State of Wisconsin Investment Board Sells 10,515 Shares of Adobe Inc. $ADBE

Key Points

• State of Wisconsin Investment Board reduced its Adobe stake by 4.6% in the fourth quarter, selling 10,515 shares and leaving it with 216,885 shares valued at about $75.9 million.
• Adobe reported strong quarterly results, with EPS of $5.96 and revenue of $6.62 billion, both ahead of analyst expectations. The company also issued upbeat FY 2026 and Q3 2026 guidance.
• Despite the earnings beat, sentiment remains mixed as several analysts have cut price targets or ratings, citing slowing spend and weaker AI credit demand, while Adobe continues to push its AI strategy and a $25 billion share buyback plan.

State of Wisconsin Investment Board cut its stake in Adobe Inc. (NASDAQ:ADBE - Free Report) by 4.6% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 216,885 shares of the software company's stock after selling 10,515 shares during the period. State of Wisconsin Investment Board owned 0.05% of Adobe worth $75,908,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors also recently modified their holdings of the stock. State Street Corp raised its stake in shares of Adobe by 1.7% in the third quarter. State Street Corp now owns 20,632,009 shares of the software company's stock worth $7,277,941,000 after acquiring an additional 352,448 shares during the last quarter. Geode Capital Management LLC grew its position in shares of Adobe by 3.7% during the 4th quarter. Geode Capital Management LLC now owns 11,531,678 shares of the software company's stock worth $4,027,170,000 after buying an additional 414,049 shares during the period. Norges Bank acquired a new stake in shares of Adobe during the 4th quarter worth approximately $2,275,165,000. Arrowstreet Capital Limited Partnership grew its position in shares of Adobe by 10.9% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 6,228,503 shares of the software company's stock worth $2,179,914,000 after buying an additional 611,358 shares during the period. Finally, Amundi grew its position in shares of Adobe by 17.9% during the 3rd quarter. Amundi now owns 4,888,283 shares of the software company's stock worth $1,711,583,000 after buying an additional 742,646 shares during the period. 81.79% of the stock is owned by institutional investors.

Adobe Stock Up 0.5%

Shares of NASDAQ ADBE opened at $207.32 on Wednesday. The stock has a market cap of $83.80 billion, a P/E ratio of 11.86, a P/E/G ratio of 0.72 and a beta of 1.42. The firm has a 50 day moving average price of $243.10 and a 200 day moving average price of $276.75. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.91 and a current ratio of 0.75. Adobe Inc. has a 52-week low of $196.90 and a 52-week high of $399.67.

Adobe (NASDAQ:ADBE - Get Free Report) last issued its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 earnings per share (EPS) 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 analysts' expectations of $6.45 billion. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The business's revenue for the quarter was up 12.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $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. Analysts expect that Adobe Inc. will post 19.87 EPS for the current year.

Adobe declared that its Board of Directors has authorized a share buyback plan on Tuesday, April 21st that authorizes the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization authorizes the software company to buy up to 24.9% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its stock is undervalued.

Insider Activity at Adobe

In related news, CFO Daniel Durn sold 1,336 shares of the business's stock in a transaction that occurred 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 completion of the transaction, the chief financial officer owned 42,833 shares in the company, valued at approximately $10,623,440.66. The trade was a 3.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Jillian Forusz sold 755 shares of the business's stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $246.25, for a total transaction of $185,918.75. Following the transaction, 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 position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 77,091 shares of company stock worth $18,782,773. 0.20% of the stock is currently owned by company insiders.

Key Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe remains a strong value case in several recent commentaries, with analysts and market watchers highlighting its discounted valuation, strong ROIC, and record quarterly results as reasons the stock could be undervalued after a steep pullback.
• Positive Sentiment: The company’s AI strategy continues to gain traction, including growing adoption of Firefly and a new global AI skills initiative with LinkedIn aimed at helping marketers use AI tools more effectively. Article Title
• Positive Sentiment: Adobe also announced a public push on AI policy, joining other tech companies in urging the White House to ease Anthropic AI export restrictions, underscoring its broader involvement in the AI ecosystem. Article Title
• Neutral Sentiment: Several pieces suggest investors are watching Adobe closely for signs that strong AI usage can translate into faster revenue growth, but that monetization challenge is still unresolved.
• Negative Sentiment: TD Cowen cut its price target on Adobe to $285 from $310, citing slowing spend and weaker-than-expected AI credit demand, which reinforced concerns that near-term growth may be decelerating.
• Negative Sentiment: The surprise departure of Adobe’s CFO has also weighed on sentiment, with articles framing the stock as a “battleground” name as investors question management stability after the executive change. Article Title
• Negative Sentiment: Recent coverage also notes that Adobe shares have fallen back toward 2019 lows, reflecting continued investor skepticism despite the earnings beat and raised outlook.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on ADBE. Wall Street Zen cut shares of Adobe from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. JPMorgan Chase & Co. lowered their price target on shares of Adobe from $420.00 to $340.00 and set an "overweight" rating for the company in a research report on Friday, June 12th. Wolfe Research cut shares of Adobe from an "outperform" rating to a "peer perform" rating in a research report on Friday. DA Davidson lowered their price target on shares of Adobe from $300.00 to $250.00 and set a "buy" rating for the company in a research report on Friday, June 12th. Finally, TD Cowen lowered their price target on shares of Adobe from $310.00 to $285.00 and set a "hold" rating for the company in a research report on Monday, June 8th. Five equities research analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and five have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $278.16.

Adobe Company 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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