Arax Advisory Partners Sells 32,316 Shares of Adobe Inc. $ADBE

Key Points

• Arax Advisory Partners sharply reduced its Adobe stake in the fourth quarter, selling 32,316 shares and cutting its position by 85.9% to 5,325 shares valued at about $1.83 million.
• Adobe’s latest earnings topped expectations, with Q2 EPS of $5.96 and revenue of $6.62 billion both beating estimates, while the company also raised guidance for FY2026 and Q3 2026.
• Sentiment remains mixed despite the beat: Adobe is trading well below its 52-week high and has drawn both bullish “undervalued” commentary and bearish concerns about slower growth and AI monetization, even as it continues a $25 billion share buyback program.

Arax Advisory Partners trimmed its position in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 85.9% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 5,325 shares of the software company's stock after selling 32,316 shares during the quarter. Arax Advisory Partners' holdings in Adobe were worth $1,831,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also recently added to or reduced their stakes in ADBE. Norges Bank bought a new stake in Adobe during the fourth quarter worth about $2,275,165,000. Arrowstreet Capital Limited Partnership grew its stake in Adobe by 53.3% during 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 last quarter. Dodge & Cox grew its stake in Adobe by 8,006.6% during the third quarter. Dodge & Cox now owns 1,593,506 shares of the software company's stock worth $562,109,000 after buying an additional 1,573,849 shares during the last quarter. AQR Capital Management LLC grew its stake in Adobe by 55.2% during the third quarter. AQR Capital Management LLC now owns 2,587,399 shares of the software company's stock worth $912,705,000 after buying an additional 920,353 shares during the last quarter. Finally, Amundi grew its stake in Adobe by 17.9% during the third quarter. Amundi now owns 4,888,283 shares of the software company's stock worth $1,711,583,000 after buying an additional 742,646 shares during the last quarter. 81.79% of the stock is owned by institutional investors.

Key Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Several analysts and market commentators argue Adobe looks unusually cheap after the selloff, citing valuation below 10x earnings, strong Q2 results, and raised guidance as reasons the stock could recover. Article Title
• Positive Sentiment: Articles from 247WallSt, Seeking Alpha, and other outlets highlight the gap between Adobe’s strong fundamentals and its depressed share price, with some calling it a buying opportunity and assigning significant upside targets. Article Title
• Positive Sentiment: AI product adoption remains a support for the bull case, with reports saying Adobe’s AI tools such as Firefly are gaining users, even if the company still needs to convert that usage into stronger revenue growth. Article Title
• Neutral Sentiment: Some coverage frames the stock as undervalued or a “bargain,” but this is mostly valuation commentary rather than a fresh operational catalyst. Article Title
• Negative Sentiment: Bearish commentary continues to weigh on sentiment, with analysts and options-market-based reports warning that investors still doubt Adobe’s growth durability and AI monetization, which may explain why the stock remains under pressure despite the earnings beat. Article Title
• Negative Sentiment: Ongoing headlines about a “continued deceleration,” “value trap” concerns, and fears around strategic transition risk and leadership changes suggest investors are still skeptical that Adobe can reaccelerate growth soon. Article Title

Adobe Price Performance

Shares of ADBE stock opened at $206.36 on Tuesday. Adobe Inc. has a 52-week low of $196.90 and a 52-week high of $405.00. The stock has a market cap of $83.41 billion, a PE ratio of 11.81, a PEG ratio of 0.80 and a beta of 1.42. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.91 and a current ratio of 0.75. The firm's 50 day moving average price is $243.81 and its two-hundred day moving average price is $277.53.

Adobe (NASDAQ:ADBE - Get Free Report) last announced its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.82 by $0.14. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The firm had revenue of $6.62 billion for the quarter, compared to analysts' expectations of $6.45 billion. During the same period last year, the firm earned $5.06 earnings per share. The business's revenue for the quarter was up 12.7% on a year-over-year basis. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. As a group, analysts forecast that Adobe Inc. will post 19.14 EPS for the current year.

Adobe announced that its board has authorized a stock buyback program on Tuesday, April 21st that permits the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization permits the software company to repurchase up to 24.9% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's board believes its stock is undervalued.

Analyst Ratings Changes

Several analysts have weighed in on ADBE shares. Barclays decreased their price objective on shares of Adobe from $275.00 to $250.00 and set an "equal weight" rating on the stock in a research note on Friday. William Blair cut shares of Adobe from an "outperform" rating to a "market perform" rating in a research note on Thursday, March 26th. Morgan Stanley decreased their price target on shares of Adobe from $425.00 to $365.00 and set an "equal weight" rating on the stock in a research note on Friday, March 13th. Argus reissued a "hold" rating on shares of Adobe in a research note on Monday, March 16th. Finally, Citigroup reissued a "market perform" rating on shares of Adobe in a research note on Friday. Five investment analysts have rated the stock with a Buy rating, twenty have issued a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $278.16.

Insider Buying and Selling at Adobe

In other Adobe news, CFO Daniel Durn sold 1,336 shares of the firm's stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $248.02, for a total value of $331,354.72. Following the transaction, the chief financial officer directly owned 42,833 shares of the company's stock, valued at approximately $10,623,440.66. This trade represents a 3.02% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed 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 shares were sold at an average price of $243.54, for a total transaction of $18,265,500.00. Following the completion of the transaction, the chief executive officer directly owned 359,538 shares in the company, valued at approximately $87,561,884.52. The trade was a 17.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 77,091 shares of company stock valued at $18,782,773. 0.20% of the stock is currently owned by 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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