 21,890 shares of the software company's stock after acquiring an additional 5,943 shares during the quarter. Adobe makes up 1.3% of AdvisorShares Investments LLC's portfolio, making the stock its 10th biggest holding. AdvisorShares Investments LLC's holdings in Adobe were worth $7,661,000 at the end of the most recent quarter.

A number of other institutional investors also recently bought and sold shares of the company. Vanguard Group Inc. lifted its holdings in Adobe by 0.8% in the third quarter. Vanguard Group Inc. now owns 41,369,395 shares of the software company's stock valued at $14,593,054,000 after acquiring an additional 344,816 shares during the period. State Street Corp raised its stake in shares of Adobe by 1.7% in the third quarter. State Street Corp now owns 20,632,009 shares of the software company's stock worth $7,277,941,000 after buying an additional 352,448 shares during the period. Geode Capital Management LLC raised its stake in shares of Adobe by 3.7% in the fourth quarter. Geode Capital Management LLC now owns 11,531,678 shares of the software company's stock worth $4,027,170,000 after buying an additional 414,049 shares during the period. Norges Bank bought a new position in shares of Adobe in the fourth quarter worth about $2,275,165,000. Finally, Arrowstreet Capital Limited Partnership raised its stake in shares of Adobe by 53.3% in the third quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company's stock worth $1,981,448,000 after buying an additional 1,952,994 shares during the period. Institutional investors own 81.79% of the company's stock.

Adobe Price Performance

Shares of Adobe stock opened at $259.21 on Friday. The stock has a market cap of $104.77 billion, a price-to-earnings ratio of 15.10, a price-to-earnings-growth ratio of 0.94 and a beta of 1.42. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.91 and a current ratio of 0.91. The stock has a 50 day moving average price of $244.11 and a 200-day moving average price of $284.39. Adobe Inc. has a one year low of $224.13 and a one year high of $421.48.

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

Adobe announced that its Board of Directors has authorized a share buyback plan on Tuesday, April 21st that permits the company to buyback $25.00 billion in shares. This buyback authorization permits the software company to purchase up to 24.9% of its shares through open market purchases. Shares buyback plans are often an indication that the company's leadership believes its stock is undervalued.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe is seeing renewed buying ahead of its expected June 11 earnings release, with investors likely adjusting positions and leaning into a valuation rebound after a prolonged reset in software stocks. Adobe shares rise as investors position ahead of next earnings and lean into a valuation rebound
• Positive Sentiment: Recent commentary highlighted Adobe’s AI strategy, including AI agents and Acrobat becoming more of an AI workspace, which supports the view that Adobe can adapt its products to new workflows and defend its enterprise software franchise. Adobe Acrobat Studio review: Acrobat becomes an AI workspace
• Positive Sentiment: Adobe Analytics was named a “Champion” in Info-Tech Research Group’s 2026 Digital Analytics Data Quadrant, reinforcing the strength of Adobe’s analytics and customer-experience products. Top Digital Analytics Platforms Named 2026 Champions in Info-Tech Research Group's Data Quadrant Report

Analysts Set New Price Targets

Several research firms have recently commented on ADBE. Royal Bank Of Canada decreased their price objective on Adobe from $400.00 to $350.00 and set an "outperform" rating on the stock in a research note on Friday, April 17th. Dbs Bank downgraded Adobe from a "moderate buy" rating to a "hold" rating in a research note on Tuesday, May 19th. Stifel Nicolaus decreased their target price on Adobe from $450.00 to $400.00 and set a "buy" rating on the stock in a research note on Friday, March 13th. BMO Capital Markets decreased their target price on Adobe from $375.00 to $285.00 and set a "market perform" rating on the stock in a research note on Friday, March 13th. Finally, JPMorgan Chase & Co. dropped their price objective on shares of Adobe from $520.00 to $420.00 and set an "overweight" rating for the company in a report on Friday, March 13th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, seventeen have given a Hold rating and five have issued a Sell rating to the company's stock. According to MarketBeat.com, Adobe currently has an average rating of "Hold" and a consensus target price of $338.15.

Insider Buying and Selling

In related news, 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 transaction of $185,918.75. Following the completion of the sale, the chief accounting officer directly owned 3,521 shares of the company's stock, valued at approximately $867,046.25. This trade represents a 17.66% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, 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 directly owned 359,538 shares of the company's stock, valued at $87,561,884.52. This represents a 17.26% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders 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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