Bank of New York Mellon Corp Sells 295,359 Shares of Adobe Inc. $ADBE

Key Points

• Bank of New York Mellon cut its Adobe stake by 5% in the fourth quarter, selling 295,359 shares but still holding about 5.59 million shares valued near $1.96 billion.
• Adobe recently reported strong quarterly results, with EPS of $6.06 beating estimates and revenue of $6.40 billion topping expectations, while revenue grew 12% year over year.
• The company also approved a $25 billion share buyback, and Adobe’s upcoming June 11 earnings release will likely focus on guidance and the company’s AI strategy amid mixed analyst sentiment and insider selling.

Bank of New York Mellon Corp lowered its position in Adobe Inc. (NASDAQ:ADBE - Free Report) by 5.0% in the 4th quarter, according to its most recent 13F filing with the SEC. The firm owned 5,586,349 shares of the software company's stock after selling 295,359 shares during the period. Bank of New York Mellon Corp owned about 1.36% of Adobe worth $1,955,166,000 at the end of the most recent quarter.

Several other hedge funds also recently bought and sold shares of the company. Vanguard Group Inc. boosted its holdings in shares of Adobe by 0.8% during the 3rd quarter. Vanguard Group Inc. now owns 41,369,395 shares of the software company's stock valued at $14,593,054,000 after purchasing an additional 344,816 shares during the last quarter. State Street Corp boosted its holdings in shares of Adobe by 1.7% during the 3rd quarter. State Street Corp now owns 20,632,009 shares of the software company's stock valued at $7,277,941,000 after purchasing an additional 352,448 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of Adobe by 3.7% during the 4th quarter. Geode Capital Management LLC now owns 11,531,678 shares of the software company's stock valued at $4,027,170,000 after purchasing an additional 414,049 shares during the last quarter. Norges Bank bought a new position in shares of Adobe during the 4th quarter valued at about $2,275,165,000. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in shares of Adobe by 53.3% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company's stock valued at $1,981,448,000 after purchasing an additional 1,952,994 shares during the last quarter. Institutional investors own 81.79% of the company's stock.

Adobe Stock Performance

Adobe stock opened at $262.11 on Wednesday. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.91 and a quick ratio of 0.91. Adobe Inc. has a 1-year low of $224.13 and a 1-year high of $421.48. The firm has a market capitalization of $105.94 billion, a P/E ratio of 15.27, a price-to-earnings-growth ratio of 1.07 and a beta of 1.42. The company's 50-day moving average is $244.67 and its 200 day moving average is $283.66.

Adobe (NASDAQ:ADBE - Get Free Report) last posted its quarterly earnings data on Thursday, March 12th. The software company reported $6.06 earnings per share for the quarter, topping analysts' consensus estimates of $5.87 by $0.19. The company had revenue of $6.40 billion for the quarter, compared to analyst estimates of $6.28 billion. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The firm's revenue for the quarter was up 12.0% on a year-over-year basis. During the same period in the prior year, the company posted $5.08 EPS. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. Research analysts forecast that Adobe Inc. will post 19.14 EPS for the current year.

Adobe declared that its board has initiated a share buyback plan on Tuesday, April 21st that allows the company to buyback $25.00 billion in outstanding shares. This buyback authorization allows the software company to purchase up to 24.9% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board believes its shares are undervalued.

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Several reports say Adobe could beat estimates again in its next earnings report, citing its strong track record of earnings surprises and favorable setup going into the June 11 release. Will Adobe (ADBE) Beat Estimates Again in Its Next Earnings Report?
• Positive Sentiment: Investor interest has increased after Michael Burry was reported to view Adobe as an attractive AI opportunity with valuation upside, reinforcing the idea that the stock may be undervalued relative to its AI potential. Michael Burry Sees Adobe As AI Fat Pitch With Valuation Upside
• Positive Sentiment: Adobe and Nvidia-related coverage highlighted a broader software rally driven by AI demand, including faster Photoshop and Premiere performance on Nvidia RTX Spark systems, which supports the investment case for Adobe’s creative software franchise. Adobe x Nvidia RTX Spark: Photoshop, Premiere get 2x AI speed boost
• Neutral Sentiment: Adobe confirmed it will report second-quarter FY2026 results on June 11, putting the spotlight on guidance and AI execution rather than any immediate operational news. Adobe to Announce Q2 FY2026 Earnings Results on June 11, 2026
• Neutral Sentiment: Coverage also noted that Adobe India MD Prativa Mohapatra is stepping down after nearly five years, and that CEO Shantanu Narayen plans to exit after nearly two decades, raising questions about leadership continuity but not signaling an immediate business setback. Adobe India MD Prativa Mohapatra to leave after a nearly five-year stint
• Negative Sentiment: The CEO transition has put Adobe’s AI strategy and valuation under a brighter spotlight, and some investors may see the leadership change as added uncertainty at a time when competition in AI tools is intensifying. Adobe CEO Exit Puts AI Strategy And Valuation In The Spotlight

Insider Transactions at Adobe

In other news, CAO Jillian Forusz sold 755 shares of the firm's stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $246.25, for a total transaction of $185,918.75. Following the transaction, the chief accounting officer directly owned 3,521 shares of the company's stock, valued at approximately $867,046.25. This trade represents a 17.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Shantanu Narayen sold 75,000 shares of the firm's stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $243.54, for a total transaction of $18,265,500.00. Following the transaction, the chief executive officer directly owned 359,538 shares in the company, valued at approximately $87,561,884.52. This trade represents a 17.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 77,091 shares of company stock valued at $18,782,773. 0.20% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several research firms have commented on ADBE. Summit Redstone set a $350.00 price objective on shares of Adobe in a report on Friday, April 17th. Weiss Ratings downgraded shares of Adobe from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, March 6th. Mizuho reaffirmed a "neutral" rating and issued a $270.00 price target (down from $315.00) on shares of Adobe in a report on Monday, April 27th. BMO Capital Markets lowered their price target on shares of Adobe from $375.00 to $285.00 and set a "market perform" rating for the company in a report on Friday, March 13th. Finally, Piper Sandler lowered their price target on shares of Adobe from $330.00 to $280.00 and set a "neutral" rating for the company in a report on Friday, March 13th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, seventeen have issued a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $338.15.

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.

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