Sather Financial Group Inc Has $43.72 Million Position in Adobe Inc. $ADBE

Key Points

• Sather Financial Group increased its Adobe stake by 17.6% in the first quarter, bringing its holdings to 179,839 shares worth about $43.7 million. Adobe is now the fund’s 15th largest position and makes up 2.7% of its portfolio.
• Insider selling at Adobe picked up recently, with CEO Shantanu Narayen and CAO Jillian Forusz both selling shares. Over the last 90 days, insiders sold 77,091 shares worth about $18.8 million.
• Adobe beat quarterly earnings and revenue expectations, but analyst sentiment remains cautious: the stock has a Hold consensus rating, and recent reports from Bank of America and others highlighted concerns about AI competition and slower growth.

Sather Financial Group Inc raised its holdings in Adobe Inc. (NASDAQ:ADBE - Free Report) by 17.6% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 179,839 shares of the software company's stock after acquiring an additional 26,972 shares during the quarter. Adobe comprises 2.7% of Sather Financial Group Inc's portfolio, making the stock its 15th largest position. Sather Financial Group Inc's holdings in Adobe were worth $43,715,000 as of its most recent SEC filing.

A number of other institutional investors have also recently bought and sold shares of ADBE. Measured Wealth Private Client Group LLC acquired a new stake in shares of Adobe during the third quarter worth $26,000. Western Pacific Wealth Management LP acquired a new position in Adobe in the fourth quarter valued at about $26,000. Beacon Financial Strategies CORP acquired a new position in Adobe in the fourth quarter valued at about $28,000. TrustBank bought a new position in Adobe during the fourth quarter worth about $28,000. Finally, KERR FINANCIAL PLANNING Corp acquired a new position in shares of Adobe during the 3rd quarter worth about $27,000. Institutional investors and hedge funds own 81.79% of the company's stock.

Insider Buying and Selling at Adobe

In other news, CEO Shantanu Narayen sold 75,000 shares of the 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 completion of the transaction, the chief executive officer directly owned 359,538 shares in the company, valued at $87,561,884.52. This represents a 17.26% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CAO Jillian Forusz sold 755 shares of the firm's stock in a transaction dated 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 $867,046.25. The trade was a 17.66% decrease in their position. The disclosure for this sale is available in the SEC filing. 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.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the company. William Blair cut Adobe from an "outperform" rating to a "market perform" rating in a research note on Thursday, March 26th. Weiss Ratings reissued a "sell (d+)" rating on shares of Adobe in a research note on Wednesday, June 3rd. Morgan Stanley decreased their price objective on shares of Adobe from $425.00 to $365.00 and set an "equal weight" rating for the company in a report on Friday, March 13th. DA Davidson lowered their target price on shares of Adobe from $300.00 to $250.00 and set a "buy" rating for the company in a research note on Friday, June 12th. Finally, Summit Redstone set a $350.00 target price on shares of Adobe in a report on Friday, April 17th. Six equities research analysts have rated the stock with a Buy rating, twenty-two have issued a Hold rating and five have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $275.00.

Adobe Stock Up 4.9%

Shares of NASDAQ ADBE traded up $10.69 during midday trading on Tuesday, reaching $228.76. The company's stock had a trading volume of 2,921,698 shares, compared to its average volume of 6,068,477. The stock has a 50 day simple moving average of $232.91 and a 200-day simple moving average of $264.53. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 0.42. The stock has a market capitalization of $90.93 billion, a price-to-earnings ratio of 13.10, a PEG ratio of 0.77 and a beta of 1.43. Adobe Inc. has a fifty-two week low of $190.12 and a fifty-two week high of $386.60.

Adobe (NASDAQ:ADBE - Get Free Report) last announced its earnings results on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, topping the consensus estimate of $5.82 by $0.14. The business had revenue of $6.62 billion during the quarter, compared to analysts' expectations of $6.45 billion. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The firm's revenue was up 12.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $5.06 earnings per share. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. Equities research analysts predict that Adobe Inc. will post 19.8 earnings per share for the current year.

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

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Negative Sentiment: Bank of America downgraded Adobe to Underperform and cut its price target to $190, citing concerns that AI-powered competitors could slow Adobe’s growth. Bank of America Downgrades Adobe (ADBE) Stock with $190 Price Target Amid AI Disruption
• Negative Sentiment: BofA also reaffirmed the Underperform view, reinforcing investor worries that Adobe may be vulnerable to AI-driven competition and slower monetization of its own AI features. Adobe Stock (ADBE) Gets a Sell Rating From BofA. Here’s Why
• Negative Sentiment: News that a maximum-severity Adobe ColdFusion flaw is now being actively exploited adds a cybersecurity overhang, which could increase reputational and remediation concerns. Max severity Adobe ColdFusion flaw now exploited in attacks
• Neutral Sentiment: Zacks highlighted Adobe as a strong growth stock, which offers a mildly supportive counterpoint, but the item appears more style-score driven than a new fundamental catalyst. Here's Why Adobe Systems (ADBE) is a Strong Growth Stock

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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