California State Teachers Retirement System Sells 14,954 Shares of Adobe Inc. $ADBE

Key Points

• California State Teachers Retirement System reduced its Adobe stake by 2.3%, selling 14,954 shares and retaining 629,123 shares worth approximately $152.9 million. Institutional investors collectively own 81.79% of Adobe.
• Adobe beat quarterly expectations with $5.96 in earnings per share and $6.62 billion in revenue, while revenue increased 12.7% year over year. The board also authorized a $25 billion share-repurchase program covering up to 24.9% of outstanding shares.
• Analyst sentiment remains mixed, with Adobe carrying a consensus “Hold” rating and an average price target of $271.30; seven analysts rate it Buy, 21 Hold, and six Sell.

California State Teachers Retirement System cut its holdings in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 2.3% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 629,123 shares of the software company's stock after selling 14,954 shares during the period. California State Teachers Retirement System owned 0.16% of Adobe worth $152,927,000 at the end of the most recent quarter.

A number of other institutional investors have also recently made changes to their positions in ADBE. Brighton Jones LLC boosted its holdings in Adobe by 2.1% in the fourth quarter. Brighton Jones LLC now owns 8,068 shares of the software company's stock worth $3,588,000 after acquiring an additional 167 shares in the last quarter. Sivia Capital Partners LLC raised its position in shares of Adobe by 25.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company's stock valued at $926,000 after purchasing an additional 486 shares during the last quarter. United Bank boosted its stake in Adobe by 12.8% in the 2nd quarter. United Bank now owns 3,773 shares of the software company's stock worth $1,460,000 after purchasing an additional 428 shares in the last quarter. Schnieders Capital Management LLC. grew its position in Adobe by 7.8% during the 2nd quarter. Schnieders Capital Management LLC. now owns 2,630 shares of the software company's stock worth $1,017,000 after purchasing an additional 190 shares during the last quarter. Finally, Gamco Investors INC. ET AL grew its position in Adobe by 190.6% during the 2nd quarter. Gamco Investors INC. ET AL now owns 2,764 shares of the software company's stock worth $1,069,000 after purchasing an additional 1,813 shares during the last quarter. Institutional investors and hedge funds own 81.79% of the company's stock.

Adobe Stock Up 4.8%

Adobe stock opened at $249.18 on Wednesday. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.75 and a quick ratio of 0.75. The stock has a market capitalization of $99.05 billion, a PE ratio of 14.26, a price-to-earnings-growth ratio of 0.80 and a beta of 1.43. The business has a 50 day simple moving average of $226.30 and a 200-day simple moving average of $249.96. Adobe Inc. has a 12 month low of $190.12 and a 12 month high of $376.16.

Adobe (NASDAQ:ADBE - Get Free Report) last released its earnings results on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, topping analysts' consensus estimates of $5.82 by $0.14. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The business had revenue of $6.62 billion during the quarter, compared to analysts' expectations of $6.45 billion. During the same quarter in the previous year, the company earned $5.06 earnings per share. The company's quarterly revenue was up 12.7% on a year-over-year basis. 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, analysts anticipate that Adobe Inc. will post 19.81 EPS for the current fiscal year.

Adobe announced that its board has authorized a stock 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 buy up to 24.9% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's board believes its shares are undervalued.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the stock. Evercore set a $225.00 price objective on shares of Adobe and gave the company an "in-line" rating in a report on Friday, June 12th. Oppenheimer reiterated a "market perform" rating on shares of Adobe in a research note on Friday, June 12th. Piper Sandler cut their price objective on Adobe from $280.00 to $240.00 and set a "neutral" rating on the stock in a report on Friday, June 12th. CLSA initiated coverage on Adobe in a report on Monday, July 20th. They set an "outperform" rating and a $300.00 target price for the company. Finally, TD Cowen dropped their target price on Adobe from $310.00 to $285.00 and set a "hold" rating on the stock in a research report on Monday, June 8th. Seven equities research analysts have rated the stock with a Buy rating, twenty-one have assigned a Hold rating and six have issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $271.30.

Insider Transactions at Adobe

In related news, CAO Jillian Forusz sold 755 shares of the company's stock in a transaction dated 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 sale, the chief accounting officer owned 3,521 shares of the company's stock, valued at approximately $867,046.25. This represents a 17.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director David A. Ricks purchased 10,000 shares of the company's stock in a transaction dated Thursday, June 25th. The stock was purchased at an average cost of $194.51 per share, with a total value of $1,945,100.00. Following the purchase, the director owned 17,655 shares in the company, valued at approximately $3,434,074.05. This trade represents a 130.63% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders own 0.20% of the company's stock.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe benefited from a rebound in software stocks after recent IBM-driven jitters eased. A more favorable sector backdrop helped restore investor interest in enterprise software names, including ADBE. Adobe Stock Rises as Enterprise Software Sentiment Rebounds
• Positive Sentiment: Acxiom research on organizations using or planning to use Adobe CX Enterprise highlights continued enterprise demand for Adobe’s marketing-technology products and the potential for customers to realize more value from their investments. Beyond Satisfaction: How Brands Can Unlock Hidden Value in Their Martech Stack
• Positive Sentiment: Adobe’s planned participation in the Open Source AI Cybersecurity Alliance could strengthen its credibility around trusted and secure AI, an increasingly important issue for enterprise customers. The immediate financial impact is uncertain. Adobe Joins Open Source AI Cybersecurity Alliance
• Positive Sentiment: Analysts are anticipating double-digit year-over-year EPS growth in Adobe’s upcoming third-quarter report, keeping earnings execution and forward guidance as potential catalysts. What to Expect From Adobe’s Q3 2026 Earnings Report

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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