Grandfield & Dodd LLC Acquires New Holdings in Adobe Inc. $ADBE

Key Points

• Grandfield & Dodd LLC initiated a position in Adobe during the second quarter, purchasing 7,347 shares valued at approximately $1.5 million. Institutional investors collectively own 81.79% of Adobe’s stock.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $269.81; individual firms set targets ranging from $250 to $308.
• Adobe recently exceeded quarterly earnings and revenue expectations, while revenue grew 12.7% year over year. The company also authorized a $25 billion stock buyback, allowing repurchases of up to 24.9% of outstanding shares.

Grandfield & Dodd LLC bought a new position in Adobe Inc. (NASDAQ:ADBE - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 7,347 shares of the software company's stock, valued at approximately $1,506,000.

A number of other large investors have also recently added to or reduced their stakes in ADBE. Western Pacific Wealth Management LP bought a new position in shares of Adobe in the fourth quarter valued at approximately $26,000. Measured Wealth Private Client Group LLC acquired a new stake in shares of Adobe in the third quarter worth $26,000. TrustBank bought a new stake in shares of Adobe during the 4th quarter worth $28,000. Lloyd Advisory Services LLC. acquired a new position in Adobe in the 4th quarter valued at $31,000. Finally, Sankala Group LLC acquired a new position in Adobe in the 4th quarter valued at $31,000. Institutional investors own 81.79% of the company's stock.

Analyst Upgrades and Downgrades

ADBE has been the subject of a number of research analyst reports. CLSA assumed coverage on shares of Adobe in a research report on Monday, July 20th. They set an "outperform" rating and a $300.00 target price for the company. Citigroup reaffirmed a "market perform" rating on shares of Adobe in a research report on Friday, June 12th. HSBC upgraded Adobe from a "hold" rating to a "buy" rating and lifted their price objective for the stock from $282.00 to $308.00 in a research note on Thursday, July 2nd. Wells Fargo & Company cut their price objective on Adobe from $330.00 to $250.00 and set an "overweight" rating for the company in a research report on Friday, June 12th. Finally, Phillip Securities downgraded Adobe from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 29th. Seven equities research analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $269.81.

Adobe Price Performance

NASDAQ:ADBE opened at $254.04 on Tuesday. The stock has a market cap of $100.98 billion, a P/E ratio of 14.53, a PEG ratio of 0.89 and a beta of 1.40. Adobe Inc. has a one year low of $190.12 and a one year high of $370.86. The company has a fifty day moving average price of $228.82 and a 200 day moving average price of $245.32. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.75 and a quick ratio of 0.75.

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

Adobe announced that its Board of Directors has authorized a stock buyback program on Tuesday, April 21st that permits the company to buyback $25.00 billion in outstanding shares. This buyback authorization permits the software company to buy up to 24.9% of its shares through open market purchases. Shares buyback programs are often a sign that the company's management believes its shares are undervalued.

Insider Activity

In related news, Director David A. Ricks bought 10,000 shares of Adobe stock in a transaction that occurred on Thursday, June 25th. The stock was acquired at an average price of $194.51 per share, for a total transaction of $1,945,100.00. Following the completion of the purchase, the director owned 17,655 shares in the company, valued at approximately $3,434,074.05. This represents a 130.63% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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 in the company, valued at approximately $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. 0.20% of the stock is currently owned by company insiders.

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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