Price T Rowe Associates Inc. MD Cuts Holdings in Adobe Inc. $ADBE

Key Points

• Price T Rowe Associates Inc. MD has reduced its stake in Adobe Inc. by 39.1% after selling 1,291,439 shares, now holding a total of 2,013,255 shares valued at approximately $772 million.
• In contrast, several other hedge funds like Goldman Sachs Group Inc. and Vanguard Group Inc. have increased their stakes, reflecting a competitive interest among institutional investors in Adobe.
• Adobe's recent quarterly earnings exceeded expectations, reporting an EPS of $5.06 and a revenue of $5.87 billion, indicating a year-over-year growth of 10.6%.

Price T Rowe Associates Inc. MD trimmed its holdings in Adobe Inc. (NASDAQ:ADBE - Free Report) by 39.1% in the first quarter, according to its most recent disclosure with the SEC. The fund owned 2,013,255 shares of the software company's stock after selling 1,291,439 shares during the period. Price T Rowe Associates Inc. MD owned 0.47% of Adobe worth $772,145,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in ADBE. Siemens Fonds Invest GmbH grew its stake in shares of Adobe by 252.9% in the 4th quarter. Siemens Fonds Invest GmbH now owns 55,658 shares of the software company's stock valued at $25,000 after purchasing an additional 39,888 shares during the last quarter. Barnes Dennig Private Wealth Management LLC acquired a new stake in shares of Adobe during the first quarter worth $26,000. SWAN Capital LLC acquired a new stake in shares of Adobe during the fourth quarter worth $28,000. Copia Wealth Management purchased a new position in Adobe in the 4th quarter valued at $28,000. Finally, HHM Wealth Advisors LLC acquired a new position in Adobe in the 1st quarter valued at $30,000. Hedge funds and other institutional investors own 81.79% of the company's stock.

Adobe Price Performance

Shares of Adobe stock traded down $6.72 on Tuesday, hitting $356.49. The company's stock had a trading volume of 1,295,062 shares, compared to its average volume of 3,749,471. The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 0.54. The firm has a fifty day moving average price of $365.80 and a 200-day moving average price of $388.83. The company has a market capitalization of $151.22 billion, a P/E ratio of 22.81, a price-to-earnings-growth ratio of 1.72 and a beta of 1.51. Adobe Inc. has a 52-week low of $330.04 and a 52-week high of $587.75.

Adobe (NASDAQ:ADBE - Get Free Report) last released its earnings results on Thursday, June 12th. The software company reported $5.06 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.97 by $0.09. Adobe had a net margin of 30.39% and a return on equity of 53.68%. The company had revenue of $5.87 billion for the quarter, compared to analyst estimates of $5.80 billion. During the same period in the prior year, the firm earned $4.48 EPS. The firm's quarterly revenue was up 10.6% on a year-over-year basis. Adobe has set its Q3 2025 guidance at 5.150-5.200 EPS. FY 2025 guidance at 20.500-20.700 EPS. On average, equities research analysts expect that Adobe Inc. will post 16.65 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several research firms have recently commented on ADBE. JMP Securities restated a "market perform" rating on shares of Adobe in a research note on Monday, June 23rd. Oppenheimer cut their price target on shares of Adobe from $530.00 to $500.00 and set an "outperform" rating for the company in a report on Friday, June 13th. Robert W. Baird raised their price objective on shares of Adobe from $410.00 to $425.00 and gave the company a "neutral" rating in a research report on Monday, June 16th. Melius cut Adobe from a "hold" rating to a "sell" rating and set a $310.00 target price on the stock. in a research report on Monday, August 11th. Finally, Citigroup cut their target price on Adobe from $465.00 to $450.00 and set a "neutral" rating for the company in a research note on Monday, June 16th. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, eight have given a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, Adobe presently has a consensus rating of "Moderate Buy" and an average price target of $467.58.

About Adobe

Adobe Inc, together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform.