Burns Matteson Capital Management LLC Sells 5,905 Shares of Adobe Inc. $ADBE

Key Points

• Burns Matteson Capital Management LLC cut its Adobe stake by 60.8% in the third quarter, selling 5,905 shares and retaining 3,800 shares valued at approximately $912,000. Institutional investors own about 81.79% of Adobe.
• Adobe’s expanded partnership with NVIDIA aims to accelerate AI-powered creative workflows, while strong free-cash-flow generation and recent earnings growth support the company’s fundamentals. However, investors remain concerned that cheaper AI alternatives could pressure Adobe’s subscription business.
• Insider selling has added to caution, with company insiders selling 125,416 shares worth about $31.5 million over the past 90 days. Analysts maintain a consensus “Hold” rating with an average price target of $283.90.

Burns Matteson Capital Management LLC reduced its holdings in Adobe Inc. (NASDAQ:ADBE - Free Report) by 60.8% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 3,800 shares of the software company's stock after selling 5,905 shares during the period. Burns Matteson Capital Management LLC's holdings in Adobe were worth $912,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Cyndeo Wealth Partners LLC grew its holdings in shares of Adobe by 2.8% in the 3rd quarter. Cyndeo Wealth Partners LLC now owns 1,559 shares of the software company's stock valued at $374,000 after acquiring an additional 43 shares in the last quarter. Meridian Management Co. increased its position in shares of Adobe by 0.3% in the first quarter. Meridian Management Co. now owns 15,241 shares of the software company's stock valued at $3,705,000 after acquiring an additional 44 shares during the last quarter. Brown Shipley& Co Ltd increased its position in shares of Adobe by 28.8% in the first quarter. Brown Shipley& Co Ltd now owns 197 shares of the software company's stock valued at $48,000 after acquiring an additional 44 shares during the last quarter. United Bank raised its holdings in Adobe by 1.4% during the first quarter. United Bank now owns 3,658 shares of the software company's stock worth $889,000 after acquiring an additional 49 shares in the last quarter. Finally, Drystone LLC raised its holdings in Adobe by 0.5% during the second quarter. Drystone LLC now owns 10,420 shares of the software company's stock worth $2,136,000 after acquiring an additional 50 shares in the last quarter. 81.79% of the stock is owned by institutional investors.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe and NVIDIA expanded their partnership to optimize Photoshop, Premiere, Substance 3D, Frame.io and Brand Concierge. The companies say the collaboration could make AI-powered creative workflows run up to twice as fast, strengthening Adobe’s ability to monetize agentic creation and enterprise AI adoption. Adobe and NVIDIA Expand Collaboration to Speed Agentic Creation
• Positive Sentiment: Adobe’s substantial free-cash-flow generation is attracting attention. Free cash flow over the past year equaled roughly 11.1% of its market value, supporting the view that the stock may be undervalued if the company can maintain its recurring-revenue model and profitability. Should You Buy Adobe Stock For Its Cash?
• Neutral Sentiment: The NVIDIA relationship is part of a broader wave of collaborations integrating NVIDIA chips, models and software into customer workflows. This improves Adobe’s AI infrastructure and distribution potential, but investors still need evidence that these initiatives will translate into sustained revenue growth.
• Negative Sentiment: Wall Street’s bearish stance is intensifying, with analysts increasingly questioning whether cheaper AI alternatives could replace or pressure Adobe’s creative software subscriptions. Recent price targets include several levels below the stock’s recent trading range. Adobe Stock: Wall Street’s Bearish Sentiment Is Only Getting Worse
• Negative Sentiment: Reports that AI tools can produce free copies or substitutes for Adobe functionality are reinforcing “SaaSpocalypse” concerns. In addition, reported insider activity showed selling rather than buying, adding to investor caution about the stock’s outlook. AI Can Make Free Copies of Adobe Software

Insider Activity at Adobe

In other news, CEO Shantanu Narayen sold 50,500 shares of Adobe stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $249.57, for a total transaction of $12,603,285.00. Following the completion of the transaction, the chief executive officer directly owned 238,724 shares in the company, valued at approximately $59,578,348.68. The trade was a 17.46% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Jillian Forusz sold 416 shares of Adobe stock in a transaction that occurred 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 of the company's stock, valued at $1,010,797.92. This represents a 9.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 125,416 shares of company stock worth $31,454,466 in the last 90 days. Corporate insiders own 0.20% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages recently commented on ADBE. DA Davidson increased their price target on Adobe from $250.00 to $290.00 and gave the company a "buy" rating in a research report on Monday, September 14th. Oppenheimer reaffirmed a "market perform" rating on shares of Adobe in a research report on Tuesday, September 8th. Robert W. Baird upped their price objective on Adobe from $230.00 to $250.00 and gave the stock a "neutral" rating in a research note on Friday, September 11th. Barclays upped their price objective on Adobe from $250.00 to $295.00 and gave the stock an "equal weight" rating in a research note on Thursday, September 3rd. Finally, Wall Street Zen downgraded Adobe from a "buy" rating to a "hold" rating in a report on Saturday, October 10th. Nine research analysts have rated the stock with a Buy rating, twenty have assigned a Hold rating and seven have given a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $283.90.

Adobe Stock Down 2.6%

Adobe stock opened at $245.20 on Friday. The company has a debt-to-equity ratio of 0.41, a current ratio of 0.77 and a quick ratio of 0.77. The company's 50-day moving average is $256.57 and its 200-day moving average is $242.97. The firm has a market capitalization of $95.43 billion, a PE ratio of 13.68, a P/E/G ratio of 0.85 and a beta of 1.42. Adobe Inc. has a fifty-two week low of $190.12 and a fifty-two week high of $363.70.

Adobe (NASDAQ:ADBE - Get Free Report) last issued its earnings results on Thursday, September 10th. The software company reported $6.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.08 by $0.05. Adobe had a net margin of 28.05% and a return on equity of 65.65%. The business had revenue of $6.76 billion during the quarter, compared to the consensus estimate of $6.69 billion. During the same period last year, the business posted $5.31 EPS. Adobe's revenue was up 12.9% on a year-over-year basis. Adobe has set its Q4 2026 guidance at 6.300-6.350 EPS and its FY 2026 guidance at 24.450-24.500 EPS. Sell-side analysts anticipate that Adobe Inc. will post 20.01 earnings per share for the current year.

Adobe Profile

Adobe Inc is a global software company that develops digital tools for creative professionals, businesses, marketers, and individual users. Its products help customers create, edit, publish, manage, and measure digital content across websites, mobile applications, documents, and other media.

The company's Creative Cloud portfolio includes applications such as Photoshop, Illustrator, InDesign, Premiere Pro, and Acrobat. Adobe also offers Document Cloud, which provides tools for creating, editing, sharing, signing, and managing digital documents, and Experience Cloud, a suite of solutions for digital marketing, analytics, commerce, customer journeys, and content management.

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