Bridges Investment Management Inc. Cuts Stake in Adobe Inc. $ADBE

Key Points

• Bridges Investment Management cut its Adobe stake by 13% in the fourth quarter, selling 18,308 shares and leaving it with 122,381 shares worth about $42.8 million.
• Adobe insiders have also been selling stock, including CEO Shantanu Narayen, who sold 75,000 shares in late April; insiders sold 77,091 shares over the last 90 days, though they still own only 0.20% of the company.
• Despite mixed analyst sentiment, Adobe recently beat quarterly earnings and revenue estimates, announced a $25 billion share buyback, and is expected to report next quarter results on June 11 with attention on guidance and AI execution.

Bridges Investment Management Inc. reduced its stake in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 13.0% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 122,381 shares of the software company's stock after selling 18,308 shares during the quarter. Bridges Investment Management Inc.'s holdings in Adobe were worth $42,832,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors have also added to or reduced their stakes in the company. Western Pacific Wealth Management LP purchased a new stake in Adobe during the 4th quarter valued at approximately $26,000. Measured Wealth Private Client Group LLC purchased a new stake in Adobe during the 3rd quarter valued at approximately $26,000. KERR FINANCIAL PLANNING Corp purchased a new stake in Adobe during the 3rd quarter valued at approximately $27,000. Caitlin John LLC purchased a new position in shares of Adobe in the third quarter valued at $28,000. Finally, Beacon Financial Strategies CORP purchased a new position in shares of Adobe in the fourth quarter valued at $28,000. 81.79% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Adobe

In related news, CEO Shantanu Narayen sold 75,000 shares of Adobe stock in a transaction dated 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 completion of the sale, the chief executive officer owned 359,538 shares of the company's stock, valued at $87,561,884.52. The trade was a 17.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Jillian Forusz sold 755 shares of the business'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 value of $185,918.75. Following the completion of the transaction, the chief accounting officer directly owned 3,521 shares of the company's stock, valued at $867,046.25. The trade was a 17.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 77,091 shares of company stock worth $18,782,773. Insiders own 0.20% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on ADBE shares. Sanford C. Bernstein set a $447.00 target price on shares of Adobe and gave the company an "outperform" rating in a report on Friday, March 13th. BTIG Research started coverage on shares of Adobe in a report on Monday, April 13th. They issued a "neutral" rating for the company. JPMorgan Chase & Co. cut their target price on shares of Adobe from $520.00 to $420.00 and set an "overweight" rating for the company in a report on Friday, March 13th. TD Cowen cut their target price on shares of Adobe from $400.00 to $325.00 and set a "hold" rating for the company in a report on Tuesday, March 10th. Finally, Summit Redstone set a $350.00 target price on shares of Adobe in a report on Friday, April 17th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, seventeen have given a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $338.15.

Trending Headlines about 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

Adobe Price Performance

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

Adobe (NASDAQ:ADBE - Get Free Report) last posted its earnings results on Thursday, March 12th. The software company reported $6.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.87 by $0.19. Adobe had a return on equity of 64.48% and a net margin of 29.48%.The company had revenue of $6.40 billion for the quarter, compared to analyst estimates of $6.28 billion. During the same quarter in the previous year, the firm earned $5.08 earnings per share. The firm's quarterly revenue was up 12.0% compared to the same quarter last year. 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 anticipate that Adobe Inc. will post 19.14 earnings per share for the current fiscal year.

Adobe declared that its Board of Directors has initiated a share buyback plan on Tuesday, April 21st that authorizes the company to repurchase $25.00 billion in shares. This repurchase authorization authorizes the software company to purchase up to 24.9% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's management believes its stock is undervalued.

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.

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