Orange Investment Advisors Inc. Raises Position in Adobe Inc. $ADBE

Key Points

• Orange Investment Advisors increased its Adobe stake by 21.6% in the fourth quarter, buying 5,254 more shares and bringing its total to 29,541 shares worth about $10.3 million.
• Adobe announced a $25 billion share buyback, which would allow it to repurchase up to 24.9% of its stock and may signal management believes the shares are undervalued.
• The company recently beat quarterly expectations with strong EPS and revenue growth, but analysts remain cautious overall, with a consensus rating of Hold and an average price target of $338.15.

Orange Investment Advisors Inc. lifted its stake in Adobe Inc. (NASDAQ:ADBE - Free Report) by 21.6% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 29,541 shares of the software company's stock after purchasing an additional 5,254 shares during the period. Adobe accounts for approximately 1.1% of Orange Investment Advisors Inc.'s holdings, making the stock its 22nd largest position. Orange Investment Advisors Inc.'s holdings in Adobe were worth $10,339,000 as of its most recent SEC filing.

A number of other institutional investors also recently bought and sold shares of ADBE. Vanguard Group Inc. raised its stake in shares of Adobe by 0.8% in 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 during the period. State Street Corp increased its holdings in shares of 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 last quarter. Arrowstreet Capital Limited Partnership lifted its position in shares of 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 buying an additional 1,952,994 shares in the last quarter. Amundi boosted its stake in Adobe by 17.9% during the third quarter. Amundi now owns 4,888,283 shares of the software company's stock valued at $1,711,583,000 after buying an additional 742,646 shares during the last quarter. Finally, Invesco Ltd. boosted its stake in Adobe by 9.4% during the third quarter. Invesco Ltd. now owns 4,821,688 shares of the software company's stock valued at $1,700,850,000 after buying an additional 414,526 shares during the last quarter. 81.79% of the stock is owned by institutional investors.

Adobe News Summary

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe is expanding its Firefly-powered creative tools into Google Gemini, which could broaden usage of its software and reinforce its position in digital creativity workflows. Adobe Is Bringing Its Firefly-Powered Creative AI Tools Directly Into Google Gemini
• Positive Sentiment: Commentary from 24/7 Wall St. highlighted Adobe as an oversold turnaround idea, arguing the stock’s weakness may be overdone relative to its fundamentals and AI-related revenue prospects. Adobe Price Prediction. A $417 Stock Now at $253 With AI Revenue Tripling. Here Is Our 12 Month Target
• Positive Sentiment: Michael Burry reportedly maintained a position in Adobe, which may signal some contrarian investor confidence in the beaten-down stock. Adobe Inc. (ADBE): Michael Burry Maintains Position

Wall Street Analysts Forecast Growth

ADBE has been the topic of a number of research reports. BTIG Research began coverage on Adobe in a research note on Monday, April 13th. They issued a "neutral" rating on the stock. BMO Capital Markets cut their target price on shares of Adobe from $375.00 to $285.00 and set a "market perform" rating for the company in a report on Friday, March 13th. KeyCorp reduced their price target on shares of Adobe from $310.00 to $235.00 and set an "underweight" rating on the stock in a research report on Friday, March 13th. Stifel Nicolaus decreased their price target on shares of Adobe from $450.00 to $400.00 and set a "buy" rating on the stock in a research note on Friday, March 13th. Finally, DA Davidson set a $300.00 price objective on shares of Adobe in a research report on Friday, March 13th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, seventeen have issued a Hold rating and five have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $338.15.

Adobe Stock Performance

NASDAQ ADBE opened at $244.10 on Friday. The business's 50 day moving average price is $245.63 and its 200-day moving average price is $287.76. Adobe Inc. has a fifty-two week low of $224.13 and a fifty-two week high of $421.48. The company has a market cap of $98.67 billion, a P/E ratio of 14.22, a P/E/G ratio of 0.99 and a beta of 1.42. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.91 and a current ratio of 0.91.

Adobe (NASDAQ:ADBE - Get Free Report) last issued its quarterly earnings results 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 company had revenue of $6.40 billion during the quarter, compared to the consensus estimate of $6.28 billion. During the same period last year, the company earned $5.08 earnings per share. Adobe's 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. Sell-side analysts predict that Adobe Inc. will post 19.14 earnings per share for the current year.

Adobe declared that its board has initiated a share buyback plan on Tuesday, April 21st that allows the company to buyback $25.00 billion in shares. This buyback authorization allows the software company to buy up to 24.9% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's leadership believes its shares are undervalued.

Insider Transactions at Adobe

In related news, CFO Daniel Durn sold 1,336 shares of Adobe stock in a transaction dated Monday, April 20th. The shares were sold at an average price of $248.02, for a total transaction of $331,354.72. Following the completion of the transaction, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Shantanu Narayen sold 75,000 shares of the company's stock in a transaction dated 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 transaction, the chief executive officer owned 359,538 shares in the company, valued at $87,561,884.52. The trade was a 17.26% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 77,091 shares of company stock worth $18,782,773. 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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