Arrowstreet Capital Limited Partnership Purchases 563,772 Shares of Adobe Inc. $ADBE

Key Points

• Arrowstreet Capital increased its Adobe stake by 9.1% in the first quarter, buying 563,772 more shares and bringing its holdings to 6.79 million shares valued at about $1.65 billion.
• Adobe reported better-than-expected quarterly results, with EPS of $5.96 and revenue of $6.62 billion, both ahead of analyst estimates. The company also raised attention with a new $25 billion share repurchase program.
• Sentiment remains mixed: several analysts cut ratings or price targets, and the stock has fallen sharply from its 52-week high amid concerns about AI monetization, subscription growth, and leadership changes.

Arrowstreet Capital Limited Partnership grew its position in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 9.1% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 6,792,275 shares of the software company's stock after buying an additional 563,772 shares during the quarter. Adobe accounts for 0.9% of Arrowstreet Capital Limited Partnership's portfolio, making the stock its 16th largest position. Arrowstreet Capital Limited Partnership owned about 1.68% of Adobe worth $1,651,066,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently made changes to their positions in the company. Measured Wealth Private Client Group LLC bought a new stake in shares of Adobe in the third quarter worth approximately $26,000. Western Pacific Wealth Management LP bought a new position in Adobe during the fourth quarter valued at approximately $26,000. Beacon Financial Strategies CORP purchased a new stake in Adobe in the fourth quarter worth approximately $28,000. Marquette Asset Management LLC boosted its holdings in Adobe by 72.3% in the fourth quarter. Marquette Asset Management LLC now owns 81 shares of the software company's stock worth $28,000 after purchasing an additional 34 shares during the last quarter. Finally, TrustBank bought a new stake in Adobe in the 4th quarter worth approximately $28,000. Institutional investors own 81.79% of the company's stock.

Adobe Price Performance

NASDAQ:ADBE opened at $212.17 on Friday. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 0.42. The business's 50-day simple moving average is $227.23 and its two-hundred day simple moving average is $252.03. The stock has a market cap of $84.34 billion, a PE ratio of 12.14, a P/E/G ratio of 0.73 and a beta of 1.43. Adobe Inc. has a 52 week low of $190.12 and a 52 week high of $376.16.

Adobe (NASDAQ:ADBE - Get Free Report) last released its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 earnings per share for the quarter, topping analysts' consensus estimates of $5.82 by $0.14. Adobe had a return on equity of 65.11% and a net margin of 28.69%.The firm had revenue of $6.62 billion during the quarter, compared to analyst estimates of $6.45 billion. During the same quarter in the prior year, the company posted $5.06 earnings per share. The business's quarterly revenue was up 12.7% compared to the same quarter last year. 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 19.81 EPS for the current fiscal year.

Adobe announced that its board has approved a share repurchase 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 usually a sign that the company's management believes its shares are undervalued.

Analyst Upgrades and Downgrades

ADBE has been the subject of a number of research reports. Royal Bank Of Canada decreased their target price on shares of Adobe from $350.00 to $285.00 and set an "outperform" rating for the company in a research note on Monday, June 8th. Morgan Stanley lowered Adobe from an "equal weight" rating to an "underweight" rating and cut their price objective for the stock from $365.00 to $240.00 in a report on Tuesday. Freedom Capital cut Adobe from a "strong-buy" rating to a "hold" rating in a research report on Friday, June 12th. JPMorgan Chase & Co. lowered their target price on Adobe from $420.00 to $340.00 and set an "overweight" rating on the stock in a report on Friday, June 12th. Finally, Oppenheimer reissued a "market perform" rating on shares of Adobe in a research report on Friday, June 12th. Seven research analysts have rated the stock with a Buy rating, twenty-one have assigned a Hold rating and six have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $271.30.

Insider Buying and Selling at Adobe

In related news, Director David A. Ricks bought 10,000 shares of the company's stock in a transaction that occurred on Thursday, June 25th. The stock was purchased at an average price of $194.51 per share, for a total transaction of $1,945,100.00. Following the completion of the transaction, the director owned 17,655 shares in the company, valued at $3,434,074.05. The trade was a 130.63% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, 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 transaction of $185,918.75. Following the transaction, the chief accounting officer owned 3,521 shares of the company's stock, valued at approximately $867,046.25. This represents a 17.66% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.20% of the company's stock.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Negative Sentiment: Morgan Stanley downgraded Adobe to underweight from equal-weight and cut its price target to $240 from $365, citing concerns that Adobe’s move toward free basic services could pressure subscription revenue, along with leadership uncertainty and other strategic shifts. Why Adobe (ADBE) Shares Are Sliding Today
• Negative Sentiment: Zacks said Adobe’s large pullback from its 52-week high reflects investor doubts about AI monetization, slower near-term ARR growth, and ongoing leadership changes despite strong product adoption. Adobe Drops 40% From 52-Week High: Buy, Sell or Hold the Stock?
• Negative Sentiment: Adobe’s stock also underperformed peers recently, reinforcing the view that sentiment remains weak relative to other software names. Adobe Inc. stock underperforms Wednesday when compared to competitors
• Neutral Sentiment: CLSA reportedly initiated coverage with a moderate buy rating, which offers a counterpoint to the bearish calls but has not yet offset the broader negative sentiment. Adobe NASDAQ: ADBE Earns Moderate Buy Rating from Analysts at CLSA
• Neutral Sentiment: Insider activity was mixed across the tech sector, with one note highlighting that Eli Lilly CEO David Ricks bought Adobe shares, though this is not enough on its own to change the near-term narrative. Insider Moves Are Sending Mixed Signals Across the Tech Sector

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.