Letko Brosseau & Associates Inc. Trims Stock Holdings in Adobe Inc. $ADBE

Key Points

• Letko Brosseau & Associates trimmed its Adobe stake by 4.0% in the fourth quarter, selling 9,414 shares and leaving it with 226,696 shares valued at about $79.3 million.
• Insider selling continued at Adobe, including CEO Shantanu Narayen’s sale of 75,000 shares and CAO Jillian Forusz’s sale of 755 shares; insiders sold 77,091 shares total over the last three months.
• Adobe’s latest quarter beat earnings and revenue estimates, and the board authorized a $25 billion share buyback, but analysts still rate the stock mostly Hold amid concerns about AI competition and upcoming Q2 results.

Letko Brosseau & Associates Inc. decreased its holdings in Adobe Inc. (NASDAQ:ADBE - Free Report) by 4.0% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 226,696 shares of the software company's stock after selling 9,414 shares during the period. Adobe accounts for about 1.3% of Letko Brosseau & Associates Inc.'s holdings, making the stock its 28th biggest position. Letko Brosseau & Associates Inc. owned 0.06% of Adobe worth $79,341,000 at the end of the most recent quarter.

Several other large investors have also recently modified their holdings of ADBE. Western Pacific Wealth Management LP purchased a new position in shares of Adobe in the fourth quarter worth about $26,000. Measured Wealth Private Client Group LLC purchased a new position in shares of Adobe in the third quarter worth about $26,000. KERR FINANCIAL PLANNING Corp purchased a new position in shares of Adobe in the third quarter worth about $27,000. Caitlin John LLC purchased a new position in shares of Adobe in the third quarter worth about $28,000. Finally, Beacon Financial Strategies CORP purchased a new position in shares of Adobe in the fourth quarter worth about $28,000. Hedge funds and other institutional investors own 81.79% of the company's stock.

Insider Buying and Selling at Adobe

In other Adobe news, CAO Jillian Forusz sold 755 shares of Adobe stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $246.25, for a total transaction of $185,918.75. Following the completion of the sale, the chief accounting officer directly owned 3,521 shares in the company, valued at $867,046.25. The trade was a 17.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Shantanu Narayen sold 75,000 shares of Adobe stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $243.54, for a total transaction of $18,265,500.00. Following 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. Insiders sold a total of 77,091 shares of company stock worth $18,782,773 over the last three months. 0.20% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the stock. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating on shares of Adobe in a research note on Friday, March 13th. Dbs Bank lowered shares of Adobe from a "moderate buy" rating to a "hold" rating in a research report on Tuesday, May 19th. HSBC set a $302.00 price objective on shares of Adobe in a research report on Friday, February 13th. Citigroup raised their price objective on shares of Adobe from $253.00 to $264.00 and gave the company a "neutral" rating in a research report on Friday. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of Adobe in a research report on Wednesday, June 3rd. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, seventeen have assigned a Hold rating and five have assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and an average price target of $331.65.

Adobe Price Performance

ADBE stock opened at $237.88 on Wednesday. The firm has a 50 day moving average of $245.94 and a 200-day moving average of $280.44. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.47. Adobe Inc. has a 12 month low of $224.13 and a 12 month high of $419.82. The firm has a market capitalization of $96.15 billion, a P/E ratio of 13.85, a price-to-earnings-growth ratio of 0.96 and a beta of 1.42.

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 analysts' consensus estimates of $5.87 by $0.19. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The company had revenue of $6.40 billion during the quarter, compared to analyst estimates of $6.28 billion. During the same period last year, the business earned $5.08 earnings per share. Adobe's revenue was up 12.0% compared to the same quarter last year. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. As a group, sell-side analysts predict that Adobe Inc. will post 19.14 earnings per share for the current fiscal year.

Adobe announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, April 21st that authorizes the company to buyback $25.00 billion in shares. This buyback authorization authorizes the software company to repurchase up to 24.9% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board of directors believes its stock is undervalued.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe’s Firefly and GenStudio products are still seen as key AI growth drivers, and investors are watching for signs that these tools can help reignite revenue growth. Should You Buy, Sell or Hold Adobe Stock Before Q2 Earnings?
• Positive Sentiment: Some analysts remain constructive enough to raise price targets, suggesting there is still confidence in Adobe’s long-term cash flow and product franchise. Adobe Falls 23% YTD As Analysts Raise Questions Ahead Of Earnings
• Neutral Sentiment: Adobe is scheduled to report fiscal Q2 results on June 11, and investors are positioning ahead of the release rather than waiting for the numbers. Adobe Stock Price Forecast — What Analysts Expect Ahead June 11 Earnings
• Neutral Sentiment: Short-interest data showed no meaningful change, so the latest move appears driven more by sentiment and earnings caution than by a new bearish trading setup.
• Negative Sentiment: Several reports warn that Adobe may face tougher competition in generative AI, macroeconomic softness, and elevated expectations into earnings, all of which could pressure results or guidance. Should You Buy, Sell or Hold Adobe Stock Before Q2 Earnings?
• Negative Sentiment: Market commentary also highlights leadership uncertainty, with a likely CEO transition and questions about whether Adobe needs bolder AI strategy changes, adding another layer of investor concern. Adobe needs a new CEO to make bold AI moves, and its choice could be revealed on Thursday
• Negative Sentiment: Analysts and commentators describe Adobe as a “frustrating” stock heading into earnings, reflecting skepticism that upcoming results will be strong enough to reverse the recent slide. Adobe Sinks (ADBE) as Analysts Clash Over ‘Extremely Frustrating Stock’ in Q2 Preview

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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