Aurora Investment Counsel Takes Position in Adobe Inc. $ADBE

Key Points

• Aurora Investment Counsel acquired 7,764 Adobe shares worth approximately $1.59 million in the second quarter. Institutional investors collectively own 81.79% of Adobe’s outstanding stock.
• Adobe reported quarterly EPS of $5.96 and revenue of $6.62 billion, exceeding analyst estimates, while revenue increased 12.7% year over year. The stock recently traded at $272.47, up 3.5%.
• Analyst sentiment remains mixed, with Adobe carrying an overall “Hold” rating and an average price target of $270.96; some firms have reduced their targets, while Bank of America maintained an “Underperform” rating despite raising its target.

Aurora Investment Counsel acquired a new position in Adobe Inc. (NASDAQ:ADBE - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 7,764 shares of the software company's stock, valued at approximately $1,592,000.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Edmond DE Rothschild Holding S.A. acquired a new stake in Adobe in the second quarter worth about $1,450,000. United Bank acquired a new position in shares of Adobe during the second quarter valued at about $295,000. Madison Asset Management LLC acquired a new position in shares of Adobe during the second quarter valued at about $7,105,000. Csenge Advisory Group purchased a new position in shares of Adobe in the 2nd quarter valued at approximately $245,000. Finally, Shepherd Financial Partners LLC purchased a new position in shares of Adobe in the 2nd quarter valued at approximately $523,000. 81.79% of the stock is currently owned by hedge funds and other institutional investors.

Adobe Stock Up 3.5%

ADBE stock opened at $272.47 on Thursday. The company has a market capitalization of $108.31 billion, a P/E ratio of 15.59, a price-to-earnings-growth ratio of 0.89 and a beta of 1.40. Adobe Inc. has a 12 month low of $190.12 and a 12 month high of $370.86. The firm's fifty day simple moving average is $230.10 and its 200-day simple moving average is $244.93. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.75 and a quick ratio of 0.75.

Adobe (NASDAQ:ADBE - Get Free Report) last issued its earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share (EPS) for the quarter, topping the consensus estimate 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 during the quarter, compared to analysts' expectations of $6.45 billion. During the same quarter last year, the company posted $5.06 earnings per share. The firm's 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, equities research analysts forecast that Adobe Inc. will post 19.81 earnings per share for the current year.

Insider Activity at Adobe

In related news, CAO Jillian Forusz sold 416 shares of the business's stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $264.33, for a total value of $109,961.28. Following the completion of the transaction, the chief accounting officer directly owned 3,824 shares in the company, valued at $1,010,797.92. The trade was a 9.81% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director David A. Ricks purchased 10,000 shares of the stock in a transaction that occurred on Thursday, June 25th. The shares were purchased at an average cost of $194.51 per share, for a total transaction of $1,945,100.00. Following the completion of the acquisition, the director directly owned 17,655 shares of the company's stock, valued at $3,434,074.05. This represents a 130.63% increase in their position. The SEC filing for this purchase provides additional information. 0.20% of the stock is owned by insiders.

More Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe’s recent rally has been supported by improving short-term momentum and a broader rotation out of semiconductor stocks into lagging technology names. The company is also viewed by some analysts as undervalued after its earlier decline. Netflix, Salesforce, and Adobe Rally as Investors Rotate Out of Semiconductors and Into Beaten Down Stocks Is It Too Late to Buy Adobe Inc After Rally? GF Value Says Undervalued
• Positive Sentiment: Adobe’s freemium strategy for AI-powered tools— including holding off on some price increases to expand its user base—could accelerate adoption and support the company’s goal of double-digit annual recurring-revenue growth. Analysts also continue to favor Adobe over DocuSign, citing its stronger competitive position. Is Adobe Below Fair Value On Its Freemium AI Push?
• Neutral Sentiment: A dispute involving Rebel Creamery’s packaging design created with Adobe Illustrator has led to a court-ordered rebrand and Rebel’s Chapter 11 filing. The matter concerns an Adobe software user and does not appear to create a material financial impact for Adobe. How a DIY Adobe Illustrator Design Landed Rebel Creamery in a $23.8 Million Fight
• Negative Sentiment: Bank of America raised its price target but retained an “underperform” rating. Its new target remains materially below Adobe’s recent trading level, signaling concern that the rally may have outpaced the company’s near-term fundamentals. Bank of America Raises Adobe Price Target While Maintaining Underperform Rating

Analyst Ratings Changes

Several research firms have weighed in on ADBE. Phillip Securities downgraded shares of Adobe from a "strong-buy" rating to a "hold" rating in a research report on Monday, June 29th. Wells Fargo & Company decreased their price target on shares of Adobe from $330.00 to $250.00 and set an "overweight" rating for the company in a report on Friday, June 12th. Mizuho lowered their price objective on shares of Adobe from $270.00 to $245.00 and set a "neutral" rating for the company in a research note on Friday, June 12th. TD Cowen dropped their price objective on shares of Adobe from $310.00 to $285.00 and set a "hold" rating on the stock in a report on Monday, June 8th. Finally, Citigroup 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 five have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $270.96.

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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