Morningstar Investment Management LLC Lowers Position in Adobe Inc. $ADBE

Key Points

• Morningstar Investment Management cut its Adobe stake by 24.1% in the fourth quarter, selling 6,670 shares and leaving it with 20,968 shares valued at about $7.34 million.
• Several analysts recently adjusted their views on Adobe, with BMO Capital Markets lowering its price target to $285 and Weiss Ratings downgrading the stock to sell. Overall, MarketBeat data still shows a consensus rating of Hold with an average target price of $338.15.
• Adobe remains in focus for its strong fundamentals and shareholder returns: it beat quarterly earnings and revenue estimates, raised full-year guidance, and approved a $25 billion share buyback program that could repurchase up to 24.9% of its shares.

Morningstar Investment Management LLC lessened its position in Adobe Inc. (NASDAQ:ADBE - Free Report) by 24.1% in the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 20,968 shares of the software company's stock after selling 6,670 shares during the quarter. Morningstar Investment Management LLC's holdings in Adobe were worth $7,339,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds also recently made changes to their positions in ADBE. Western Pacific Wealth Management LP purchased a new position in shares of Adobe in the 4th quarter valued at approximately $26,000. Measured Wealth Private Client Group LLC purchased a new position in shares of Adobe in the 3rd quarter valued at approximately $26,000. KERR FINANCIAL PLANNING Corp purchased a new position in shares of Adobe in the 3rd quarter valued at approximately $27,000. Caitlin John LLC purchased a new position in shares of Adobe in the 3rd quarter valued at approximately $28,000. Finally, Beacon Financial Strategies CORP purchased a new position in shares of Adobe in the 4th quarter valued at approximately $28,000. Hedge funds and other institutional investors own 81.79% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the company. DA Davidson set a $300.00 target price on Adobe in a research note on Friday, March 13th. BMO Capital Markets reduced their price objective on Adobe from $375.00 to $285.00 and set a "market perform" rating for the company in a research report on Friday, March 13th. Summit Redstone set a $350.00 price objective on Adobe in a research report on Friday, April 17th. HSBC set a $302.00 price objective on Adobe in a research report on Friday, February 13th. Finally, Weiss Ratings lowered Adobe from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, March 6th. One analyst has rated the stock with a Strong Buy rating, nine have issued 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, Adobe has an average rating of "Hold" and an average target price of $338.15.

Key Stories Impacting Adobe

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

Insiders Place Their Bets

In other Adobe news, CAO Jillian Forusz sold 755 shares of Adobe stock in a transaction on 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 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Daniel Durn sold 1,336 shares of Adobe stock in a transaction on Monday, April 20th. The stock was sold at an average price of $248.02, for a total value of $331,354.72. Following the completion of the sale, the chief financial officer directly owned 42,833 shares of the company's stock, valued at approximately $10,623,440.66. The trade was a 3.02% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 77,091 shares of company stock valued at $18,782,773. Corporate insiders own 0.20% of the company's stock.

Adobe Price Performance

Adobe stock opened at $244.76 on Monday. The firm has a market cap of $98.93 billion, a price-to-earnings ratio of 14.26, a PEG ratio of 0.95 and a beta of 1.42. The stock has a fifty day simple moving average of $245.05 and a two-hundred day simple moving average of $287.11. 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.

Adobe (NASDAQ:ADBE - Get Free Report) last posted its earnings results on Thursday, March 12th. The software company reported $6.06 EPS for the quarter, topping analysts' consensus estimates of $5.87 by $0.19. The business had revenue of $6.40 billion during the quarter, compared to analyst estimates of $6.28 billion. Adobe had a return on equity of 64.48% and a net margin of 29.48%.The company's quarterly revenue was up 12.0% compared to the same quarter last year. During the same quarter last year, the company earned $5.08 EPS. 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 EPS for the current fiscal year.

Adobe announced that its board has approved a share 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 buy up to 24.9% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's management believes its shares are undervalued.

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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