Diamond Hill Capital Management Inc. Has $361.38 Million Stock Holdings in Adobe Inc. $ADBE

Key Points

• Diamond Hill Capital Management increased its stake in Adobe by 20.6% in Q3 to 1,024,473 shares worth $361.38 million, representing about 0.24% of Adobe and the fund's 22nd largest holding.
• Adobe beat Q3 estimates, reporting $5.50 EPS vs. $5.40 expected and $6.19B revenue (up 10.5% YoY), and issued FY26 EPS guidance of 23.30–23.50.
• Analyst sentiment is mixed: MarketBeat shows a consensus rating of "Hold" with an average price target of $401.13, while institutional investors own roughly 81.79% of the stock.

Diamond Hill Capital Management Inc. grew its position in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 20.6% in the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 1,024,473 shares of the software company's stock after purchasing an additional 174,891 shares during the quarter. Adobe comprises approximately 1.7% of Diamond Hill Capital Management Inc.'s investment portfolio, making the stock its 22nd largest position. Diamond Hill Capital Management Inc. owned approximately 0.24% of Adobe worth $361,383,000 at the end of the most recent reporting period.

Other hedge funds have also added to or reduced their stakes in the company. Norges Bank bought a new stake in Adobe in the 2nd quarter valued at about $2,029,950,000. Invesco Ltd. grew its stake in Adobe by 16.1% in the second quarter. Invesco Ltd. now owns 4,407,162 shares of the software company's stock valued at $1,705,043,000 after acquiring an additional 610,215 shares during the period. Arrowstreet Capital Limited Partnership increased its holdings in shares of Adobe by 17.6% during the second quarter. Arrowstreet Capital Limited Partnership now owns 3,664,151 shares of the software company's stock valued at $1,417,587,000 after acquiring an additional 548,903 shares in the last quarter. Charles Schwab Investment Management Inc. increased its holdings in shares of Adobe by 0.8% during the second quarter. Charles Schwab Investment Management Inc. now owns 2,922,630 shares of the software company's stock valued at $1,130,707,000 after acquiring an additional 24,333 shares in the last quarter. Finally, Schroder Investment Management Group raised its position in shares of Adobe by 3.8% during the second quarter. Schroder Investment Management Group now owns 2,137,724 shares of the software company's stock worth $827,043,000 after purchasing an additional 78,186 shares during the period. 81.79% of the stock is currently owned by institutional investors.

Adobe Stock Performance

NASDAQ ADBE opened at $268.38 on Friday. The company has a market capitalization of $110.17 billion, a PE ratio of 16.06, a price-to-earnings-growth ratio of 1.06 and a beta of 1.51. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.00 and a current ratio of 1.00. Adobe Inc. has a 52-week low of $264.04 and a 52-week high of $465.70. The company has a 50-day simple moving average of $324.53 and a 200 day simple moving average of $338.64.

Adobe (NASDAQ:ADBE - Get Free Report) last released its earnings results on Wednesday, December 10th. The software company reported $5.50 earnings per share for the quarter, beating analysts' consensus estimates of $5.40 by $0.10. The firm had revenue of $6.19 billion during the quarter, compared to the consensus estimate of $6.11 billion. Adobe had a net margin of 30.00% and a return on equity of 61.28%. The company's revenue was up 10.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $4.81 EPS. Adobe has set its Q1 2026 guidance at 5.850-5.900 EPS and its FY 2026 guidance at 23.300-23.500 EPS. On average, research analysts predict that Adobe Inc. will post 16.65 EPS for the current year.

Analysts Set New Price Targets

ADBE has been the subject of several research reports. Royal Bank Of Canada reissued an "outperform" rating and issued a $430.00 price target on shares of Adobe in a research report on Thursday, December 11th. BMO Capital Markets cut shares of Adobe from an "outperform" rating to a "market perform" rating and reduced their price objective for the company from $400.00 to $375.00 in a report on Friday, January 9th. Wolfe Research decreased their target price on shares of Adobe from $450.00 to $440.00 and set an "outperform" rating for the company in a research report on Thursday, December 11th. Jefferies Financial Group cut shares of Adobe from a "buy" rating to a "hold" rating and dropped their price target for the company from $500.00 to $400.00 in a research report on Monday, January 5th. Finally, Robert W. Baird set a $350.00 price objective on Adobe in a report on Wednesday, January 14th. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, eleven have assigned a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $401.13.

Insider Activity

In other news, CFO Daniel Durn sold 1,646 shares of the company's stock in a transaction on Tuesday, January 27th. The stock was sold at an average price of $294.85, for a total transaction of $485,323.10. Following the transaction, the chief financial officer owned 41,995 shares of the company's stock, valued at $12,382,225.75. This represents a 3.77% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.16% of the stock is currently owned by insiders.

Key Stories Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe reversed its decision to discontinue Adobe Animate and moved the app to maintenance mode after heavy creator backlash — a move that removes a key PR overhang and reduces the risk of customer churn in creative communities. After backlash, Adobe cancels Adobe Animate shutdown and puts app on ‘maintenance mode’
• Positive Sentiment: An analyst action: Piper Sandler moved Adobe to a "hold" rating, which supports the argument that sellside views are stabilizing after the stock's large decline. This is modestly supportive for near-term sentiment. Zacks / TickerReport coverage of Piper Sandler upgrade
• Positive Sentiment: Some outlets highlight a bull case and recent session gains (coverage noting intraday upticks), reflecting that selective buyers are viewing the recent pullback as a buying opportunity. Adobe Systems (ADBE) Increases Despite Market Slip
• Neutral Sentiment: Analyst surveys note Adobe has underperformed the market over the past year but sentiment is "cautiously optimistic" — this keeps expectations mixed and suggests analysts see recovery potential but not an imminent re-rating. Adobe Stock: Analyst Estimates & Ratings
• Neutral Sentiment: Long-form takeaways assessing whether the >50% decline since 2024 is a buying opportunity provide frameworks for investors (marketing spend up, AI strategy emphasized), but they are opinion pieces rather than new corporate developments. Adobe (ADBE) Stock: Is This 50% Drop a Buying Opportunity?
• Neutral Sentiment: A legislative note lists Adobe among companies likely to engage with major U.S. sporting events (sponsorship/promotional opportunities). This is peripheral and not an immediate earnings driver. New Bill: Senator Jacky Rosen introduces S. 3676
• Negative Sentiment: Wider software-sector selloff tied to accelerating AI competition and fresh model releases (plus new Anthropic tools) has pressured large software names, amplifying fear of AI-driven disruption and prompting sector rotation out of higher-multiple names like Adobe. Software Stocks Selloff: What's Behind the Rout?
• Negative Sentiment: Initial reports that Adobe would end Animate sparked creator outrage and likely contributed to short-term selling before the reversal — a reminder that product missteps or communication errors can meaningfully affect sentiment. Adobe Ends Animate, Abandoning Millions Of Artists Amid AI Push
• Negative Sentiment: Headline pieces summarizing why ADBE is trading down reiterate the mix of macro/sector weakness, AI competition fears, and company-specific PR noise that are keeping buyers cautious. Adobe (ADBE) stock trades down, here is why

Adobe 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.