F m Investments LLC Reduces Position in Adobe Inc. $ADBE

Key Points

• F m Investments LLC trimmed its stake in Adobe by 22.3% in the quarter, selling 10,490 shares and now holding 36,464 shares valued at about $12.86 million.
• Adobe beat Q1 estimates (EPS $6.06, revenue $6.40B) and set FY26 guidance of 23.30–23.50 EPS, citing AI‑led ARR growth as a driver.
• Despite the beat, the stock dropped roughly 7.6% amid a ~$150M DOJ settlement, CEO succession uncertainty and analyst downgrades that pressured sentiment.

F m Investments LLC trimmed its position in Adobe Inc. (NASDAQ:ADBE - Free Report) by 22.3% during the third quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 36,464 shares of the software company's stock after selling 10,490 shares during the quarter. F m Investments LLC's holdings in Adobe were worth $12,863,000 at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of the company. Riverbend Wealth Management LLC grew its stake in shares of Adobe by 1.8% during the third quarter. Riverbend Wealth Management LLC now owns 1,668 shares of the software company's stock worth $588,000 after purchasing an additional 29 shares in the last quarter. Intellus Advisors LLC raised its stake in Adobe by 1.6% in the second quarter. Intellus Advisors LLC now owns 1,860 shares of the software company's stock valued at $720,000 after buying an additional 30 shares in the last quarter. Beacon Financial Advisory LLC lifted its holdings in Adobe by 5.5% during the 3rd quarter. Beacon Financial Advisory LLC now owns 577 shares of the software company's stock worth $204,000 after buying an additional 30 shares during the last quarter. MCF Advisors LLC lifted its holdings in Adobe by 20.8% during the 3rd quarter. MCF Advisors LLC now owns 174 shares of the software company's stock worth $61,000 after buying an additional 30 shares during the last quarter. Finally, Dakota Community Bank & Trust NA boosted its position in shares of Adobe by 12.8% during the 2nd quarter. Dakota Community Bank & Trust NA now owns 274 shares of the software company's stock worth $106,000 after acquiring an additional 31 shares in the last quarter. 81.79% of the stock is owned by hedge funds and other institutional investors.

Adobe Trading Down 7.6%

ADBE opened at $249.32 on Friday. The firm has a market cap of $102.35 billion, a price-to-earnings ratio of 14.52, a price-to-earnings-growth ratio of 1.06 and a beta of 1.53. Adobe Inc. has a 52 week low of $244.28 and a 52 week high of $422.95. The business's 50 day moving average is $283.88 and its two-hundred day moving average is $323.22. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.53.

Adobe (NASDAQ:ADBE - Get Free Report) last posted its quarterly earnings data on Thursday, March 12th. The software company reported $6.06 earnings per share for the quarter, beating the consensus estimate of $5.87 by $0.19. The business had revenue of $6.40 billion during the quarter, compared to the consensus estimate of $6.28 billion. Adobe had a return on equity of 64.23% and a net margin of 29.48%.The company's revenue was up 12.0% compared to the same quarter last year. During the same period in the prior year, the company earned $5.08 earnings per share. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. On average, research analysts predict that Adobe Inc. will post 16.65 EPS for the current year.

Insiders Place Their Bets

In other Adobe news, CFO Daniel Durn sold 1,646 shares of Adobe stock in a transaction on Tuesday, January 27th. The shares were sold at an average price of $294.85, for a total value of $485,323.10. Following the transaction, the chief financial officer directly owned 41,995 shares in the company, valued at approximately $12,382,225.75. The trade was a 3.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.20% of the stock is currently owned by corporate insiders.

Trending Headlines about Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Record Q1 results and AI traction — Adobe posted above‑consensus Q1 revenue and EPS and highlighted rapid AI-first ARR growth; management framed the quarter as an AI‑led acceleration, which supports the company’s long‑term revenue mix and margins. Adobe Delivers Record Q1 Results
• Neutral Sentiment: Guidance shows upside but raises questions — Adobe’s FY26 EPS range and Q2 outlook exceeded consensus, yet investors parsed the details (ARR cadence, freemium strategy) for sustainability before rewarding the stock. Adobe Q1 earnings & guidance
• Neutral Sentiment: Short‑interest figures reported inconsistently — publicly posted short data showed anomalous/zero values (NaN/0), so current short‑squeeze risk or bearish positioning is unclear.
• Negative Sentiment: DOJ settlement adds immediate cost and reputational overhang — Adobe agreed to a $150M package (roughly $75M cash + $75M in free services) to resolve claims about hard‑to‑cancel subscriptions, creating a headline liability and consumer‑facing remediation burden. Adobe agrees to pay $150 million to resolve alleged violations
• Negative Sentiment: CEO succession uncertainty — Shantanu Narayen announced he will step down once a successor is named (he will remain board chair), creating near‑term leadership uncertainty at a critical time for Adobe’s AI strategy and execution. Shantanu Narayen Announces Decision to Transition as Adobe's CEO
• Negative Sentiment: Analyst downgrades and lower targets amplify selling — Several firms cut price targets or moved to neutral/equal‑weight, citing CEO transition and mixed ARR trends, which pressured sentiment and triggered further mark‑downs. These Analysts Cut Their Forecasts On Adobe Following Q1 Earnings

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the company. TD Cowen cut their target price on Adobe from $400.00 to $325.00 and set a "hold" rating on the stock in a research report on Tuesday. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating on shares of Adobe in a report on Friday. Stifel Nicolaus cut their price objective on shares of Adobe from $450.00 to $400.00 and set a "buy" rating on the stock in a report on Friday. Morgan Stanley reduced their price objective on shares of Adobe from $425.00 to $365.00 and set an "equal weight" rating for the company in a research report on Friday. Finally, UBS Group lowered their target price on shares of Adobe from $340.00 to $290.00 and set a "neutral" rating for the company in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, twelve have given a Hold rating and five have assigned a Sell rating to the company. According to MarketBeat.com, Adobe currently has an average rating of "Hold" and an average target price of $347.85.

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.

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