Edgestream Partners L.P. Cuts Holdings in Adobe Inc. $ADBE

Key Points

• Edgestream Partners cut its Adobe stake by 27.3% in the first quarter, selling 4,936 shares and retaining 13,175 shares valued at approximately $3.2 million. Institutional investors collectively own 81.79% of Adobe.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and a $271.30 target price after several firms lowered their estimates. Adobe nevertheless exceeded quarterly earnings and revenue expectations, reporting 12.7% year-over-year revenue growth.
• Adobe is pursuing AI-related growth and has authorized a $25 billion share-repurchase program, while insider activity was mixed: Director David Ricks bought 10,000 shares, whereas Chief Accounting Officer Jillian Forusz sold 416 shares.

Edgestream Partners L.P. decreased its holdings in Adobe Inc. (NASDAQ:ADBE - Free Report) by 27.3% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 13,175 shares of the software company's stock after selling 4,936 shares during the period. Edgestream Partners L.P.'s holdings in Adobe were worth $3,203,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds also recently bought and sold shares of the company. Brighton Jones LLC raised its stake in shares of Adobe by 2.1% during the 4th 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 grew its holdings in Adobe by 25.5% in the second quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company's stock worth $926,000 after purchasing an additional 486 shares during the last quarter. United Bank grew its holdings in Adobe by 12.8% in the second quarter. United Bank now owns 3,773 shares of the software company's stock worth $1,460,000 after purchasing an additional 428 shares during the last quarter. Schnieders Capital Management LLC. increased its position in shares of Adobe by 7.8% during the second 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 in the last quarter. Finally, Gamco Investors INC. ET AL increased its position in shares of Adobe by 190.6% during the second 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 in the last quarter. Hedge funds and other institutional investors own 81.79% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the company. Wall Street Zen cut Adobe from a "buy" rating to a "hold" rating in a research report on Saturday, July 4th. JPMorgan Chase & Co. reduced their target price on Adobe from $420.00 to $340.00 and set an "overweight" rating on the stock in a research report on Friday, June 12th. Jefferies Financial Group decreased their price target on Adobe from $290.00 to $230.00 and set a "hold" rating for the company in a research note on Friday, June 12th. Robert W. Baird lowered their price target on Adobe from $270.00 to $230.00 and set a "neutral" rating for the company in a report on Friday, June 12th. Finally, Mizuho dropped their price target on Adobe from $270.00 to $245.00 and set a "neutral" rating on the stock in a research note on Friday, June 12th. Seven research analysts have rated the stock with a Buy rating, twenty-one have assigned a Hold rating and six have given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $271.30.

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe’s latest AI acquisition reportedly cleared Washington without significant regulatory obstacles, removing a potential deal risk and strengthening the company’s efforts to expand AI-powered creative tools. Adobe's latest AI acquisition just breezed through Washington
• Positive Sentiment: Recent commentary argues that AI is enhancing Adobe’s business rather than replacing it, potentially supporting new monetization opportunities, stronger customer engagement and a rebuilding of the company’s growth engine. Adobe’s latest quarterly results also showed roughly 13% year-over-year revenue growth and performance above analyst expectations. Adobe: How AI Is Enhancing Its Business, Not Killing It
• Positive Sentiment: Investors are also considering ways to participate in Adobe’s AI upside while hedging risks, suggesting that the stock remains a significant target for AI-related trading and positioning. As Adobe monetizes AI, here's a way to trade it and hedge against risks
• Neutral Sentiment: Analyst and investor views remain divided. Some see Adobe’s valuation and free-cash-flow generation as attractive, while others remain concerned about AI disruption, software-sector weakness and the need to restore faster growth. Adobe Stock Trades Below The Market on Earnings While Its Growth Engine Is Being Rebuilt
• Negative Sentiment: Adobe Chief Accounting Officer Jillian Forusz sold 416 shares worth approximately $110,000. The transaction was relatively small, but it adds to a pattern of insider selling that may weigh modestly on sentiment. SEC Form 4 filing
• Negative Sentiment: A reported collapse of a highly leveraged AI hedge fund and forced selling of AI-infrastructure positions could reinforce broader caution around crowded AI trades and software-sector volatility, although it does not directly affect Adobe’s operations. AI hedge fund collapses after margin calls

Insider Activity

In other news, Director David A. Ricks bought 10,000 shares of the firm's stock in a transaction that occurred on Thursday, June 25th. The stock was 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 $3,434,074.05. This trade represents a 130.63% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Jillian Forusz sold 416 shares of Adobe stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $264.33, for a total value of $109,961.28. Following the sale, the chief accounting officer directly owned 3,824 shares of the company's stock, valued at $1,010,797.92. This trade represents a 9.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.20% of the company's stock.

Adobe Price Performance

Shares of ADBE opened at $250.41 on Friday. 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 company's fifty day moving average price is $226.69 and its 200-day moving average price is $248.84. Adobe Inc. has a 1-year low of $190.12 and a 1-year high of $370.86. The firm has a market capitalization of $99.54 billion, a PE ratio of 14.33, a price-to-earnings-growth ratio of 0.84 and a beta of 1.43.

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

Adobe declared that its board has initiated a share repurchase plan 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 plans are typically a sign that the company's board of directors believes its stock is undervalued.

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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