Harel Insurance Investments & Financial Services Ltd. Reduces Stake in Adobe Inc. $ADBE

Key Points

• Harel Insurance Investments cut its Adobe stake by 15.3% in the first quarter, selling 5,427 shares and leaving it with 30,089 shares valued at about $7.3 million.
• Adobe reported strong quarterly results, with EPS of $5.96 versus $5.82 expected and revenue of $6.62 billion versus $6.45 billion expected. Revenue rose 12.7% year over year.
• The company’s board authorized a $25 billion share repurchase program, and analysts currently rate Adobe a consensus Hold with an average price target of $275.

Harel Insurance Investments & Financial Services Ltd. lowered its stake in Adobe Inc. (NASDAQ:ADBE - Free Report) by 15.3% in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 30,089 shares of the software company's stock after selling 5,427 shares during the quarter. Harel Insurance Investments & Financial Services Ltd.'s holdings in Adobe were worth $7,313,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also added to or reduced their stakes in the company. State Street Corp grew its stake in Adobe by 1.7% during the third quarter. State Street Corp now owns 20,632,009 shares of the software company's stock valued at $7,277,941,000 after acquiring an additional 352,448 shares in the last quarter. Geode Capital Management LLC lifted its stake in Adobe by 3.7% in the 4th quarter. Geode Capital Management LLC now owns 11,531,678 shares of the software company's stock worth $4,027,170,000 after purchasing an additional 414,049 shares in the last quarter. Norges Bank bought a new position in Adobe in the 4th quarter valued at $2,275,165,000. Arrowstreet Capital Limited Partnership boosted its holdings in Adobe by 10.9% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 6,228,503 shares of the software company's stock valued at $2,179,914,000 after purchasing an additional 611,358 shares during the period. Finally, Invesco Ltd. grew its position in shares of Adobe by 6.2% during the 4th quarter. Invesco Ltd. now owns 5,119,025 shares of the software company's stock valued at $1,791,607,000 after purchasing an additional 297,337 shares in the last quarter. Hedge funds and other institutional investors own 81.79% of the company's stock.

Adobe Stock Up 1.7%

ADBE opened at $224.56 on Thursday. The business's fifty day simple moving average is $229.32 and its 200 day simple moving average is $257.16. Adobe Inc. has a 52 week low of $190.12 and a 52 week high of $376.16. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 0.42. The stock has a market cap of $89.26 billion, a PE ratio of 12.85, a P/E/G ratio of 0.74 and a beta of 1.43.

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 (EPS) for the quarter, topping the consensus estimate of $5.82 by $0.14. The firm had revenue of $6.62 billion during the quarter, compared to analyst estimates of $6.45 billion. Adobe had a return on equity of 65.11% and a net margin of 28.69%.The company's revenue was up 12.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $5.06 earnings per share. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. As a group, research analysts expect that Adobe Inc. will post 19.81 earnings per share for the current fiscal year.

Adobe announced that its board has authorized a stock repurchase program on Tuesday, April 21st that allows the company to repurchase $25.00 billion in shares. This repurchase authorization allows the software company to repurchase up to 24.9% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's leadership believes its stock is undervalued.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the stock. Piper Sandler decreased their price target on shares of Adobe from $280.00 to $240.00 and set a "neutral" rating on the stock in a report on Friday, June 12th. Barclays dropped their price objective on Adobe from $275.00 to $250.00 and set an "equal weight" rating for the company in a research note on Friday, June 12th. HSBC upgraded Adobe from a "hold" rating to a "buy" rating and upped their target price for the stock from $282.00 to $308.00 in a research note on Thursday, July 2nd. BMO Capital Markets lowered their price target on Adobe from $285.00 to $230.00 and set a "market perform" rating on the stock in a report on Friday, June 12th. Finally, Phillip Securities downgraded Adobe from a "strong-buy" rating to a "hold" rating in a research report on Monday, June 29th. Six investment analysts have rated the stock with a Buy rating, twenty-two have assigned a Hold rating and five have given a Sell rating to the company's stock. According to data from MarketBeat, Adobe presently has a consensus rating of "Hold" and an average target price of $275.00.

Trending Headlines about Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe is drawing bullish attention after reports that AI-first net new annualized recurring revenue is running at roughly 3x last year’s level, and that the company is acquiring Topaz Labs to deepen its AI-powered creative tools. Adobe (ADBE) Buys Topaz Labs As AI Revenue Runs At 3x Prior Year
• Positive Sentiment: Several technical and momentum-focused notes point to improving trading sentiment, including a breakout above the 50-day moving average and a Zacks ranking that flags Adobe as a top momentum stock. Adobe Systems (ADBE) Recently Broke Out Above the 50-Day Moving Average
• Positive Sentiment: Industry research highlighting fast-growing demand for content intelligence and generative AI could support Adobe’s long-term growth narrative, especially given its role in enterprise content creation and management. Content Intelligence Market to Reach $39.88 Billion by 2035 as Generative AI Transforms Enterprise Content Operations
• Neutral Sentiment: Commentary from Adobe’s CMO about AI changing brand discovery underscores the company’s strategic relevance in AI-driven marketing, but it is more of a narrative update than a direct financial catalyst. Adobe CMO Lara Balazs Says AI Is Rewriting Brand Discovery
• Neutral Sentiment: Analyst-style pieces argue Adobe’s AI growth is helping challenge the bear case, but the articles are largely opinion-based and do not add new hard numbers. Adobe’s (ADBE) AI Growth Challenges the Bear Case
• Negative Sentiment: Software stocks, including Adobe, came under pressure after IBM warned on revenue, raising concern that enterprise customers may be tightening software budgets to fund other IT spending. IBM Warning Hits Software Stocks
• Negative Sentiment: Another market-wrap article noted Adobe trading lower alongside peers after the IBM warning, reinforcing worries about enterprise spending and near-term demand for software vendors. Adobe, ServiceNow, and Appian Stocks Trade Down, What You Need To Know
• Negative Sentiment: A Seeking Alpha piece questions whether Adobe’s creativity and AI strategy are enough to justify the stock’s valuation, suggesting some investors still see upside limits. Adobe: Creativity Is Necessary To Justify The Stock Price

Insider Transactions at Adobe

In other Adobe news, CFO Daniel Durn sold 1,336 shares of Adobe stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $248.02, for a total transaction of $331,354.72. Following the transaction, the chief financial officer directly owned 42,833 shares of the company's stock, valued at approximately $10,623,440.66. This trade represents a 3.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Shantanu Narayen sold 75,000 shares of the business's stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $243.54, for a total transaction of $18,265,500.00. Following the completion of the sale, the chief executive officer owned 359,538 shares of the company's stock, valued at approximately $87,561,884.52. The trade was a 17.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 77,091 shares of company stock worth $18,782,773. 0.20% of the stock is owned by corporate insiders.

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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