Bank of America Corp DE Makes New $493.83 Million Investment in Adobe Inc. $ADBE

Key Points

• Bank of America purchased 2.41 million Adobe shares worth approximately $493.8 million in the second quarter, giving it a 0.61% stake. Institutional investors collectively own 81.79% of Adobe.
• Adobe reported quarterly revenue of $6.76 billion and adjusted EPS of $6.13, both ahead of analyst expectations, with revenue up 12.9% year over year. Management issued fiscal 2026 EPS guidance of $24.45–$24.50.
• Despite strong profitability and AI-related growth, analyst sentiment remains cautious: Adobe has a consensus “Hold” rating and a $282.68 price target, with concerns about slower recurring-revenue growth, competition and CEO-transition uncertainty.

Bank of America Corp DE purchased a new stake in Adobe Inc. (NASDAQ:ADBE - Free Report) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 2,408,673 shares of the software company's stock, valued at approximately $493,826,000. Bank of America Corp DE owned approximately 0.61% of Adobe as of its most recent SEC filing.

Several other hedge funds also recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new position in shares of Adobe in the 2nd quarter valued at $8,437,821,000. Geode Capital Management LLC grew its stake in Adobe by 3.7% during the 4th quarter. Geode Capital Management LLC now owns 11,531,678 shares of the software company's stock worth $4,027,170,000 after buying an additional 414,049 shares during the last quarter. Norges Bank purchased a new position in Adobe during the 4th quarter worth approximately $2,275,165,000. Arrowstreet Capital Limited Partnership increased its position in Adobe by 10.9% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 6,228,503 shares of the software company's stock worth $2,179,914,000 after buying an additional 611,358 shares during the period. Finally, Invesco Ltd. increased its position in Adobe by 6.2% during the fourth quarter. Invesco Ltd. now owns 5,119,025 shares of the software company's stock worth $1,791,607,000 after buying an additional 297,337 shares during the period. 81.79% of the stock is currently owned by hedge funds and other institutional investors.

Adobe Trading Down 3.0%

NASDAQ:ADBE opened at $257.76 on Wednesday. The company has a market capitalization of $102.46 billion, a PE ratio of 14.38, a price-to-earnings-growth ratio of 0.92 and a beta of 1.42. Adobe Inc. has a 52-week low of $190.12 and a 52-week high of $370.86. The stock has a fifty day simple moving average of $255.22 and a 200-day simple moving average of $245.70. The company has a quick ratio of 0.75, a current ratio of 0.77 and a debt-to-equity ratio of 0.41.

Adobe (NASDAQ:ADBE - Get Free Report) last announced its earnings results on Thursday, September 10th. The software company reported $6.13 EPS for the quarter, beating analysts' consensus estimates of $6.08 by $0.05. The firm had revenue of $6.76 billion for the quarter, compared to analysts' expectations of $6.69 billion. Adobe had a return on equity of 65.65% and a net margin of 28.05%.Adobe's quarterly revenue was up 12.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $5.31 EPS. Adobe has set its Q4 2026 guidance at 6.300-6.350 EPS and its FY 2026 guidance at 24.450-24.500 EPS. On average, equities research analysts expect that Adobe Inc. will post 20.03 earnings per share for the current fiscal year.

More Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe’s fiscal Q3 2026 revenue increased 13% year over year to $6.76 billion, exceeding expectations, while adjusted EPS of $6.13 also beat consensus. Management raised its fiscal 2026 revenue and earnings targets, reinforcing the company’s cash-generation and profitability profile. Should You Buy Adobe Stock At $260?
• Positive Sentiment: AI-first annualized recurring revenue reportedly surged more than 150%, and Adobe’s new AI-powered Student Spaces features could broaden product adoption. These developments helped Adobe shares rise alongside enterprise software stocks as investors rotated away from AI hardware and semiconductor names. Adobe Stock Jumps 4.2% as Investors Reassess the AI Software Trade
• Positive Sentiment: Some commentators view Adobe as significantly undervalued after its recent decline, citing free-cash-flow margins above 40% and the possibility of a short squeeze if sentiment improves. DA Davidson also raised its price target to $290 and maintained a buy rating. Jim Cramer Says Adobe Could Be a Short-Squeeze Candidate
• Neutral Sentiment: Investor debate centers on whether Adobe’s large user base and AI product expansion will translate into stronger monetization. The company has about $27.5 billion in annualized recurring revenue, but analysts are waiting for clearer evidence that AI adoption accelerates growth.
• Negative Sentiment: Adobe maintained its fiscal 2026 ending ARR growth target at 10.2%, while new ARR and forward guidance remained a concern. Analysts also cited competition, the freemium strategy and uncertainty surrounding the CEO transition as reasons for caution. Analysts Are Punting Their Calls Into the Next Quarter After Adobe’s Mixed Earnings
• Negative Sentiment: KeyCorp reiterated an “Underweight” rating and a $195 price target, well below recent trading levels, reflecting concern that earnings growth may not offset slower recurring-revenue expansion. Recent insider activity has also consisted entirely of sales, including sales by CEO Shantanu Narayen. Adobe analyst estimates and market data

Analyst Upgrades and Downgrades

Several research firms recently commented on ADBE. Citigroup reiterated a "market perform" rating on shares of Adobe in a research report on Friday. Wolfe Research lowered shares of Adobe from an "outperform" rating to a "peer perform" rating in a research note on Friday, June 12th. Citizens Jmp reaffirmed a "market perform" rating on shares of Adobe in a report on Friday, September 11th. Piper Sandler increased their target price on shares of Adobe from $240.00 to $250.00 and gave the stock a "neutral" rating in a research note on Friday. Finally, Robert W. Baird raised their price target on Adobe from $230.00 to $250.00 and gave the stock a "neutral" rating in a report on Friday, September 11th. Seven investment analysts have rated the stock with a Buy rating, twenty-one have issued a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $282.68.

Insider Activity

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

Adobe Company Profile

Adobe Inc NASDAQ: ADBE develops software and services used for digital content creation, document management and digital experiences. The company serves creative professionals, marketers, enterprises, educators and consumers worldwide through subscription-based and cloud-enabled products.

Adobe's Creative Cloud portfolio includes applications such as Photoshop, Illustrator, InDesign, Premiere Pro and After Effects, along with related tools for photography, graphic design, video production and web development.

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