Deane Retirement Strategies Inc. Cuts Holdings in Adobe Inc. $ADBE

Key Points

• Deane Retirement Strategies cut its Adobe stake by 15.7% in the second quarter, selling 4,351 shares and retaining 23,361 shares valued at approximately $4.79 million.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $271.30; seven analysts rate Adobe a Buy, 21 a Hold and six a Sell.
• Adobe reported quarterly revenue of $6.62 billion and EPS of $5.96, exceeding estimates, while revenue grew 12.7% year over year. The company also authorized a $25 billion share-repurchase program, and recently expanded its AI strategy through a ChatGPT plug-in integrating more than 70 tools.

Deane Retirement Strategies Inc. cut its stake in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 15.7% in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 23,361 shares of the software company's stock after selling 4,351 shares during the quarter. Adobe makes up approximately 2.0% of Deane Retirement Strategies Inc.'s portfolio, making the stock its 23rd biggest position. Deane Retirement Strategies Inc.'s holdings in Adobe were worth $4,791,000 at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in ADBE. HF Advisory Group LLC raised its holdings in Adobe by 16.8% during the second quarter. HF Advisory Group LLC now owns 5,529 shares of the software company's stock worth $1,134,000 after purchasing an additional 794 shares in the last quarter. Chemistry Wealth Management LLC raised its stake in Adobe by 117.2% during the 2nd quarter. Chemistry Wealth Management LLC now owns 1,803 shares of the software company's stock worth $370,000 after acquiring an additional 973 shares in the last quarter. Hennion & Walsh Asset Management Inc. lifted its position in Adobe by 4.3% in the second quarter. Hennion & Walsh Asset Management Inc. now owns 7,585 shares of the software company's stock valued at $1,555,000 after acquiring an additional 313 shares during the last quarter. Crumly & Associates Inc. boosted its stake in Adobe by 16.4% in the second quarter. Crumly & Associates Inc. now owns 2,219 shares of the software company's stock valued at $455,000 after acquiring an additional 312 shares in the last quarter. Finally, Seilern Investment Management Ltd grew its holdings in shares of Adobe by 1.6% during the second quarter. Seilern Investment Management Ltd now owns 179,896 shares of the software company's stock worth $36,882,000 after purchasing an additional 2,876 shares during the last quarter. Institutional investors and hedge funds own 81.79% of the company's stock.

Wall Street Analysts Forecast Growth

ADBE has been the subject of a number of research analyst reports. Sanford C. Bernstein decreased their target price on Adobe from $447.00 to $379.00 and set an "outperform" rating for the company in a research report on Friday, June 12th. Wells Fargo & Company cut their price target on Adobe from $330.00 to $250.00 and set an "overweight" rating on the stock in a research report on Friday, June 12th. Bank of America reissued an "underperform" rating and issued a $190.00 price objective on shares of Adobe in a report on Tuesday, July 7th. Oppenheimer reaffirmed a "market perform" rating on shares of Adobe in a report on Friday, June 12th. Finally, Citigroup reiterated a "market perform" rating on shares of Adobe in a research note on Friday, June 12th. Seven equities research analysts have rated the stock with a Buy rating, twenty-one have assigned a Hold rating and six have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $271.30.

Insider Buying and Selling

In other Adobe news, Director David A. Ricks acquired 10,000 shares of the company's stock in a transaction that occurred on Thursday, June 25th. The shares were purchased at an average price of $194.51 per share, with a total value of $1,945,100.00. Following the completion of the acquisition, the director directly owned 17,655 shares of the company's stock, valued at approximately $3,434,074.05. The trade was a 130.63% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CAO Jillian Forusz sold 416 shares of the stock in a transaction 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 completion of the transaction, the chief accounting officer owned 3,824 shares of the company's stock, valued at $1,010,797.92. The trade was a 9.81% decrease in their position. The SEC filing for this sale provides additional information. 0.20% of the stock is owned by insiders.

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe launched a unified ChatGPT plug-in that brings more than 70 creative and productivity tools—including Photoshop, Lightroom, Acrobat, image, video and PDF capabilities—directly into OpenAI’s chatbot. The integration could make Adobe’s products easier to access, expand usage and position the company as an AI enabler rather than an AI casualty. Adobe Debuts ChatGPT App Featuring All Its Programs
• Positive Sentiment: Recent coverage highlights Adobe’s valuation after its sharp sell-off. The company is still producing double-digit revenue growth, stable margins and substantial free cash flow, while its latest quarterly results exceeded earnings and revenue expectations. A recovery in investor sentiment or a valuation re-rating could provide significant upside. Buy the Dip or Run: 3 Software Stocks Down 50% Face Their Moment of Truth
• Positive Sentiment: Zacks characterized ADBE as both a long-term growth candidate and a strong value stock, reflecting its depressed valuation relative to historical levels and continuing earnings potential. Why Adobe Systems Is a Top Growth Stock for the Long-Term
• Neutral Sentiment: Akamai’s strong cloud and security results offer an indirect positive signal because Adobe is among its customers, but the report does not provide new information about Adobe’s financial performance. Akamai Beats Quarterly Estimates on Cloud Infrastructure Demand
• Negative Sentiment: Adobe remains one of the software companies targeted by AI-disruption concerns. AI-native competitors could pressure pricing, customer retention and growth, and promotional commentary warns of insider selling, talent departures and business-model changes. These claims are not confirmed in the supplied reporting, but they underscore the key risk investors are monitoring. These Are the Four Signs a Company Is About to Be Destroyed by AI

Adobe Stock Performance

Shares of ADBE opened at $265.21 on Monday. The stock has a market capitalization of $105.42 billion, a P/E ratio of 15.17, a P/E/G ratio of 0.89 and a beta of 1.40. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.75 and a current ratio of 0.75. Adobe Inc. has a 1 year low of $190.12 and a 1 year high of $370.86. The company's fifty day moving average is $228.08 and its two-hundred day moving average is $246.75.

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 the consensus estimate of $5.82 by $0.14. The company had revenue of $6.62 billion during the quarter, compared to analysts' expectations of $6.45 billion. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The business's revenue was up 12.7% on a year-over-year basis. During the same quarter last year, the business earned $5.06 EPS. 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, sell-side analysts predict that Adobe Inc. will post 19.81 earnings per share for the current year.

Adobe announced that its board has approved a share repurchase program on Tuesday, April 21st that authorizes the company to buyback $25.00 billion in outstanding shares. This buyback authorization authorizes the software company to reacquire up to 24.9% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's management believes its shares are 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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