Novare Capital Management LLC Has $7.42 Million Position in Adobe Inc. $ADBE

Key Points

• Novare Capital Management cut its Adobe stake by 28.1% in the fourth quarter, leaving it with 21,202 shares valued at about $7.42 million.
• Adobe continues to draw heavy institutional interest, with 81.79% of shares held by institutions and hedge funds, even as some insiders have been selling stock recently.
• Wall Street remains cautious overall: analysts assign Adobe a consensus Hold rating with an average price target of $338.15, while the company also authorized a $25 billion share buyback and reported earnings and revenue that beat expectations.

Novare Capital Management LLC reduced its holdings in Adobe Inc. (NASDAQ:ADBE - Free Report) by 28.1% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 21,202 shares of the software company's stock after selling 8,284 shares during the period. Novare Capital Management LLC's holdings in Adobe were worth $7,420,000 as of its most recent SEC filing.

Several other large investors have also bought and sold shares of the business. Vanguard Group Inc. lifted its holdings in Adobe by 0.8% in the third 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 raised its holdings in Adobe by 1.7% in the third 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. Arrowstreet Capital Limited Partnership raised its holdings in Adobe by 53.3% in 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 purchasing an additional 1,952,994 shares during the period. Amundi raised its holdings in Adobe by 17.9% in the third quarter. Amundi now owns 4,888,283 shares of the software company's stock worth $1,711,583,000 after purchasing an additional 742,646 shares during the period. Finally, Invesco Ltd. raised its holdings in Adobe by 9.4% in the third quarter. Invesco Ltd. now owns 4,821,688 shares of the software company's stock worth $1,700,850,000 after purchasing an additional 414,526 shares during the period. 81.79% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on ADBE. Sanford C. Bernstein set a $447.00 target price on shares of Adobe and gave the stock an "outperform" rating in a report on Friday, March 13th. Royal Bank Of Canada cut their target price on shares of Adobe from $400.00 to $350.00 and set an "outperform" rating on the stock in a report on Friday, April 17th. Jefferies Financial Group cut their target price on shares of Adobe from $400.00 to $290.00 and set a "hold" rating on the stock in a report on Monday, February 23rd. William Blair lowered shares of Adobe from an "outperform" rating to a "market perform" rating in a report on Thursday, March 26th. Finally, TD Cowen cut their target price on shares of Adobe from $400.00 to $325.00 and set a "hold" rating on the stock in a report on Tuesday, March 10th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, sixteen have issued a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $338.15.

Insider Activity at Adobe

In related news, CAO Jillian Forusz sold 755 shares of the firm's stock in a transaction 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 completion of the transaction, 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Shantanu Narayen sold 75,000 shares of the firm's stock in a transaction on Tuesday, April 28th. The shares were 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 directly owned 359,538 shares of the company's stock, valued at approximately $87,561,884.52. This trade represents a 17.26% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 77,091 shares of company stock valued at $18,782,773. Corporate insiders own 0.20% of the company's stock.

Key Stories Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Social media and market commentary point to a sector rotation from semiconductors into software, with Adobe among the leaders, as traders buy into a rebound for established SaaS and creative-tools names. Adobe Stock (ADBE) Opinions on Sector Rotation to Software
• Positive Sentiment: Analysts and investors highlighted Adobe as potentially undervalued after months of pressure, citing strong profitability and AI features such as Firefly and Acrobat AI Assistant as reasons the company can keep growing despite AI-related fears. Is Generative AI Expanding Adobe's Digital Media Opportunity?
• Neutral Sentiment: Coverage around Adobe’s latest AI product push, including the new Acrobat productivity agent, reinforces the company’s strategy to embed generative AI across its workflow tools, which could support longer-term revenue growth. Adobe (ADBE) Expands Its Agentic AI Push With New Acrobat Productivity Agent
• Negative Sentiment: Some recent articles and reviews emphasize competitive pressure and user dissatisfaction with Adobe’s products, while insider selling and heavy hedge fund trimming may keep sentiment cautious even after the rebound. Adobe was overkill for the editing I actually do, and that’s what finally made me leave

Adobe Stock Up 4.5%

Shares of ADBE stock opened at $247.60 on Friday. The firm has a fifty day moving average of $247.93 and a 200-day moving average of $290.83. The company has a quick ratio of 0.91, a current 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 company has a market capitalization of $100.08 billion, a price-to-earnings ratio of 14.42, a P/E/G ratio of 0.92 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 (EPS) for the quarter, topping the consensus estimate of $5.87 by $0.19. The company had revenue of $6.40 billion during the quarter, compared to the consensus estimate of $6.28 billion. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The firm's revenue was up 12.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $5.08 earnings per share. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. As a group, equities research analysts predict that Adobe Inc. will post 19.14 earnings per share for the current fiscal year.

Adobe declared that its board has authorized a share repurchase plan on Tuesday, April 21st that allows the company to repurchase $25.00 billion in shares. This repurchase authorization allows the software company to reacquire up to 24.9% of its shares through open market purchases. Shares repurchase plans are usually 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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