Professional Advisory Services Inc. Cuts Position in Adobe Inc. $ADBE

Key Points

• Professional Advisory Services Inc. reduced its Adobe stake by 6.4% in the third quarter, selling 4,191 shares and retaining 61,696 shares valued at approximately $14.8 million. Adobe represents about 1.7% of the fund’s portfolio.
• Adobe reported quarterly revenue of $6.76 billion and EPS of $6.13, exceeding analyst expectations, while revenue increased 12.9% year over year. However, investors remain concerned about AI competition, growth momentum and the upcoming CEO transition.
• Insider selling has been notable: insiders sold 125,416 shares worth approximately $31.5 million over the past 90 days, including substantial sales by the CEO. Analysts maintain an overall “Hold” rating, with an average price target of $282.68 versus the reported share price of $241.05.

Professional Advisory Services Inc. lowered its stake in Adobe Inc. (NASDAQ:ADBE - Free Report) by 6.4% during the third quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 61,696 shares of the software company's stock after selling 4,191 shares during the quarter. Adobe makes up approximately 1.7% of Professional Advisory Services Inc.'s investment portfolio, making the stock its 26th largest position. Professional Advisory Services Inc.'s holdings in Adobe were worth $14,803,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in shares of Adobe during the 2nd quarter worth approximately $8,437,821,000. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Adobe by 10.9% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 6,228,503 shares of the software company's stock worth $2,179,914,000 after buying an additional 611,358 shares during the period. Invesco Ltd. grew its stake in Adobe by 6.2% in the 4th quarter. Invesco Ltd. now owns 5,119,025 shares of the software company's stock valued at $1,791,607,000 after buying an additional 297,337 shares during the last quarter. Deutsche Bank AG lifted its position in Adobe by 3.9% during the fourth quarter. Deutsche Bank AG now owns 3,997,588 shares of the software company's stock worth $1,399,116,000 after acquiring an additional 148,623 shares during the last quarter. Finally, Amundi boosted its holdings in shares of Adobe by 1.1% during the first quarter. Amundi now owns 4,724,102 shares of the software company's stock worth $1,148,335,000 after acquiring an additional 53,424 shares during the period. 81.79% of the stock is owned by institutional investors.

Key Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Technical recovery interest: Adobe’s extended selloff and position below several key moving averages may be attracting investors looking for a potential rebound. What's Going On With Adobe Stock Thursday?
• Positive Sentiment: NHL marketing partnership: Adobe became the National Hockey League’s official Creative, Marketing and AI Partner, giving its customer-experience products and Firefly generative-AI tools exposure to the league’s global audience. The deal could support brand visibility and enterprise adoption, although its near-term financial impact is unclear. Adobe Joins The NHL
• Neutral Sentiment: Solid fundamentals versus AI concerns: Analysts highlighted Adobe’s profitability, cash generation and continued double-digit revenue growth, but investors remain focused on whether growth can hold up as AI competition intensifies. Are Strong Fundamentals Enough to Overcome AI Fears?
• Negative Sentiment: Immigration-program suspension: The U.S. Labor Department suspended Adobe from the Permanent Labor Certification program, which supports green-card applications for skilled foreign workers, citing alleged abuse. The action could create hiring and compliance uncertainty, though the immediate financial effect is not yet clear. U.S. Suspends Adobe From Green-Card Labor Program
• Negative Sentiment: Ongoing investor concerns: Despite recent earnings and revenue beats, the market continues to question Adobe’s underlying growth momentum, AI competitive position and upcoming CEO transition. Reported insider activity has also been dominated by sales rather than purchases. Adobe Shares Slide as Investors Digest Softer Growth Concerns

Insider Activity at Adobe

In other news, CAO Jillian Forusz sold 416 shares of Adobe stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $264.33, for a total transaction of $109,961.28. Following the transaction, the chief accounting officer owned 3,824 shares in the company, valued at approximately $1,010,797.92. The trade was a 9.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Shantanu Narayen sold 74,500 shares of the stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $251.56, for a total value of $18,741,220.00. Following the completion of the sale, the chief executive officer directly owned 289,224 shares of the company's stock, valued at approximately $72,757,189.44. The trade was a 20.48% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 125,416 shares of company stock valued at $31,454,466. Corporate insiders own 0.20% of the company's stock.

Adobe Price Performance

Shares of NASDAQ ADBE traded up $8.28 during midday trading on Thursday, reaching $241.05. 5,797,922 shares of the company were exchanged, compared to its average volume of 5,753,341. Adobe Inc. has a one year low of $190.12 and a one year high of $363.70. The stock has a market cap of $93.82 billion, a P/E ratio of 13.45, a PEG ratio of 0.83 and a beta of 1.42. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 0.41. The stock's 50-day moving average price is $258.36 and its 200-day moving average price is $242.88.

Adobe (NASDAQ:ADBE - Get Free Report) last issued its earnings results on Thursday, September 10th. The software company reported $6.13 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $6.08 by $0.05. The business had revenue of $6.76 billion during the quarter, compared to analysts' expectations of $6.69 billion. Adobe had a return on equity of 65.65% and a net margin of 28.05%.The business's revenue for the quarter was up 12.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $5.31 EPS. Adobe has set its Q4 2026 guidance at 6.300-6.350 EPS and its FY 2026 guidance at 24.450-24.500 EPS. On average, sell-side analysts anticipate that Adobe Inc. will post 20.01 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on ADBE shares. Oppenheimer reissued a "market perform" rating on shares of Adobe in a report on Tuesday, September 8th. Morgan Stanley reissued an "underweight" rating on shares of Adobe in a report on Friday, September 11th. Weiss Ratings raised Adobe from a "sell (d)" rating to a "sell (d+)" rating in a research note on Tuesday, September 1st. Citizens Jmp reiterated a "market perform" rating on shares of Adobe in a research note on Friday, September 11th. Finally, Sanford C. Bernstein dropped their target price on shares of Adobe from $447.00 to $379.00 and set an "outperform" rating for the company in a research report on Friday, June 12th. Seven equities research 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's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $282.68.

Adobe Profile

Adobe Inc NASDAQ: ADBE is a global software company that develops tools for creating, managing, delivering and analyzing digital content. Its products serve creative professionals, marketers, enterprises, students and individual consumers across a broad range of industries and geographies.

Adobe's Creative Cloud portfolio includes applications such as Photoshop, Illustrator, Premiere Pro, InDesign and Adobe Express for graphic design, photography, video, illustration and digital content creation.

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