Engineers Gate Manager LP Decreases Stake in Adobe Inc. $ADBE

Key Points

• Engineers Gate Manager LP cut its Adobe stake by 81.5% in the second quarter, selling 23,244 shares and retaining 5,278 shares valued at approximately $1.08 million.
• Analyst sentiment remains mixed: Adobe has a consensus “Hold” rating and a $282.68 average price target, with seven Buy, 21 Hold, and five Sell ratings.
• Adobe exceeded quarterly expectations with $6.13 in EPS and $6.76 billion in revenue, while recent insider selling—including 74,500 shares sold by CEO Shantanu Narayen—has raised investor concerns.

Engineers Gate Manager LP lowered its stake in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 81.5% during the 2nd quarter, according to its most recent filing with the SEC. The firm owned 5,278 shares of the software company's stock after selling 23,244 shares during the period. Engineers Gate Manager LP's holdings in Adobe were worth $1,082,000 as of its most recent SEC filing.

A number of other large investors have also recently made changes to their positions in the stock. TrustBank purchased a new position in shares of Adobe during the 4th quarter valued at about $28,000. Lloyd Advisory Services LLC. purchased a new position in Adobe during the fourth quarter valued at approximately $31,000. Sankala Group LLC bought a new position in shares of Adobe in the fourth quarter worth approximately $31,000. Hyposwiss Advisors SA bought a new position in shares of Adobe in the fourth quarter worth approximately $35,000. Finally, Abound Financial LLC purchased a new stake in shares of Adobe in the fourth quarter worth $37,000. 81.79% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several analysts have recently commented on the stock. Wall Street Zen upgraded shares of Adobe from a "hold" rating to a "buy" rating in a research report on Saturday, September 5th. Piper Sandler increased their price target on Adobe from $240.00 to $250.00 and gave the stock a "neutral" rating in a research note on Friday, September 11th. Royal Bank Of Canada reissued an "outperform" rating and set a $315.00 price target on shares of Adobe in a report on Friday, September 11th. Bank of America boosted their price objective on Adobe from $190.00 to $220.00 and gave the company an "underperform" rating in a research report on Wednesday, August 19th. Finally, Weiss Ratings raised Adobe from a "sell (d)" rating to a "sell (d+)" rating in a research note on Tuesday, September 1st. Seven investment analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat, Adobe has a consensus rating of "Hold" and a consensus price target of $282.68.

Insider Activity at Adobe

In related news, CEO Shantanu Narayen sold 74,500 shares of the company's stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $251.56, for a total transaction of $18,741,220.00. Following the transaction, the chief executive officer directly owned 289,224 shares in the company, valued at approximately $72,757,189.44. This represents a 20.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Jillian Forusz sold 416 shares of the stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $264.33, for a total transaction of $109,961.28. Following the completion of the sale, the chief accounting officer directly owned 3,824 shares in the company, valued at $1,010,797.92. This trade represents a 9.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 125,416 shares of company stock worth $31,454,466. Insiders own 0.20% of the company's stock.

Adobe Stock Performance

NASDAQ ADBE opened at $248.92 on Friday. The company has a market cap of $98.95 billion, a P/E ratio of 13.89, a P/E/G ratio of 0.88 and a beta of 1.42. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.75 and a current ratio of 0.77. The business's 50 day moving average price is $256.92 and its 200-day moving average price is $245.59. Adobe Inc. has a fifty-two week low of $190.12 and a fifty-two week high of $370.31.

Adobe (NASDAQ:ADBE - Get Free Report) last issued its quarterly earnings results on Thursday, September 10th. The software company reported $6.13 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $6.08 by $0.05. Adobe had a return on equity of 65.65% and a net margin of 28.05%.The company had revenue of $6.76 billion during the quarter, compared to the consensus estimate of $6.69 billion. During the same period last year, the company earned $5.31 earnings per share. Adobe's revenue was up 12.9% on a year-over-year basis. Adobe has set its Q4 2026 guidance at 6.300-6.350 EPS and its FY 2026 guidance at 24.450-24.500 EPS. Sell-side analysts predict that Adobe Inc. will post 20.01 earnings per share for the current year.

Key Stories Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe’s Acrobat Student Spaces platform has surpassed 1 million monthly users since its beta launch, supporting the company’s argument that AI tools such as adaptive flashcards, citation generation and study guides can expand engagement and potentially create new monetization opportunities. E-Commerce Update - AI-Powered Student Spaces Revolutionizes Learning With Adobe Acrobat
• Positive Sentiment: Several recent analyses characterize ADBE as both a value and growth stock. Adobe trades at roughly 14 times trailing earnings despite record quarterly revenue, suggesting the market may be underestimating the long-term potential of converting free AI users into paying customers. How Much Upside Is Left In Adobe Stock?
• Neutral Sentiment: Analyst coverage remains focused on Adobe’s fiscal 2026 earnings outlook and upcoming quarterly results. The available reports do not indicate a material change to consensus estimates, leaving the next earnings report as an important catalyst. What is KeyCorp's Forecast for Adobe FY2026 Earnings?
• Negative Sentiment: Adobe declined to provide fiscal 2027 guidance after its fiscal third-quarter results. The omission produced a mixed analyst response and increased uncertainty about how quickly generative AI will affect revenue growth, causing analysts to defer more decisive views until the fourth quarter. Analysts Are Punting Their Calls Into the Next Quarter After Adobe’s Mixed Earnings
• Negative Sentiment: The outgoing CEO’s reported $31.5 million share sale is adding to investor concerns about insider confidence, particularly as Adobe manages a CEO transition and competition from AI-native software tools. ADBE Stock On Track for Third Weekly Loss

About Adobe

Adobe Inc NASDAQ: ADBE develops software and services used for digital content creation, document management and digital experiences. The company serves creative professionals, marketers, enterprises, educators and consumers worldwide through subscription-based and cloud-enabled products.

Adobe's Creative Cloud portfolio includes applications such as Photoshop, Illustrator, InDesign, Premiere Pro and After Effects, along with related tools for photography, graphic design, video production and web development.

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