Silver Heights Capital Management Inc acquired a new position in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 97,837 shares of the software company's stock, valued at approximately $34,242,000. Adobe makes up about 13.6% of Silver Heights Capital Management Inc's investment portfolio, making the stock its 4th biggest position.
Several other hedge funds and other institutional investors also recently modified their holdings of ADBE. Norges Bank purchased a new position in shares of Adobe during the fourth quarter worth about $2,275,165,000. Arrowstreet Capital Limited Partnership grew its holdings in shares of Adobe by 53.3% during the third quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company's stock worth $1,981,448,000 after purchasing an additional 1,952,994 shares in the last quarter. Dodge & Cox grew its holdings in shares of Adobe by 8,006.6% during the third quarter. Dodge & Cox now owns 1,593,506 shares of the software company's stock worth $562,109,000 after purchasing an additional 1,573,849 shares in the last quarter. AQR Capital Management LLC grew its holdings in shares of Adobe by 55.2% during the third quarter. AQR Capital Management LLC now owns 2,587,399 shares of the software company's stock worth $912,705,000 after purchasing an additional 920,353 shares in the last quarter. Finally, Amundi grew its holdings in shares of Adobe by 17.9% during the third quarter. Amundi now owns 4,888,283 shares of the software company's stock worth $1,711,583,000 after purchasing an additional 742,646 shares in the last quarter. Hedge funds and other institutional investors own 81.79% of the company's stock.
Adobe Stock Performance
NASDAQ:ADBE opened at $206.36 on Tuesday. The firm has a market cap of $83.41 billion, a PE ratio of 11.81, a price-to-earnings-growth ratio of 0.80 and a beta of 1.42. Adobe Inc. has a fifty-two week low of $196.90 and a fifty-two week high of $405.00. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.91 and a current ratio of 0.75. The business has a 50 day moving average price of $243.81 and a 200-day moving average price of $277.53.
Adobe (NASDAQ:ADBE - Get Free Report) last released 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. The firm had revenue of $6.62 billion during the quarter, compared to analyst estimates of $6.45 billion. Adobe had a return on equity of 65.11% and a net margin of 28.69%.The business's quarterly revenue was up 12.7% compared to the same quarter last year. During the same quarter in the prior year, the firm 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 19.14 earnings per share for the current year.
Adobe declared that its Board of Directors has approved a share repurchase plan on Tuesday, April 21st that allows the company to buyback $25.00 billion in shares. This buyback authorization allows the software company to buy up to 24.9% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's leadership believes its shares are undervalued.
Analysts Set New Price Targets
Several analysts have issued reports on ADBE shares. Stifel Nicolaus reaffirmed a "hold" rating and issued a $200.00 target price (down from $350.00) on shares of Adobe in a research note on Friday. The Goldman Sachs Group reduced their price target on shares of Adobe from $220.00 to $190.00 and set a "sell" rating on the stock in a research report on Friday. Summit Redstone set a $350.00 price target on shares of Adobe in a research report on Friday, April 17th. Evercore set a $225.00 price target on shares of Adobe and gave the company an "in-line" rating in a research report on Friday. Finally, Mizuho reduced their price target on shares of Adobe from $270.00 to $245.00 and set a "neutral" rating on the stock in a research report on Friday. Five analysts have rated the stock with a Buy rating, twenty have given a Hold rating and five have given a Sell rating to the company's stock. According to MarketBeat, Adobe currently has a consensus rating of "Hold" and a consensus price target of $278.16.
Read Our Latest Stock Report on ADBE
Trending Headlines about Adobe
Here are the key news stories impacting Adobe this week:
- Positive Sentiment: Several analysts and market commentators argue Adobe looks unusually cheap after the selloff, citing valuation below 10x earnings, strong Q2 results, and raised guidance as reasons the stock could recover. Article Title
- Positive Sentiment: Articles from 247WallSt, Seeking Alpha, and other outlets highlight the gap between Adobe’s strong fundamentals and its depressed share price, with some calling it a buying opportunity and assigning significant upside targets. Article Title
- Positive Sentiment: AI product adoption remains a support for the bull case, with reports saying Adobe’s AI tools such as Firefly are gaining users, even if the company still needs to convert that usage into stronger revenue growth. Article Title
- Neutral Sentiment: Some coverage frames the stock as undervalued or a “bargain,” but this is mostly valuation commentary rather than a fresh operational catalyst. Article Title
- Negative Sentiment: Bearish commentary continues to weigh on sentiment, with analysts and options-market-based reports warning that investors still doubt Adobe’s growth durability and AI monetization, which may explain why the stock remains under pressure despite the earnings beat. Article Title
- Negative Sentiment: Ongoing headlines about a “continued deceleration,” “value trap” concerns, and fears around strategic transition risk and leadership changes suggest investors are still skeptical that Adobe can reaccelerate growth soon. Article Title
Insider Activity
In other news, CAO Jillian Forusz sold 755 shares of the stock in a transaction that occurred 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 completion of the sale, the chief accounting officer owned 3,521 shares of the company's stock, valued at approximately $867,046.25. This represents a 17.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Shantanu Narayen sold 75,000 shares of the stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $243.54, for a total value of $18,265,500.00. Following the sale, the chief executive officer directly owned 359,538 shares of the company's stock, valued at approximately $87,561,884.52. This trade represents a 17.26% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 77,091 shares of company stock valued at $18,782,773. 0.20% of the stock is currently owned by company insiders.
Adobe Profile
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Free Report)
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.
Further Reading
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