First Merchants Corp Decreases Holdings in Adobe Inc. $ADBE

Key Points

• First Merchants Corp cut its Adobe stake by 49.6% in Q4, selling 4,982 shares and leaving 5,072 shares worth about $1.775 million.
• Adobe beat Q1 estimates with EPS $6.06 and $6.40B revenue, gave FY2026 EPS guidance of 23.30–23.50, and is pushing AI-driven growth via a NVIDIA partnership, the Semrush deal, and a $25B buyback program.
• Market sentiment is mixed: several analysts trimmed price targets and the consensus rating is "Hold," while a CEO transition and an investor investigation pose near-term overhangs.

First Merchants Corp reduced its position in Adobe Inc. (NASDAQ:ADBE - Free Report) by 49.6% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 5,072 shares of the software company's stock after selling 4,982 shares during the quarter. First Merchants Corp's holdings in Adobe were worth $1,775,000 at the end of the most recent reporting period.

Other large investors have also made changes to their positions in the company. Measured Wealth Private Client Group LLC acquired a new stake in shares of Adobe in the 3rd quarter worth $26,000. KERR FINANCIAL PLANNING Corp acquired a new stake in Adobe in the third quarter worth about $27,000. Caitlin John LLC acquired a new stake in Adobe in the third quarter worth about $28,000. Beacon Financial Strategies CORP purchased a new stake in shares of Adobe during the fourth quarter worth about $28,000. Finally, Chesapeake Asset Management LLC acquired a new position in shares of Adobe during the fourth quarter valued at about $31,000. 81.79% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Adobe

In other Adobe news, CFO Daniel Durn sold 1,646 shares of the company's 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 sale, the chief financial officer directly owned 41,995 shares of the company's stock, valued at approximately $12,382,225.75. This represents a 3.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.20% of the stock is owned by corporate insiders.

Adobe Stock Performance

ADBE opened at $237.25 on Thursday. The company has a current ratio of 0.91, a quick ratio of 1.00 and a debt-to-equity ratio of 0.47. Adobe Inc. has a 12-month low of $233.79 and a 12-month high of $422.95. The firm has a 50 day moving average of $270.87 and a two-hundred day moving average of $317.11. The firm has a market capitalization of $97.39 billion, a PE ratio of 13.82, a P/E/G ratio of 0.93 and a beta of 1.53.

Adobe (NASDAQ:ADBE - Get Free Report) last released its quarterly earnings data on Thursday, March 12th. The software company reported $6.06 EPS for the quarter, beating the consensus estimate of $5.87 by $0.19. The business had revenue of $6.40 billion for the quarter, compared to the consensus estimate of $6.28 billion. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The business's revenue for the quarter was up 12.0% on a year-over-year basis. During the same period in the prior year, the firm earned $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. On average, analysts anticipate that Adobe Inc. will post 16.65 EPS for the current year.

Analyst Upgrades and Downgrades

ADBE has been the subject of several research analyst reports. TD Cowen decreased their price objective on shares of Adobe from $400.00 to $325.00 and set a "hold" rating for the company in a research report on Tuesday, March 10th. Royal Bank Of Canada restated an "outperform" rating and set a $430.00 price target on shares of Adobe in a research note on Monday, March 9th. Piper Sandler decreased their price target on shares of Adobe from $330.00 to $280.00 and set a "neutral" rating for the company in a report on Friday, March 13th. The Goldman Sachs Group dropped their price objective on shares of Adobe from $290.00 to $220.00 and set a "sell" rating on the stock in a report on Friday, March 13th. Finally, Mizuho reduced their target price on Adobe from $340.00 to $315.00 and set an "outperform" rating for the company in a research note on Friday, March 13th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, thirteen have issued a Hold rating and five have given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $343.88.

More Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Strategic AI partnership with NVIDIA positions Adobe to accelerate generative-AI content creation and marketing automation, which could expand product moat and revenue upside from Firefly and marketing suites. Adobe (ADBE)-NVIDIA Alliance Targets Next Wave of AI Content Creation
• Positive Sentiment: Adobe is acquiring Semrush for ~$1.9B and linking that deal to its NVIDIA work—this accelerates Adobe’s push into AI-driven marketing, search and analytics, diversifying growth beyond creative tools. Adobe Links Semrush Deal And NVIDIA Alliance To AI Marketing Future
• Positive Sentiment: Q1 results beat consensus on both revenue ($6.40B) and EPS ($6.06); Adobe also has a large $25B buyback program and healthy free cash flow—factors that support valuations and potential per‑share upside. Adobe (ADBE) Reports Strong Earnings Despite Leadership Transition Concern
• Positive Sentiment: Analyst and momentum coverage highlights Adobe as a momentum/value candidate for some investors given lower price levels and long-term AI opportunities. Here's Why Adobe Systems (ADBE) is a Strong Momentum Stock
• Neutral Sentiment: Telestream announced tighter integration with Adobe-centric pipelines and workflow automation—incremental product ecosystem wins that may help enterprise adoption but are not transformational alone. Telestream Unlocks Adobe-Centric Media Pipeline and Streamlined Workflow Automation
• Neutral Sentiment: Marketing promotions (50% Firefly offers) and product growth (Firefly ARR gains referenced in social summaries) support adoption but are short‑term demand drivers. Turn images into video and save 50% for 12 months with Adobe Firefly
• Neutral Sentiment: Talent moves — a former Adobe architect joined NeutronX — are notable industry signals but have limited direct impact on Adobe’s near-term financials. NeutronX Appoints Former Adobe Enterprise Architect
• Negative Sentiment: Investor litigation/investigation alert from Scott+Scott targets Adobe’s directors and officers for alleged fiduciary breaches—adds legal/overhang risk and can pressure sentiment if escalated. ADOBE, INC. INVESTOR ALERT: Scott+Scott Investigates Adobe Directors and Officers
• Negative Sentiment: CEO Shantanu Narayen’s announced transition continues to weigh on sentiment and has prompted analyst resets; leadership uncertainty is cited repeatedly as the main near-term driver of share weakness despite solid earnings. Adobe Stock (ADBE) Opinions on Earnings and CEO Transition
• Negative Sentiment: Broader software‑sector selling and competitive threats from new browser/AI tools (e.g., Claude and free AI generators) are cited as additional negative pressure on Adobe’s multiples and growth expectations. Adobe (ADBE) Reports Strong Earnings Despite Leadership Transition Concern

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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