S&CO Inc. Purchases New Position in Adobe Inc. $ADBE

Key Points

• S&CO Inc. acquired 3,887 Adobe shares worth approximately $796,000 in the second quarter, while institutional investors collectively own 81.79% of ADBE.
• Adobe’s latest quarterly results exceeded expectations, with earnings of $5.96 per share and revenue of $6.62 billion, up 12.7% year over year. The company also authorized a $25 billion share-repurchase program.
• Despite reported momentum in Adobe’s AI business and a recent stock rebound, analysts remain cautious: the consensus rating is “Hold”, with 21 holds, five sells and an average price target of $269.81.

S&CO Inc. purchased a new stake in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The firm purchased 3,887 shares of the software company's stock, valued at approximately $796,000.

A number of other large investors have also added to or reduced their stakes in ADBE. Western Pacific Wealth Management LP purchased a new stake in shares of Adobe during the 4th quarter worth approximately $26,000. Measured Wealth Private Client Group LLC purchased a new position in shares of Adobe in the third quarter valued at $26,000. TrustBank purchased a new position in shares of Adobe in the fourth quarter valued at $28,000. Lloyd Advisory Services LLC. bought a new stake in Adobe in the fourth quarter worth $31,000. Finally, Sankala Group LLC bought a new stake in Adobe in the fourth quarter worth $31,000. Institutional investors own 81.79% of the company's stock.

Adobe Stock Down 2.4%

Shares of ADBE opened at $264.02 on Friday. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 0.42. The business has a fifty day moving average of $228.64 and a 200 day moving average of $246.04. The company has a market cap of $104.95 billion, a PE ratio of 15.10, a P/E/G ratio of 0.89 and a beta of 1.40. Adobe Inc. has a 52-week low of $190.12 and a 52-week high of $370.86.

Adobe (NASDAQ:ADBE - Get Free Report) last posted its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 earnings per share for the quarter, beating analysts' consensus estimates of $5.82 by $0.14. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The business had revenue of $6.62 billion for the quarter, compared to analysts' expectations of $6.45 billion. During the same quarter in the previous year, the business posted $5.06 earnings per share. The business's revenue was up 12.7% compared to the same quarter last year. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. On average, sell-side analysts expect that Adobe Inc. will post 19.81 EPS for the current year.

Adobe announced that its Board of Directors has authorized a stock repurchase program on Tuesday, April 21st that allows the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization allows the software company to repurchase up to 24.9% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's board believes its stock is undervalued.

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe’s AI business is showing stronger traction: the company has reported a series of record earnings, while AI-related revenue has reportedly tripled. That performance is helping challenge the view that generative AI will permanently weaken Adobe’s creative-software franchise. Adobe Stock Eyes Rebound. Is This a Golden AI Opportunity?
• Positive Sentiment: ADBE has recovered substantially from its 2026 low as investors rotate back into beaten-down software stocks. The rebound suggests some investors believe Adobe’s earnings power and AI product expansion are being undervalued. Adobe stock is taking off: Could a rumored Workday buyout push it higher?
• Neutral Sentiment: A rumored potential acquisition of Workday is being discussed as a possible catalyst, but there is no confirmed transaction. Any deal could expand Adobe’s enterprise software reach, while also introducing execution, financing, and integration risks. Adobe stock is taking off: Could a rumored Workday buyout push it higher?
• Neutral Sentiment: One strategy article recommends selling options to collect income while setting a lower potential purchase price for Adobe. This may appeal to bullish, income-oriented investors, but it is not a fundamental catalyst and reflects continued caution about the stock’s near-term path. ADBE Stock: Collect 12% While Setting A 30%-Off Buy Price
• Negative Sentiment: Adobe remains one of the most heavily punished large-cap software stocks after losing roughly one-third from its peak. Investors continue to question whether generative AI could erode demand for its core creative products, even as recent results have been strong. That unresolved concern likely helps explain the pressure on ADBE today. Adobe Stock Eyes Rebound. Is This a Golden AI Opportunity?

Insider Transactions at Adobe

In other news, Director David A. Ricks purchased 10,000 shares of the company's stock in a transaction that occurred on Thursday, June 25th. The stock was purchased at an average cost of $194.51 per share, with a total value of $1,945,100.00. Following the purchase, the director owned 17,655 shares in the company, valued at approximately $3,434,074.05. This trade represents a 130.63% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Jillian Forusz sold 416 shares of the company's stock in a transaction dated 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 $1,010,797.92. The trade was a 9.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.20% of the stock is currently owned by insiders.

Analyst Ratings Changes

ADBE has been the subject of several research reports. Citizens Jmp reiterated a "market perform" rating on shares of Adobe in a research report on Friday, June 12th. Phillip Securities downgraded shares of Adobe from a "strong-buy" rating to a "hold" rating in a report on Monday, June 29th. Morgan Stanley cut shares of Adobe from an "equal weight" rating to an "underweight" rating and decreased their target price for the company from $365.00 to $240.00 in a research report on Tuesday, July 21st. Citigroup reaffirmed a "market perform" rating on shares of Adobe in a report on Friday, June 12th. Finally, TD Cowen dropped their price target on Adobe from $310.00 to $285.00 and set a "hold" rating for the company in a research report on Monday, June 8th. Seven equities research analysts have rated the stock with a Buy rating, twenty-one have assigned a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat.com, Adobe presently has an average rating of "Hold" and an average target price of $269.81.

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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