GRIMES & Co WEALTH MANAGEMENT LLC Sells 27,668 Shares of Adobe Inc. $ADBE

Key Points

• GRIMES & Co Wealth Management cut its Adobe stake by 83.8% in the third quarter, selling 27,668 shares and retaining 5,331 shares valued at about $1.28 million.
• Adobe topped quarterly earnings and revenue estimates, reporting EPS of $6.13 and revenue of $6.76 billion, with revenue up 12.9% year over year.
• Analyst sentiment is mixed, with a consensus “Hold” rating; reports cite potential from AI and freemium offerings alongside concerns about competition and softer recurring-revenue trends.

GRIMES & Co WEALTH MANAGEMENT LLC lessened its position in Adobe Inc. (NASDAQ:ADBE - Free Report) by 83.8% during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 5,331 shares of the software company's stock after selling 27,668 shares during the quarter. GRIMES & Co WEALTH MANAGEMENT LLC's holdings in Adobe were worth $1,279,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also added to or reduced their stakes in the company. BlackRock Inc. bought a new position in shares of Adobe during the 2nd quarter valued at $8,437,821,000. Johnson Financial Group Inc. purchased a new position in Adobe in the 2nd quarter worth $2,289,000. Biondo Investment Advisors LLC purchased a new position in Adobe in the 2nd quarter worth $2,647,000. Summit Global Investments bought a new stake in Adobe in the second quarter worth $1,401,000. Finally, Tejara Capital Ltd bought a new stake in Adobe in the second quarter worth $3,461,000. Hedge funds and other institutional investors own 81.79% of the company's stock.

More Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe is bringing licensed music from Universal Music Group and Warner Music Group to Premiere mobile. The added music catalog could make the video-editing app more useful and attractive to creators, though the reports did not describe a financial contribution. Forbes article on Adobe’s music deals
• Neutral Sentiment: Analyst views remain split: some see potential in Adobe’s freemium offerings and AI, while others are wary of softer annual recurring revenue (ARR) trends and competition. A compiled fair-value estimate was trimmed from $275.06 to $268.30, suggesting somewhat less estimated upside. Analyst views on Adobe fair value
• Negative Sentiment: Investors may be concerned that AI could challenge Adobe’s competitive edge, as new AI tools and software alternatives raise questions about the durability of its business and pricing power. This concern adds to pressure from competition and softer ARR trends. Article on AI and Adobe’s competitive edge

Adobe Trading Down 2.1%

Shares of ADBE opened at $246.14 on Wednesday. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 0.41. The stock has a market capitalization of $95.80 billion, a P/E ratio of 13.74, a PEG ratio of 0.88 and a beta of 1.37. Adobe Inc. has a twelve month low of $190.12 and a twelve month high of $362.71. The firm has a fifty day simple moving average of $253.29 and a two-hundred day simple moving average of $250.40.

Adobe (NASDAQ:ADBE - Get Free Report) last posted its quarterly earnings data 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 business had revenue of $6.76 billion during the quarter, compared to the consensus estimate of $6.69 billion. During the same quarter in the prior year, the company earned $5.31 earnings per share. The firm's quarterly revenue was up 12.9% compared to the same quarter last year. Adobe has set its Q4 2026 guidance at 6.300-6.350 EPS and its FY 2026 guidance at 24.450-24.500 EPS. On average, research analysts anticipate that Adobe Inc. will post 20.01 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the company. CLSA assumed coverage on Adobe in a research note on Monday, July 20th. They set an "outperform" rating and a $300.00 price objective on the stock. Wells Fargo & Company downgraded Adobe from an "overweight" rating to an "underweight" rating and decreased their price objective for the stock from $270.00 to $225.00 in a report on Monday, October 12th. Sanford C. Bernstein lowered their target price on Adobe from $379.00 to $373.00 and set an "outperform" rating for the company in a research note on Friday, September 11th. Stifel Nicolaus boosted their target price on Adobe from $200.00 to $225.00 and gave the company a "hold" rating in a research note on Wednesday, September 9th. Finally, Morgan Stanley restated an "underweight" rating on shares of Adobe in a report on Friday, September 11th. Nine research analysts have rated the stock with a Buy rating, twenty have issued a Hold rating and seven have given a Sell rating to the company. According to MarketBeat.com, Adobe has a consensus rating of "Hold" and a consensus price target of $283.90.

Insider Buying and Selling

In other news, CEO Shantanu Narayen sold 50,500 shares of the stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $249.57, for a total value of $12,603,285.00. Following the completion of the sale, the chief executive officer directly owned 238,724 shares of the company's stock, valued at $59,578,348.68. This represents a 17.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.20% of the stock is currently owned by insiders.

Adobe Profile

Adobe Inc is a global software company that develops digital tools for creative professionals, businesses, marketers, and individual users. Its products help customers create, edit, publish, manage, and measure digital content across websites, mobile applications, documents, and other media.

The company's Creative Cloud portfolio includes applications such as Photoshop, Illustrator, InDesign, Premiere Pro, and Acrobat. Adobe also offers Document Cloud, which provides tools for creating, editing, sharing, signing, and managing digital documents, and Experience Cloud, a suite of solutions for digital marketing, analytics, commerce, customer journeys, and content management.

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