Arizona State Retirement System Sells 5,462 Shares of Adobe Inc. $ADBE

Key Points

• Arizona State Retirement System trimmed its Adobe stake by 4.4%, selling 5,462 shares in Q4 and now holds 118,419 shares worth about $41.45 million.
• Adobe beat the quarter's estimates with $6.06 EPS vs. $5.87 expected and revenue of $6.40 billion vs. $6.28 billion, with revenue up 12% year‑over‑year and FY2026 EPS guidance set at 23.3–23.5.
• The Board approved a $25 billion share repurchase (authorizing buybacks of up to 24.9% of shares through April 2030), yet the stock has recently fallen about 6.6% amid mixed analyst sentiment and competitive concerns.

Arizona State Retirement System reduced its stake in Adobe Inc. (NASDAQ:ADBE - Free Report) by 4.4% during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 118,419 shares of the software company's stock after selling 5,462 shares during the period. Arizona State Retirement System's holdings in Adobe were worth $41,445,000 as of its most recent SEC filing.

Several other large investors also recently bought and sold shares of ADBE. Brighton Jones LLC increased its position in Adobe by 2.1% in the fourth quarter. Brighton Jones LLC now owns 8,068 shares of the software company's stock worth $3,588,000 after purchasing an additional 167 shares during the last quarter. Sivia Capital Partners LLC increased its position in Adobe by 25.5% in the second 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 last quarter. United Bank increased its position in Adobe by 12.8% in the second 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. increased its position in Adobe by 7.8% in the second 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, Gamco Investors INC. ET AL increased its position in Adobe by 190.6% in the second quarter. Gamco Investors INC. ET AL now owns 2,764 shares of the software company's stock worth $1,069,000 after purchasing an additional 1,813 shares during the last quarter. Institutional investors own 81.79% of the company's stock.

Adobe Trading Down 6.6%

ADBE opened at $238.98 on Friday. The stock has a market cap of $96.60 billion, a price-to-earnings ratio of 13.92, a P/E/G ratio of 1.00 and a beta of 1.52. The stock's 50 day moving average price is $252.22 and its 200-day moving average price is $300.78. Adobe Inc. has a one year low of $224.13 and a one year high of $422.95. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.91 and a current ratio of 0.91.

Adobe (NASDAQ:ADBE - Get Free Report) last released its earnings results on Thursday, March 12th. The software company reported $6.06 EPS for the quarter, beating analysts' consensus estimates of $5.87 by $0.19. The firm had revenue of $6.40 billion for 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 prior year, the firm posted $5.08 earnings per share. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. On average, equities analysts forecast that Adobe Inc. will post 19.14 EPS for the current year.

Adobe declared that its Board of Directors has approved a share buyback program on Tuesday, April 21st that authorizes the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization authorizes the software company to repurchase up to 24.9% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its shares are undervalued.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the company. HSBC set a $302.00 price objective on Adobe in a research note on Friday, February 13th. Citigroup reissued a "neutral" rating on shares of Adobe in a research note on Friday, April 10th. Wells Fargo & Company cut their target price on Adobe from $420.00 to $405.00 and set an "overweight" rating on the stock in a research report on Monday, March 9th. Oppenheimer reissued a "market perform" rating on shares of Adobe in a research report on Friday, March 13th. Finally, William Blair downgraded Adobe from an "outperform" rating to a "market perform" rating in a research report on Thursday, March 26th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, fifteen have issued a Hold rating and five have issued a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $339.88.

Trending Headlines about Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Board-approved $25 billion share repurchase (through April 2030) signals management confidence and increases capital return capacity — a near-term support for the share price. Adobe Announces New $25 Billion Stock Repurchase Program
• Positive Sentiment: Adobe showcased agentic AI products (CX Enterprise, GenStudio/Firefly upgrades) and high‑profile partner endorsements — investment case: new enterprise AI revenue streams and deeper platform positioning. CNBC: Adobe tries to climb out of the software stock abyss
• Neutral Sentiment: Adobe plans outcome‑based pricing for some AI offerings — could boost monetization if clients realize measurable ROI, but adoption and contract scale remain uncertain. Adobe Plans Outcome-Based Pricing for New AI Product Suite
• Neutral Sentiment: Analysts are mixed: some praise the buyback/AI positioning while others keep Hold/Neutral ratings citing valuation and competitive risk — leaves guidance impact and re‑rating uncertain. TipRanks: Hold rating commentary
• Negative Sentiment: Sectorwide weakness driven by ServiceNow and IBM results revived AI disruption fears across enterprise software — that broader selloff pressured Adobe despite company‑specific positives. ServiceNow and IBM earnings reignite AI fears
• Negative Sentiment: Competitive threats from new entrants and rival AI tools (e.g., Anthropic’s Claude Design, tools aimed at designers) are keeping long‑term growth and pricing power in question. Fool: Competition and Figma
• Negative Sentiment: Insider selling (CFO disclosed a modest sale) and recent downward analyst target revisions add to cautious investor sentiment amid the pullback. SEC Form 4 — Daniel Durn

Insider Buying and Selling

In other Adobe news, CFO Daniel Durn sold 1,646 shares of the company's stock in a transaction dated Tuesday, January 27th. The shares were sold at an average price of $294.85, for a total value of $485,323.10. Following the transaction, the chief financial officer directly owned 41,995 shares in the company, valued at $12,382,225.75. This represents a 3.77% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.20% of the stock is owned by corporate insiders.

Adobe 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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