Bank of New York Mellon Corp Invests $954.47 Million in Adobe Inc. $ADBE

Key Points

• Bank of New York Mellon acquired 4.66 million Adobe shares worth approximately $954.5 million, representing a 1.17% stake; institutional investors collectively own 81.79% of the company.
• Adobe’s AI strategy is attracting investor interest as Firefly expands into music, voiceovers and sound effects, but analyst sentiment remains cautious. The stock has an average “Hold” rating, while Bank of America maintained an “Underperform” rating despite raising its price target to $220.
• Adobe reported quarterly revenue of $6.62 billion, up 12.7% year over year, and EPS of $5.96, exceeding analyst expectations. Shares opened at $272.22, with a market capitalization of approximately $108.2 billion.

Bank of New York Mellon Corp bought a new stake in Adobe Inc. (NASDAQ:ADBE - Free Report) in the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor bought 4,655,489 shares of the software company's stock, valued at approximately $954,468,000. Bank of New York Mellon Corp owned 1.17% of Adobe as of its most recent SEC filing.

A number of other hedge funds have also recently added to or reduced their stakes in ADBE. SWAN Capital LLC raised its position in Adobe by 43.1% in the 3rd quarter. SWAN Capital LLC now owns 103 shares of the software company's stock valued at $36,000 after purchasing an additional 31 shares during the last quarter. Logan Capital Management Inc. raised its holdings in shares of Adobe by 0.3% in the third quarter. Logan Capital Management Inc. now owns 9,789 shares of the software company's stock valued at $3,453,000 after buying an additional 32 shares during the last quarter. Vista Capital Partners Inc. boosted its stake in shares of Adobe by 5.8% during the second quarter. Vista Capital Partners Inc. now owns 624 shares of the software company's stock worth $241,000 after buying an additional 34 shares during the period. Klingman & Associates LLC grew its holdings in shares of Adobe by 3.5% during the fourth quarter. Klingman & Associates LLC now owns 1,104 shares of the software company's stock worth $386,000 after buying an additional 37 shares during the last quarter. Finally, WPG Advisers LLC increased its position in Adobe by 45.9% in the 4th quarter. WPG Advisers LLC now owns 124 shares of the software company's stock valued at $43,000 after acquiring an additional 39 shares during the period. Hedge funds and other institutional investors own 81.79% of the company's stock.

More Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Expanded Firefly AI capabilities: Adobe made Firefly’s AI-generated music, voiceovers, speech and sound-effects tools generally available. The production-oriented features could strengthen Adobe’s position in creative software, increase user engagement and create additional monetization opportunities. Adobe Firefly adds AI music, voiceovers and sound effects
• Positive Sentiment: Improving AI investor sentiment: Bank of America raised its price target for Adobe, citing the company’s potential to monetize artificial intelligence. This reflects growing optimism that Adobe’s broad creative and document ecosystem can benefit from AI demand. ServiceNow, Adobe, Workday stocks get BofA PT boost
• Positive Sentiment: Recovery thesis remains intact: Recent commentary highlights Adobe’s relatively low valuation, strong free-cash-flow generation and potential for a sustained recovery as its AI strategy develops. Another analysis describes the shares as undervalued despite the recent rally. Adobe: Strong Recovery Is Just Beginning
• Neutral Sentiment: AI strategy is still being evaluated: Adobe is broadening access to AI tools through a freemium approach and has paused price increases to expand its user base. The strategy may support double-digit recurring-revenue growth, but investors need proof that wider adoption will translate into durable paid revenue. Is Adobe Below Fair Value On Its Freemium AI Push?
• Negative Sentiment: Conflicting Bank of America signal: Although BofA increased its target from $190 to $220, it retained an “underperform” rating. The target remains below the prevailing share price, signaling concern that Adobe’s AI progress may not yet justify the stock’s recovery. Benzinga analyst update

Analyst Ratings Changes

ADBE has been the subject of a number of recent research reports. Oppenheimer reaffirmed a "market perform" rating on shares of Adobe in a research report on Friday, June 12th. Citigroup restated a "market perform" rating on shares of Adobe in a research note on Friday, June 12th. UBS Group downgraded Adobe from a "buy" rating to an "equal weight" rating in a report on Tuesday, July 21st. Evercore set a $225.00 price objective on shares of Adobe and gave the company an "in-line" rating in a research report on Friday, June 12th. Finally, CLSA started coverage on shares of Adobe in a research report on Monday, July 20th. They set an "outperform" rating and a $300.00 price objective for the company. Seven research analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $270.96.

Insider Transactions at Adobe

In related news, Director David A. Ricks bought 10,000 shares of the company's stock in a transaction on Thursday, June 25th. The stock was bought at an average cost of $194.51 per share, with a total value of $1,945,100.00. Following the completion of the acquisition, the director owned 17,655 shares in the company, valued at approximately $3,434,074.05. This represents a 130.63% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CAO Jillian Forusz sold 416 shares of Adobe stock in a transaction that occurred on Wednesday, July 29th. The shares were 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 approximately $1,010,797.92. The trade was a 9.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.20% of the company's stock.

Adobe Stock Down 0.1%

ADBE opened at $272.22 on Friday. 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 Inc. has a 12 month low of $190.12 and a 12 month high of $370.86. The stock has a market capitalization of $108.21 billion, a P/E ratio of 15.57, a P/E/G ratio of 0.92 and a beta of 1.40. The business has a 50 day simple moving average of $231.18 and a 200-day simple moving average of $244.78.

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 (EPS) for the quarter, topping the consensus estimate 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 analysts' expectations of $6.45 billion. During the same quarter in the prior year, the business posted $5.06 earnings per share. Adobe'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. On average, equities analysts anticipate that Adobe Inc. will post 19.81 earnings per share for the current fiscal year.

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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