Longfellow Investment Management Co. LLC Boosts Holdings in Adobe Inc. $ADBE

Key Points

• Longfellow Investment Management dramatically increased its Adobe stake in Q4, boosting holdings by 47,600% to 4,293 shares valued at about $1.5 million.
• Adobe continues to attract major institutional ownership, with firms like Vanguard, State Street, and Geode adding shares; overall, institutions hold about 81.79% of the stock.
• Analyst sentiment is mixed: several firms cut price targets or downgraded the stock, and the consensus rating is Hold with an average target price of $337.62, even as Adobe posted a recent earnings beat and approved a $25 billion buyback.

Longfellow Investment Management Co. LLC raised its holdings in Adobe Inc. (NASDAQ:ADBE - Free Report) by 47,600.0% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 4,293 shares of the software company's stock after buying an additional 4,284 shares during the quarter. Longfellow Investment Management Co. LLC's holdings in Adobe were worth $1,503,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in ADBE. Vanguard Group Inc. raised its holdings in shares of Adobe by 0.8% in the 3rd quarter. Vanguard Group Inc. now owns 41,369,395 shares of the software company's stock worth $14,593,054,000 after purchasing an additional 344,816 shares during the period. State Street Corp raised its holdings in shares of Adobe by 1.7% in the 3rd quarter. State Street Corp now owns 20,632,009 shares of the software company's stock worth $7,277,941,000 after purchasing an additional 352,448 shares during the period. Geode Capital Management LLC raised its holdings in shares of 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 during the period. Norges Bank purchased a new position in shares of Adobe in the 4th quarter worth about $2,275,165,000. Finally, Arrowstreet Capital Limited Partnership raised its holdings in shares of Adobe by 53.3% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company's stock worth $1,981,448,000 after purchasing an additional 1,952,994 shares during the period. Hedge funds and other institutional investors own 81.79% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have recently commented on the company. BMO Capital Markets cut their price objective on Adobe from $375.00 to $285.00 and set a "market perform" rating on the stock in a report on Friday, March 13th. Argus restated a "hold" rating on shares of Adobe in a report on Monday, March 16th. William Blair downgraded Adobe from an "outperform" rating to a "market perform" rating in a report on Thursday, March 26th. Jefferies Financial Group dropped their target price on Adobe from $400.00 to $290.00 and set a "hold" rating on the stock in a report on Monday, February 23rd. Finally, Royal Bank Of Canada reiterated an "outperform" rating and set a $350.00 target price on shares of Adobe in a report on Friday. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, seventeen have given a Hold rating and five have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $337.62.

More Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Royal Bank of Canada reaffirmed its Outperform rating on Adobe and kept a $350 price target, implying meaningful upside from current levels. This suggests some analysts still see attractive valuation and earnings potential ahead. Benzinga
• Positive Sentiment: Multiple previews ahead of Adobe’s June 11 fiscal Q2 earnings report say Wall Street expects earnings growth and a potential beat, which could support the stock if results and guidance come in stronger than expected. Yahoo Finance
• Neutral Sentiment: Coverage this week highlighted that Adobe is getting closer to choosing its next CEO, with internal and external candidates under review. Leadership transition talk adds uncertainty, but it could also be viewed as a strategic reset in the AI era. Yahoo Finance
• Negative Sentiment: Investor anxiety continues to build around Adobe’s competitive moat, with one recent article arguing that AI could threaten the “Adobe era” and help explain why the stock has fallen sharply from its 2025 highs. The Motley Fool
• Negative Sentiment: Recent market commentary also noted Adobe has been falling more than the broader market, reflecting ongoing skepticism ahead of earnings and broader concerns about growth durability. Zacks

Adobe Stock Performance

Shares of NASDAQ:ADBE opened at $251.44 on Friday. Adobe Inc. has a one year low of $224.13 and a one year high of $419.82. The business's 50-day simple moving average is $245.80 and its 200 day simple moving average is $281.86. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.91 and a current ratio of 0.91. The company has a market cap of $101.63 billion, a P/E ratio of 14.64, a PEG ratio of 0.98 and a beta of 1.42.

Adobe (NASDAQ:ADBE - Get Free Report) last issued its quarterly earnings data on Thursday, March 12th. The software company reported $6.06 earnings per share for the quarter, beating analysts' consensus estimates of $5.87 by $0.19. Adobe had a return on equity of 64.48% and a net margin of 29.48%.The firm had revenue of $6.40 billion during the quarter, compared to analyst estimates of $6.28 billion. During the same quarter last year, the firm earned $5.08 EPS. Adobe's quarterly revenue 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. On average, sell-side analysts forecast that Adobe Inc. will post 19.14 earnings per share for the current fiscal year.

Adobe declared that its Board of Directors has approved a stock repurchase program on Tuesday, April 21st that permits the company to repurchase $25.00 billion in shares. This repurchase authorization permits the software company to buy up to 24.9% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's management believes its shares are undervalued.

Insider Buying and Selling at Adobe

In other Adobe news, CFO Daniel Durn sold 1,336 shares of the firm's stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $248.02, for a total transaction of $331,354.72. Following the completion of the sale, the chief financial officer owned 42,833 shares in the company, valued at $10,623,440.66. This trade represents a 3.02% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Jillian Forusz sold 755 shares of the firm's stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $246.25, for a total value of $185,918.75. Following the sale, the chief accounting officer owned 3,521 shares of the company's stock, valued at approximately $867,046.25. This trade represents a 17.66% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 77,091 shares of company stock worth $18,782,773 in the last 90 days. 0.20% of the stock is owned by corporate insiders.

About Adobe

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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