Northwestern Mutual Wealth Management Co. Sells 13,701 Shares of Adobe Inc. $ADBE

Key Points

• Northwestern Mutual Wealth Management Co. cut its Adobe stake by 21.4%, selling 13,701 shares and retaining 50,278 shares valued at approximately $10.3 million. Institutional investors still own 81.79% of Adobe’s outstanding stock.
• Adobe exceeded quarterly expectations with $5.96 in EPS and $6.62 billion in revenue, representing 12.7% year-over-year revenue growth. However, concerns over a reduced revenue outlook and slowing legacy Creative growth remain ahead of fiscal third-quarter results.
• Analyst sentiment is broadly cautious, with Adobe holding an average “Hold” rating and a $278.72 consensus price target after several firms lowered targets. Meanwhile, Adobe is pursuing AI growth through the acquisition of Rilo and expanded access to its tools via Slack, while facing increasing competition from Google, Canva and Figma.

Northwestern Mutual Wealth Management Co. decreased its stake in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 21.4% during the second quarter, according to its most recent filing with the SEC. The institutional investor owned 50,278 shares of the software company's stock after selling 13,701 shares during the period. Northwestern Mutual Wealth Management Co.'s holdings in Adobe were worth $10,308,000 as of its most recent SEC filing.

Other hedge funds have also recently made changes to their positions in the company. Western Pacific Wealth Management LP bought a new position in shares of Adobe in the fourth quarter worth approximately $26,000. Measured Wealth Private Client Group LLC purchased a new stake in Adobe during the third quarter valued at about $26,000. TrustBank bought a new position in shares of Adobe during the fourth quarter valued at about $28,000. Mowery & Schoenfeld Wealth Management LLC bought a new position in Adobe during the 2nd quarter valued at approximately $28,000. Finally, Lloyd Advisory Services LLC. bought a new position in shares of Adobe during the fourth quarter valued at approximately $31,000. 81.79% of the stock is currently owned by hedge funds and other institutional investors.

Adobe Price Performance

Shares of NASDAQ:ADBE opened at $279.79 on Thursday. The firm has a market cap of $111.22 billion, a price-to-earnings ratio of 16.01, a P/E/G ratio of 1.00 and a beta of 1.42. The firm has a fifty day moving average price of $246.07 and a 200 day moving average price of $245.51. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.75 and a current ratio of 0.75. Adobe Inc. has a fifty-two week low of $190.12 and a fifty-two week high of $370.86.

Adobe (NASDAQ:ADBE - Get Free Report) last released its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 earnings per share (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 business had revenue of $6.62 billion for the quarter, compared to the consensus estimate of $6.45 billion. During the same quarter in the previous year, the company posted $5.06 EPS. The company's revenue was up 12.7% compared to the same quarter last year. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. As a group, sell-side analysts expect that Adobe Inc. will post 19.81 earnings per share for the current fiscal year.

Analysts Set New Price Targets

ADBE has been the subject of a number of research analyst reports. Stifel Nicolaus restated a "hold" rating and issued a $200.00 target price (down from $350.00) on shares of Adobe in a research note on Friday, June 12th. The Goldman Sachs Group decreased their price objective on shares of Adobe from $220.00 to $190.00 and set a "sell" rating for the company in a report on Friday, June 12th. KeyCorp lowered their target price on shares of Adobe from $235.00 to $195.00 and set an "underweight" rating on the stock in a research note on Friday, June 12th. Evercore set a $225.00 price target on Adobe and gave the company an "in-line" rating in a report on Friday, June 12th. Finally, UBS Group downgraded shares of Adobe from a "buy" rating to an "equal weight" rating in a report on Tuesday, July 21st. Seven analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat, Adobe presently has an average rating of "Hold" and an average target price of $278.72.

Adobe News Summary

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe acquired India-based marketing-intelligence and AI-automation startup Rilo through a deal involving technology licensing and the addition of its team. The acquisition should strengthen Adobe’s “agentic” AI capabilities and represents its second Indian acquisition. Adobe acquires Indian market intelligence startup Rilo
• Positive Sentiment: Adobe is bringing Photoshop, Firefly, Acrobat, Express, Premiere, InDesign and more than 70 creative tools directly into Slack through an Adobe for Slack MCP app. Broader distribution through Slackbot could increase product usage, support AI adoption and create additional conversion opportunities. Adobe is making its tools available in Slack
• Positive Sentiment: Royal Bank of Canada raised its Adobe price target to $315 from $285 and maintained an “outperform” rating, citing potential upside from AI growth. Citi also raised its target to $301 ahead of Adobe’s fiscal third-quarter results, expecting a possible beat and raised outlook. Citi boosts Adobe price target before Q3 results
• Neutral Sentiment: Adobe’s $4 billion Saudi Arabia initiative will provide free access to AI tools for approximately 27 million people. The program could accelerate long-term adoption, but the headline figure represents the potential value of subscriptions rather than an immediate payment or revenue contribution. Saudi Arabia Adobe AI access initiative
• Negative Sentiment: Investors remain concerned that Google’s new AI image-creation and editing tool could pressure Adobe’s creative-software franchise. Canva, Figma and other AI-native competitors are also challenging Adobe’s moat, while analysts question how quickly Firefly and other AI products will convert free users into paying subscribers. Google AI competition could pressure Adobe
• Negative Sentiment: Although Adobe recently exceeded earnings and revenue expectations, its reduced annual revenue outlook has kept attention on slowing legacy Creative growth and the sustainability of subscription expansion. The next major catalyst is fiscal third-quarter earnings, scheduled for September 10. Adobe earnings outlook and analyst concerns

Insider Transactions at Adobe

In other Adobe news, CAO Jillian Forusz sold 416 shares of the company's stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $264.33, for a total value of $109,961.28. Following the transaction, the chief accounting officer directly owned 3,824 shares in the company, valued at $1,010,797.92. This represents a 9.81% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director David A. Ricks bought 10,000 shares of the stock in a transaction on Thursday, June 25th. The stock was purchased at an average price of $194.51 per share, with a total value of $1,945,100.00. Following the completion of the acquisition, the director directly owned 17,655 shares in the company, valued at approximately $3,434,074.05. This trade represents a 130.63% increase in their position. The disclosure for this purchase is available in the SEC filing. 0.20% of the stock is currently owned by 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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