Lmcg Investments LLC Cuts Stake in Adobe Inc. $ADBE

Key Points

• Adobe authorized a $25.0 billion buyback — the repurchase program could cover up to 24.9% of shares and accompanies the launch of a new AI productivity agent aimed at expanding Creative Cloud and Acrobat use cases.
• Adobe reported a quarterly beat with $6.06 EPS vs $5.87 expected and revenue of $6.40 billion (+12% YoY), and set FY2026 EPS guidance of 23.30–23.50.
• Insiders have been selling stock (CEO Shantanu Narayen sold 75,000 shares for ~$18.3M), while analysts have trimmed ratings and the consensus is a "Hold"; the stock is down notably YTD and trades at a reduced P/E.

Lmcg Investments LLC decreased its holdings in Adobe Inc. (NASDAQ:ADBE - Free Report) by 49.6% in the fourth quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 7,323 shares of the software company's stock after selling 7,214 shares during the period. Lmcg Investments LLC's holdings in Adobe were worth $2,563,000 as of its most recent SEC filing.

Other institutional investors also recently made changes to their positions in the company. Vanguard Group Inc. boosted its position in Adobe by 0.8% during the 3rd quarter. Vanguard Group Inc. now owns 41,369,395 shares of the software company's stock valued at $14,593,054,000 after buying an additional 344,816 shares during the period. State Street Corp boosted its position in Adobe by 1.7% during the 3rd quarter. State Street Corp now owns 20,632,009 shares of the software company's stock valued at $7,277,941,000 after buying an additional 352,448 shares during the period. Arrowstreet Capital Limited Partnership boosted its position in Adobe by 53.3% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company's stock valued at $1,981,448,000 after buying an additional 1,952,994 shares during the period. Amundi boosted its position in Adobe by 17.9% during the 3rd quarter. Amundi now owns 4,888,283 shares of the software company's stock valued at $1,711,583,000 after buying an additional 742,646 shares during the period. Finally, Invesco Ltd. boosted its position in Adobe by 9.4% during the 3rd quarter. Invesco Ltd. now owns 4,821,688 shares of the software company's stock valued at $1,700,850,000 after buying an additional 414,526 shares during the period. Hedge funds and other institutional investors own 81.79% of the company's stock.

Adobe Stock Up 2.5%

Shares of NASDAQ ADBE opened at $256.51 on Friday. 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 $422.95. The firm has a market capitalization of $103.68 billion, a PE ratio of 14.94, a price-to-earnings-growth ratio of 0.98 and a beta of 1.42. The firm has a fifty day simple moving average of $250.40 and a two-hundred day simple moving average of $295.01.

Adobe (NASDAQ:ADBE - Get Free Report) last issued its quarterly earnings data on Thursday, March 12th. The software company reported $6.06 EPS for the quarter, topping the consensus estimate of $5.87 by $0.19. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The business had revenue of $6.40 billion during the quarter, compared to analyst estimates of $6.28 billion. During the same period in the prior year, the business earned $5.08 EPS. The company's revenue for the quarter was up 12.0% on a year-over-year basis. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. Equities analysts expect that Adobe Inc. will post 19.14 earnings per share for the current year.

Adobe declared that its Board of Directors has initiated a stock buyback 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 stock through open market purchases. Stock repurchase programs are often an indication that the company's board of directors believes its shares are undervalued.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe unveiled a new AI productivity agent that integrates Acrobat PDF intelligence and can generate rich content (presentations, podcasts, images and text), aiming to deepen Creative Cloud and Acrobat use cases — a product move that could drive adoption, upsells and differentiation. Adobe launches productivity agent with AI-powered PDF tools, podcast creation and interactive sharing
• Positive Sentiment: Coverage highlights a reported ~US$25 billion buyback discussion alongside the AI agent — a large buyback would be EPS‑accretive, signal management confidence, and provide a near‑term floor for the stock if enacted. Will Adobe's (ADBE) US$25 Billion Buyback and New AI Agent Reshape Its Investment Narrative
• Neutral Sentiment: Multiple tech outlets detail the agent’s PDF/creator features and positioning (practical for enterprises and creators). These product details clarify the roadmap but don’t guarantee adoption timing — helpful for long‑term thesis but mixed for immediate revenue impact. Adobe made an AI agent for PDFs
• Neutral Sentiment: Adobe India execs say India is a key innovation center (significant R&D contribution to Firefly and agent work); region-level execution could accelerate product development but is a longer‑term growth input. Firms fixing workflows before deploying agentic AI tools: Prativa Mohapatra, Adobe India
• Negative Sentiment: Analysts and market pieces flag that ADBE is down ~27% YTD and now trades at a low P/E (~10), reflecting investor skepticism on SaaS multiples and the pace of GenAI monetization — that bearish backdrop tempers enthusiasm for product headlines. Adobe Falls 27% YTD, Trades at a Discount: What Should Investors Do?
• Negative Sentiment: Short‑term weakness persists: articles noting the stock “sank” during recent sessions point to technical selling and cautious analyst commentary despite the product launch — risk that the market wants clearer adoption/revenue proof. Adobe Systems (ADBE) Stock Sinks As Market Gains: Here's Why
• Negative Sentiment: Critical op‑eds question Adobe’s long‑term trajectory and draw comparisons to past technology falls, adding to negative sentiment that could pressure shares if buybacks or monetization milestones don’t appear. Adobe: The Next Nokia?

Analyst Ratings Changes

Several equities research analysts have weighed in on ADBE shares. Oppenheimer reissued a "market perform" rating on shares of Adobe in a research report on Friday, March 13th. Wall Street Zen cut shares of Adobe from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. William Blair cut shares of Adobe from an "outperform" rating to a "market perform" rating in a research report on Thursday, March 26th. The Goldman Sachs Group dropped their price target on shares of Adobe from $290.00 to $220.00 and set a "sell" rating for the company in a research report on Friday, March 13th. Finally, Mizuho reissued a "neutral" rating and set a $270.00 price target (down from $315.00) on shares of Adobe in a research report on Monday, April 27th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, sixteen have given a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat.com, Adobe presently has a consensus rating of "Hold" and a consensus target price of $338.15.

Insiders Place Their Bets

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