Bank of America Corp DE Lowers Position in Adobe Inc. $ADBE

Key Points

• Bank of America reduced its Adobe stake by 12.7% in the first quarter, selling 376,530 shares and retaining 2.59 million shares valued at approximately $630.7 million. Institutional investors still own 81.79% of Adobe.
• Adobe exceeded quarterly expectations with $5.96 in EPS and $6.62 billion in revenue, up 12.7% year over year. The company also authorized a $25 billion share-repurchase program, covering up to 24.9% of outstanding shares.
• Wall Street’s outlook remains mixed: Adobe has an overall “Hold” rating and an average price target of $271.30, while several analysts recently cut their targets. The company’s AI monetization prospects are viewed positively, but investors remain concerned about growth and AI-related disruption.

Bank of America Corp DE decreased its position in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 12.7% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 2,594,715 shares of the software company's stock after selling 376,530 shares during the quarter. Bank of America Corp DE owned 0.64% of Adobe worth $630,723,000 as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in the company. Western Pacific Wealth Management LP purchased a new position in shares of Adobe in the 4th quarter valued at about $26,000. Measured Wealth Private Client Group LLC purchased a new position in Adobe during the third quarter worth approximately $26,000. TrustBank acquired a new stake in Adobe in the fourth quarter valued at approximately $28,000. Lloyd Advisory Services LLC. acquired a new stake in Adobe in the fourth quarter valued at approximately $31,000. Finally, Sankala Group LLC purchased a new stake in shares of Adobe in the fourth quarter valued at approximately $31,000. 81.79% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

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

Adobe Price Performance

NASDAQ:ADBE opened at $250.41 on Friday. Adobe Inc. has a one year low of $190.12 and a one year high of $370.86. The stock has a market cap of $99.54 billion, a PE ratio of 14.33, a P/E/G ratio of 0.84 and a beta of 1.43. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.75 and a current ratio of 0.75. The stock has a 50 day moving average price of $226.69 and a 200 day moving average price of $248.84.

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. The company had revenue of $6.62 billion for the quarter, compared to analyst estimates of $6.45 billion. Adobe had a return on equity of 65.11% and a net margin of 28.69%.The firm's revenue for the quarter was up 12.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $5.06 earnings per share. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. Equities research analysts expect that Adobe Inc. will post 19.81 EPS for the current fiscal year.

Adobe announced that its board has initiated a stock repurchase program on Tuesday, April 21st that allows the company to buyback $25.00 billion in shares. This buyback authorization allows the software company to buy up to 24.9% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on ADBE shares. Wells Fargo & Company reduced their target price on Adobe from $330.00 to $250.00 and set an "overweight" rating for the company in a research note on Friday, June 12th. Jefferies Financial Group cut their price target on shares of Adobe from $290.00 to $230.00 and set a "hold" rating for the company in a report on Friday, June 12th. Robert W. Baird reduced their price objective on shares of Adobe from $270.00 to $230.00 and set a "neutral" rating for the company in a research report on Friday, June 12th. TD Cowen decreased 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, Phillip Securities lowered shares of Adobe from a "strong-buy" rating to a "hold" rating in a research report on Monday, June 29th. Seven research analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and six have issued a Sell rating to the company. According to data from MarketBeat.com, Adobe has an average rating of "Hold" and an average target price of $271.30.

Key Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe’s latest AI acquisition reportedly cleared Washington without significant regulatory obstacles, removing a potential deal risk and strengthening the company’s efforts to expand AI-powered creative tools. Adobe's latest AI acquisition just breezed through Washington
• Positive Sentiment: Recent commentary argues that AI is enhancing Adobe’s business rather than replacing it, potentially supporting new monetization opportunities, stronger customer engagement and a rebuilding of the company’s growth engine. Adobe’s latest quarterly results also showed roughly 13% year-over-year revenue growth and performance above analyst expectations. Adobe: How AI Is Enhancing Its Business, Not Killing It
• Positive Sentiment: Investors are also considering ways to participate in Adobe’s AI upside while hedging risks, suggesting that the stock remains a significant target for AI-related trading and positioning. As Adobe monetizes AI, here's a way to trade it and hedge against risks
• Neutral Sentiment: Analyst and investor views remain divided. Some see Adobe’s valuation and free-cash-flow generation as attractive, while others remain concerned about AI disruption, software-sector weakness and the need to restore faster growth. Adobe Stock Trades Below The Market on Earnings While Its Growth Engine Is Being Rebuilt
• Negative Sentiment: Adobe Chief Accounting Officer Jillian Forusz sold 416 shares worth approximately $110,000. The transaction was relatively small, but it adds to a pattern of insider selling that may weigh modestly on sentiment. SEC Form 4 filing
• Negative Sentiment: A reported collapse of a highly leveraged AI hedge fund and forced selling of AI-infrastructure positions could reinforce broader caution around crowded AI trades and software-sector volatility, although it does not directly affect Adobe’s operations. AI hedge fund collapses after margin calls

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.

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.