Segall Bryant & Hamill LLC Purchases New Position in Adobe Inc. $ADBE

Key Points

• Segall Bryant & Hamill purchased 28,516 Adobe shares worth approximately $6.9 million, while institutional investors collectively own 81.79% of the company.
• Adobe exceeded quarterly expectations with $5.96 in EPS and $6.62 billion in revenue, up 12.7% year over year. The board also authorized a $25 billion share-repurchase program, covering up to 24.9% of outstanding shares.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and a $271.30 price target after several firms lowered their targets; investors remain divided over Adobe’s AI growth prospects and competitive risks.

Segall Bryant & Hamill LLC purchased a new stake in Adobe Inc. (NASDAQ:ADBE - Free Report) in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 28,516 shares of the software company's stock, valued at approximately $6,932,000.

Several other hedge funds have also bought and sold shares of the stock. Norges Bank purchased a new stake in Adobe during the fourth quarter worth $2,275,165,000. AQR Capital Management LLC raised its position in shares of Adobe by 55.2% in the third quarter. AQR Capital Management LLC now owns 2,587,399 shares of the software company's stock worth $912,705,000 after acquiring an additional 920,353 shares during the period. Amundi raised its position in shares of Adobe by 17.9% in the third quarter. Amundi now owns 4,888,283 shares of the software company's stock worth $1,711,583,000 after acquiring an additional 742,646 shares during the period. State of Michigan Retirement System boosted its stake in shares of Adobe by 566.1% during the 1st quarter. State of Michigan Retirement System now owns 820,823 shares of the software company's stock worth $199,526,000 after acquiring an additional 697,600 shares in the last quarter. Finally, AMF Tjanstepension AB acquired a new stake in shares of Adobe during the 1st quarter valued at about $167,494,000. Hedge funds and other institutional investors own 81.79% of the company's stock.

Adobe Stock Performance

Shares of Adobe stock opened at $250.41 on Monday. The firm has a market capitalization of $99.54 billion, a PE ratio of 14.33, a P/E/G ratio of 0.84 and a beta of 1.43. Adobe Inc. has a twelve month low of $190.12 and a twelve month high of $370.86. The firm's 50-day moving average price is $226.69 and its 200 day moving average price is $248.28. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 0.42.

Adobe (NASDAQ:ADBE - Get Free Report) last posted its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, topping the consensus estimate of $5.82 by $0.14. Adobe had a return on equity of 65.11% and a net margin of 28.69%.The company had revenue of $6.62 billion during the quarter, compared to analyst estimates of $6.45 billion. During the same period in the previous year, the business earned $5.06 EPS. Adobe's quarterly revenue was up 12.7% on a year-over-year basis. 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 predict that Adobe Inc. will post 19.81 EPS for the current fiscal year.

Adobe announced that its board has initiated a share repurchase plan on Tuesday, April 21st that authorizes the company to repurchase $25.00 billion in shares. This repurchase authorization authorizes the software company to purchase up to 24.9% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board of directors believes its shares are undervalued.

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe’s latest AI acquisition reportedly cleared Washington without significant regulatory obstacles, removing a potential deal risk and strengthening the company’s efforts to expand AI-powered creative tools. Adobe's latest AI acquisition just breezed through Washington
• Positive Sentiment: Recent commentary argues that AI is enhancing Adobe’s business rather than replacing it, potentially supporting new monetization opportunities, stronger customer engagement and a rebuilding of the company’s growth engine. Adobe’s latest quarterly results also showed roughly 13% year-over-year revenue growth and performance above analyst expectations. Adobe: How AI Is Enhancing Its Business, Not Killing It
• Positive Sentiment: Investors are also considering ways to participate in Adobe’s AI upside while hedging risks, suggesting that the stock remains a significant target for AI-related trading and positioning. As Adobe monetizes AI, here's a way to trade it and hedge against risks
• Neutral Sentiment: Analyst and investor views remain divided. Some see Adobe’s valuation and free-cash-flow generation as attractive, while others remain concerned about AI disruption, software-sector weakness and the need to restore faster growth. Adobe Stock Trades Below The Market on Earnings While Its Growth Engine Is Being Rebuilt
• Negative Sentiment: Adobe Chief Accounting Officer Jillian Forusz sold 416 shares worth approximately $110,000. The transaction was relatively small, but it adds to a pattern of insider selling that may weigh modestly on sentiment. SEC Form 4 filing
• Negative Sentiment: A reported collapse of a highly leveraged AI hedge fund and forced selling of AI-infrastructure positions could reinforce broader caution around crowded AI trades and software-sector volatility, although it does not directly affect Adobe’s operations. AI hedge fund collapses after margin calls

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on ADBE. Stifel Nicolaus restated a "hold" rating and issued a $200.00 price target (down from $350.00) on shares of Adobe in a research note on Friday, June 12th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Adobe in a research report on Wednesday, June 3rd. DA Davidson cut their price objective on Adobe from $300.00 to $250.00 and set a "buy" rating for the company in a research report on Friday, June 12th. BMO Capital Markets reduced their target price on Adobe from $285.00 to $230.00 and set a "market perform" rating for the company in a research note on Friday, June 12th. Finally, Mizuho reduced their target price on Adobe from $270.00 to $245.00 and set a "neutral" rating for the company in a research note on Friday, June 12th. Seven research analysts have rated the stock with a Buy rating, twenty-one have issued a Hold rating and six have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $271.30.

Insider Activity at Adobe

In other Adobe 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 sale, the chief accounting officer owned 3,824 shares of the company's stock, valued at $1,010,797.92. The trade was a 9.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director David A. Ricks bought 10,000 shares of Adobe stock in a transaction dated Thursday, June 25th. The stock was acquired at an average price of $194.51 per share, with a total value of $1,945,100.00. Following the completion of the transaction, the director directly owned 17,655 shares of the company's stock, valued at approximately $3,434,074.05. The trade was a 130.63% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.20% of the stock is currently owned by insiders.

Adobe Profile

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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