Lido Advisors LLC Sells 77,330 Shares of Adobe Inc. $ADBE

Key Points

• Lido Advisors LLC cut its Adobe stake by 67.1% in the first quarter, selling 77,330 shares and ending with 37,955 shares valued at about $9.23 million.
• Adobe is facing mixed-to-bearish analyst sentiment, including downgrades and lower price targets from firms like Morgan Stanley, Jefferies, Wells Fargo, and Goldman Sachs amid concerns about AI monetization, subscription revenue pressure, and leadership changes.
• Despite the negative backdrop, Adobe recently reported better-than-expected quarterly results, with EPS and revenue both topping estimates, and its board authorized a $25 billion share buyback.

Lido Advisors LLC reduced its stake in Adobe Inc. (NASDAQ:ADBE - Free Report) by 67.1% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 37,955 shares of the software company's stock after selling 77,330 shares during the period. Lido Advisors LLC's holdings in Adobe were worth $9,226,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors also recently made changes to their positions in the stock. Brighton Jones LLC boosted its holdings in shares of Adobe by 2.1% during the 4th quarter. Brighton Jones LLC now owns 8,068 shares of the software company's stock valued at $3,588,000 after acquiring an additional 167 shares in the last quarter. Sivia Capital Partners LLC increased its holdings in Adobe by 25.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company's stock worth $926,000 after purchasing an additional 486 shares in the last quarter. United Bank increased its holdings in Adobe by 12.8% in the 2nd quarter. United Bank now owns 3,773 shares of the software company's stock worth $1,460,000 after purchasing an additional 428 shares in the last quarter. Schnieders Capital Management LLC. raised its position in Adobe by 7.8% in the second quarter. Schnieders Capital Management LLC. now owns 2,630 shares of the software company's stock valued at $1,017,000 after purchasing an additional 190 shares during the last quarter. Finally, Gamco Investors INC. ET AL raised its position in Adobe by 190.6% in the second quarter. Gamco Investors INC. ET AL now owns 2,764 shares of the software company's stock valued at $1,069,000 after purchasing an additional 1,813 shares during the last quarter. 81.79% of the stock is owned by institutional investors.

Key Stories Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Negative Sentiment: Morgan Stanley downgraded Adobe to underweight from equal-weight and cut its price target to $240 from $365, citing concerns that Adobe’s move toward free basic services could pressure subscription revenue, along with leadership uncertainty and other strategic shifts. Why Adobe (ADBE) Shares Are Sliding Today
• Negative Sentiment: Zacks said Adobe’s large pullback from its 52-week high reflects investor doubts about AI monetization, slower near-term ARR growth, and ongoing leadership changes despite strong product adoption. Adobe Drops 40% From 52-Week High: Buy, Sell or Hold the Stock?
• Negative Sentiment: Adobe’s stock also underperformed peers recently, reinforcing the view that sentiment remains weak relative to other software names. Adobe Inc. stock underperforms Wednesday when compared to competitors
• Neutral Sentiment: CLSA reportedly initiated coverage with a moderate buy rating, which offers a counterpoint to the bearish calls but has not yet offset the broader negative sentiment. Adobe NASDAQ: ADBE Earns Moderate Buy Rating from Analysts at CLSA
• Neutral Sentiment: Insider activity was mixed across the tech sector, with one note highlighting that Eli Lilly CEO David Ricks bought Adobe shares, though this is not enough on its own to change the near-term narrative. Insider Moves Are Sending Mixed Signals Across the Tech Sector

Insider Transactions at Adobe

In other news, CEO Shantanu Narayen sold 75,000 shares of the business's stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $243.54, for a total value of $18,265,500.00. Following the transaction, the chief executive officer owned 359,538 shares in the company, valued at approximately $87,561,884.52. The trade was a 17.26% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director David A. Ricks acquired 10,000 shares of Adobe stock in a transaction dated Thursday, June 25th. The stock was purchased at an average cost 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. The trade was a 130.63% increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 0.20% of the company's stock.

Adobe Trading Down 2.8%

Shares of ADBE stock opened at $212.17 on Friday. Adobe Inc. has a 1-year low of $190.12 and a 1-year high of $376.16. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 0.42. The stock has a market cap of $84.34 billion, a price-to-earnings ratio of 12.14, a PEG ratio of 0.73 and a beta of 1.43. The stock has a 50-day moving average of $227.23 and a 200-day moving average of $252.03.

Adobe (NASDAQ:ADBE - Get Free Report) last posted its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, topping analysts' consensus estimates of $5.82 by $0.14. Adobe had a return on equity of 65.11% and a net margin of 28.69%.The company had revenue of $6.62 billion for the quarter, compared to analyst estimates of $6.45 billion. During the same period in the previous year, the firm earned $5.06 earnings per share. The firm's quarterly revenue was up 12.7% on a year-over-year basis. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. On average, equities research analysts forecast that Adobe Inc. will post 19.81 earnings per share for the current year.

Adobe announced that its Board of Directors has authorized a share buyback program on Tuesday, April 21st that allows the company to buyback $25.00 billion in shares. This buyback authorization allows the software company to purchase up to 24.9% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's management believes its stock is undervalued.

Analyst Upgrades and Downgrades

ADBE has been the topic of several research reports. Weiss Ratings restated a "sell (d+)" rating on shares of Adobe in a report on Wednesday, June 3rd. Jefferies Financial Group dropped their price objective on shares of Adobe from $290.00 to $230.00 and set a "hold" rating for the company in a report on Friday, June 12th. Wells Fargo & Company cut their target price on shares of Adobe from $330.00 to $250.00 and set an "overweight" rating on the stock in a research report on Friday, June 12th. The Goldman Sachs Group reduced their target price on shares of Adobe from $220.00 to $190.00 and set a "sell" rating on the stock in a report on Friday, June 12th. Finally, Mizuho decreased their price target on shares of Adobe from $270.00 to $245.00 and set a "neutral" rating for the company in a research report on Friday, June 12th. Seven research analysts have rated the stock with a Buy rating, twenty-one have assigned a Hold rating and six have issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $271.30.

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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