LSV Asset Management Increases Holdings in Adobe Inc. $ADBE

Key Points

• LSV Asset Management boosted its Adobe stake by 140.1% in the fourth quarter, ending with 913,240 shares worth about $319.6 million.
• Several large institutions also increased their positions, and 81.79% of Adobe’s stock is now held by hedge funds and other institutional investors.
• Adobe has seen mixed Wall Street sentiment, with multiple firms cutting price targets and maintaining hold/neutral ratings, even as the company reported strong quarterly results and authorized a $25 billion buyback.

LSV Asset Management raised its holdings in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 140.1% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 913,240 shares of the software company's stock after buying an additional 532,955 shares during the quarter. LSV Asset Management owned about 0.22% of Adobe worth $319,625,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the business. Vanguard Group Inc. grew its position in Adobe by 0.8% during the third quarter. Vanguard Group Inc. now owns 41,369,395 shares of the software company's stock worth $14,593,054,000 after buying an additional 344,816 shares in the last quarter. State Street Corp grew its position in Adobe by 1.7% during the third quarter. State Street Corp now owns 20,632,009 shares of the software company's stock worth $7,277,941,000 after buying an additional 352,448 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its position in Adobe by 53.3% during the third quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company's stock worth $1,981,448,000 after buying an additional 1,952,994 shares in the last quarter. Amundi grew its position in Adobe by 17.9% during the third quarter. Amundi now owns 4,888,283 shares of the software company's stock worth $1,711,583,000 after buying an additional 742,646 shares in the last quarter. Finally, Invesco Ltd. grew its position in Adobe by 9.4% during the third quarter. Invesco Ltd. now owns 4,821,688 shares of the software company's stock worth $1,700,850,000 after buying an additional 414,526 shares in the last quarter. 81.79% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

ADBE has been the subject of several recent analyst reports. TD Cowen reduced their target price on Adobe from $400.00 to $325.00 and set a "hold" rating for the company in a research report on Tuesday, March 10th. Argus restated a "hold" rating on shares of Adobe in a research report on Monday, March 16th. Citigroup restated a "neutral" rating on shares of Adobe in a research report on Friday, April 10th. Dbs Bank cut Adobe from a "moderate buy" rating to a "hold" rating in a research report on Tuesday. Finally, UBS Group reduced their target price on Adobe from $290.00 to $260.00 and set a "neutral" rating for the company in a research report on Friday, April 17th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, seventeen have assigned a Hold rating and five have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $338.15.

Insider Transactions at Adobe

In other news, CAO Jillian Forusz sold 755 shares of the company's stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $246.25, for a total value of $185,918.75. Following the completion of the transaction, the chief accounting officer directly owned 3,521 shares in the company, valued at approximately $867,046.25. This represents a 17.66% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Shantanu Narayen sold 75,000 shares of the company's stock in a transaction dated Tuesday, April 28th. The stock was sold at an average price of $243.54, for a total value 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. The trade was a 17.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 77,091 shares of company stock worth $18,782,773. 0.20% of the stock is currently owned by corporate insiders.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe is getting fresh buzz from its deeper integration with Google Gemini, including the ability for users to access Photoshop and Premiere Pro tools inside the AI assistant. That could expand Adobe’s reach and strengthen demand for its creative software. Article Title
• Positive Sentiment: Articles highlighting Adobe’s Digital Experience business say the company is well positioned to benefit from the digital content boom, with Experience Cloud and AI tools like Firefly and Sensei serving demand in ads and e-commerce. Article Title
• Positive Sentiment: Some market commentary argues Adobe looks inexpensive relative to its growth outlook after the broad software selloff, which may be attracting value-oriented investors. Article Title
• Neutral Sentiment: Additional coverage says Adobe is using agentic AI to defend its software moat, reinforcing the view that management is leaning into AI to support its competitive position. Article Title
• Negative Sentiment: One market recap noted Adobe stock fell in the latest session while the broader market advanced, underscoring continued volatility and investor caution around the name. Article Title
• Negative Sentiment: Governance-related headlines are also adding a small overhang, with renewed attention on trading activity tied to Adobe shares amid existing shareholder litigation. Article Title

Adobe Price Performance

ADBE opened at $244.76 on Friday. The stock has a 50-day moving average price of $245.05 and a 200-day moving average price of $287.46. Adobe Inc. has a 12-month low of $224.13 and a 12-month high of $421.48. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.47. The stock has a market capitalization of $98.93 billion, a P/E ratio of 14.26, a PEG ratio of 0.95 and a beta of 1.42.

Adobe (NASDAQ:ADBE - Get Free Report) last posted its quarterly earnings data on Thursday, March 12th. The software company reported $6.06 earnings per share (EPS) for the quarter, topping 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 analysts' expectations 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% 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. Equities 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 authorized 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 purchase up to 24.9% of its stock through open market purchases. Stock buyback plans are often a sign that the company's board of directors believes its stock is undervalued.

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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