ProShare Advisors LLC Buys 194,296 Shares of Adobe Inc. $ADBE

Key Points

• ProShare Advisors LLC boosted its Adobe stake by 34.9% in the fourth quarter, buying 194,296 additional shares and bringing its total holding to 750,440 shares worth about $262.6 million.
• Adobe reported strong quarterly results, with EPS of $6.06 and revenue of $6.40 billion, both ahead of analyst expectations and up 12% year over year.
• The company also authorized a massive $25 billion share buyback, while Wall Street sentiment remains mixed with a consensus rating of Hold and an average price target of $338.15.

ProShare Advisors LLC increased its stake in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 34.9% during the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 750,440 shares of the software company's stock after acquiring an additional 194,296 shares during the quarter. ProShare Advisors LLC owned approximately 0.18% of Adobe worth $262,646,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also bought and sold shares of the stock. Federated Hermes Inc. increased its stake in Adobe by 185.1% during the 3rd quarter. Federated Hermes Inc. now owns 898,408 shares of the software company's stock valued at $316,913,000 after purchasing an additional 583,275 shares in the last quarter. Willis Investment Counsel increased its stake in Adobe by 138.9% during the 4th quarter. Willis Investment Counsel now owns 40,715 shares of the software company's stock valued at $14,250,000 after purchasing an additional 23,671 shares in the last quarter. Jones Financial Companies Lllp increased its stake in Adobe by 43.8% during the 3rd quarter. Jones Financial Companies Lllp now owns 106,598 shares of the software company's stock valued at $38,309,000 after purchasing an additional 32,448 shares in the last quarter. Victory Capital Management Inc. increased its stake in Adobe by 112.6% during the 3rd quarter. Victory Capital Management Inc. now owns 1,341,410 shares of the software company's stock valued at $469,467,000 after purchasing an additional 710,357 shares in the last quarter. Finally, Rakuten Investment Management Inc. bought a new stake in Adobe during the 3rd quarter valued at $24,904,000. 81.79% of the stock is owned by institutional investors.

Adobe Price Performance

ADBE opened at $255.64 on Tuesday. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.91 and a quick ratio of 0.91. The company has a market capitalization of $103.33 billion, a price-to-earnings ratio of 14.89, a P/E/G ratio of 0.97 and a beta of 1.42. The firm's fifty day moving average price is $247.40 and its two-hundred day moving average price is $289.63. Adobe Inc. has a 1 year low of $224.13 and a 1 year high of $422.95.

Adobe (NASDAQ:ADBE - Get Free Report) last posted its quarterly earnings data 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. The firm had revenue of $6.40 billion for 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 business's revenue for the quarter was up 12.0% compared to the same quarter last year. During the same period in the previous year, the firm earned $5.08 EPS. 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, analysts anticipate that Adobe Inc. will post 19.14 earnings per share for the current fiscal year.

Adobe declared that its Board of Directors has authorized a share buyback program on Tuesday, April 21st that authorizes the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization authorizes the software company to purchase up to 24.9% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of analysts have commented on ADBE shares. TD Cowen decreased their price target on shares of Adobe from $400.00 to $325.00 and set a "hold" rating for the company in a research note on Tuesday, March 10th. William Blair lowered shares of Adobe from an "outperform" rating to a "market perform" rating in a research note on Thursday, March 26th. Citigroup restated a "neutral" rating on shares of Adobe in a research note on Friday, April 10th. Stifel Nicolaus decreased their price target on shares of Adobe from $450.00 to $400.00 and set a "buy" rating for the company in a research note on Friday, March 13th. Finally, Argus restated a "hold" rating on shares of Adobe in a research note on Monday, March 16th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, sixteen have assigned a Hold rating and five have assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $338.15.

Insiders Place Their Bets

In other Adobe news, CFO Daniel Durn sold 1,336 shares of Adobe stock in a transaction on Monday, April 20th. The shares were sold at an average price of $248.02, for a total transaction of $331,354.72. Following the transaction, the chief financial officer directly owned 42,833 shares of the company's stock, valued at $10,623,440.66. The trade was a 3.02% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Jillian Forusz sold 755 shares of Adobe stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $246.25, for a total transaction of $185,918.75. Following the transaction, the chief accounting officer directly owned 3,521 shares in the company, valued at $867,046.25. This represents a 17.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 77,091 shares of company stock valued at $18,782,773 in the last three months. 0.20% of the stock is currently owned by insiders.

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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