Diamond Hill Capital Management Inc. Has $345.85 Million Holdings in Adobe Inc. $ADBE

Key Points

• Diamond Hill Capital Management trimmed its Adobe stake by 3.5% in the fourth quarter, but still held 988,179 shares worth about $345.85 million. Adobe remains a meaningful position, making up about 1.8% of the fund’s portfolio.
• Adobe’s recent results were solid, with quarterly EPS of $6.06 and revenue of $6.40 billion, both ahead of estimates. The company also issued FY2026 guidance and announced a $25 billion share buyback authorization.
• Despite some upbeat commentary on Adobe’s AI and turnaround potential, sentiment is mixed: several analysts rate the stock a Hold, and insiders have recently sold shares, including CEO Shantanu Narayen. The stock was trading near $244, well below its 52-week high of $421.48.

Diamond Hill Capital Management Inc. lessened its stake in Adobe Inc. (NASDAQ:ADBE - Free Report) by 3.5% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 988,179 shares of the software company's stock after selling 36,294 shares during the quarter. Adobe comprises about 1.8% of Diamond Hill Capital Management Inc.'s investment portfolio, making the stock its 17th largest holding. Diamond Hill Capital Management Inc. owned about 0.24% of Adobe worth $345,853,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. MCF Advisors LLC raised its position in shares of Adobe by 20.8% in the 3rd quarter. MCF Advisors LLC now owns 174 shares of the software company's stock valued at $61,000 after acquiring an additional 30 shares during the period. SWAN Capital LLC grew its holdings in Adobe by 43.1% during the third quarter. SWAN Capital LLC now owns 103 shares of the software company's stock valued at $36,000 after purchasing an additional 31 shares during the period. Logan Capital Management Inc. increased its stake in Adobe by 0.3% in the third quarter. Logan Capital Management Inc. now owns 9,789 shares of the software company's stock valued at $3,453,000 after purchasing an additional 32 shares in the last quarter. Andina Capital Management LLC raised its holdings in Adobe by 6.0% in the third quarter. Andina Capital Management LLC now owns 583 shares of the software company's stock worth $206,000 after purchasing an additional 33 shares during the period. Finally, Cornerstone Planning Group LLC raised its holdings in Adobe by 33.0% in the third quarter. Cornerstone Planning Group LLC now owns 133 shares of the software company's stock worth $47,000 after purchasing an additional 33 shares during the period. Institutional investors own 81.79% of the company's stock.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe is expanding its Firefly-powered creative tools into Google Gemini, which could broaden usage of its software and reinforce its position in digital creativity workflows. Adobe Is Bringing Its Firefly-Powered Creative AI Tools Directly Into Google Gemini
• Positive Sentiment: Commentary from 24/7 Wall St. highlighted Adobe as an oversold turnaround idea, arguing the stock’s weakness may be overdone relative to its fundamentals and AI-related revenue prospects. Adobe Price Prediction. A $417 Stock Now at $253 With AI Revenue Tripling. Here Is Our 12 Month Target
• Positive Sentiment: Michael Burry reportedly maintained a position in Adobe, which may signal some contrarian investor confidence in the beaten-down stock. Adobe Inc. (ADBE): Michael Burry Maintains Position

Insider Buying and Selling at Adobe

In other news, CEO Shantanu Narayen sold 75,000 shares of Adobe stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $243.54, for a total value of $18,265,500.00. Following the sale, the chief executive officer directly owned 359,538 shares in the company, valued at $87,561,884.52. This trade represents a 17.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Daniel Durn sold 1,336 shares of the business's stock in a transaction on Monday, April 20th. The stock was sold at an average price of $248.02, for a total transaction of $331,354.72. Following the completion of the sale, the chief financial officer directly owned 42,833 shares in the company, valued at approximately $10,623,440.66. This represents a 3.02% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 77,091 shares of company stock worth $18,782,773. Corporate insiders own 0.20% of the company's stock.

Adobe Price Performance

Shares of NASDAQ ADBE opened at $244.10 on Friday. The company has a fifty day moving average price of $245.63 and a 200 day moving average price of $287.76. The firm has a market cap of $98.67 billion, a PE ratio of 14.22, a PEG ratio of 0.99 and a beta of 1.42. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.47. Adobe Inc. has a 1-year low of $224.13 and a 1-year high of $421.48.

Adobe (NASDAQ:ADBE - Get Free Report) last released its quarterly 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. The firm had revenue of $6.40 billion for the quarter, compared to the consensus estimate of $6.28 billion. Adobe had a return on equity of 64.48% and a net margin of 29.48%.The company's revenue for the quarter was up 12.0% on a year-over-year basis. During the same quarter last year, the business 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 predict that Adobe Inc. will post 19.14 earnings per share for the current fiscal year.

Adobe declared that its board has approved a share buyback program on Tuesday, April 21st that allows the company to buyback $25.00 billion in shares. This buyback authorization allows the software company to repurchase up to 24.9% of its stock through open market purchases. Stock buyback programs are often an indication that the company's board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on ADBE shares. Argus reissued a "hold" rating on shares of Adobe in a report on Monday, March 16th. Jefferies Financial Group dropped their price objective on Adobe from $400.00 to $290.00 and set a "hold" rating on the stock in a research note on Monday, February 23rd. Summit Redstone set a $350.00 target price on Adobe in a research note on Friday, April 17th. Sanford C. Bernstein set a $447.00 price target on Adobe and gave the stock an "outperform" rating in a report on Friday, March 13th. Finally, Barclays lowered Adobe from an "overweight" rating to an "equal weight" rating and dropped their price target for the stock from $335.00 to $275.00 in a research report on Friday, March 13th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, seventeen have assigned a Hold rating and five have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $338.15.

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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