Texas Capital Bank Wealth Management Services Inc Purchases 10,366 Shares of Adobe Inc. $ADBE

Key Points

• Texas Capital Bank Wealth Management Services dramatically increased its Adobe stake in the fourth quarter, adding 10,366 shares and lifting holdings to 11,049 shares valued at about $3.87 million.
• Adobe continues to see heavy institutional ownership, with funds like Vanguard, State Street, and Geode also adding shares; overall, institutions own 81.79% of the stock.
• The company reported strong quarterly results and authorized a $25 billion buyback, but sentiment remains mixed as insiders sold shares and analysts mostly rate the stock Hold with a consensus target of $338.15.

Texas Capital Bank Wealth Management Services Inc raised its stake in Adobe Inc. (NASDAQ:ADBE - Free Report) by 1,517.7% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 11,049 shares of the software company's stock after acquiring an additional 10,366 shares during the quarter. Texas Capital Bank Wealth Management Services Inc's holdings in Adobe were worth $3,867,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its stake in Adobe by 0.8% in the third quarter. Vanguard Group Inc. now owns 41,369,395 shares of the software company's stock valued at $14,593,054,000 after acquiring an additional 344,816 shares during the last quarter. State Street Corp boosted its stake in Adobe by 1.7% in the third quarter. State Street Corp now owns 20,632,009 shares of the software company's stock valued at $7,277,941,000 after acquiring an additional 352,448 shares during the last quarter. Geode Capital Management LLC boosted its stake in Adobe by 3.7% in the fourth quarter. Geode Capital Management LLC now owns 11,531,678 shares of the software company's stock valued at $4,027,170,000 after acquiring an additional 414,049 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its stake in Adobe by 53.3% in the third quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company's stock valued at $1,981,448,000 after acquiring an additional 1,952,994 shares during the last quarter. Finally, Amundi boosted its stake in Adobe by 17.9% in the third quarter. Amundi now owns 4,888,283 shares of the software company's stock valued at $1,711,583,000 after acquiring an additional 742,646 shares during the last quarter. 81.79% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other Adobe news, 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 in the company, valued at $87,561,884.52. This represents a 17.26% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, 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 in the company, valued at $867,046.25. This represents a 17.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 77,091 shares of company stock worth $18,782,773 in the last three months. 0.20% of the stock is currently owned by corporate insiders.

Adobe Stock Performance

Shares of ADBE stock opened at $238.24 on Thursday. The stock has a market capitalization of $96.30 billion, a P/E ratio of 13.88, a PEG ratio of 0.94 and a beta of 1.42. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.47. The firm's 50 day moving average is $244.10 and its 200 day moving average is $285.17. Adobe Inc. has a 12 month low of $224.13 and a 12 month high of $421.48.

Adobe (NASDAQ:ADBE - Get Free Report) last posted its earnings results on Thursday, March 12th. The software company reported $6.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.87 by $0.19. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The business had revenue of $6.40 billion for the quarter, compared to analysts' expectations of $6.28 billion. During the same period in the prior year, the company posted $5.08 EPS. The business's revenue for the quarter was up 12.0% compared to the same quarter last year. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. On average, sell-side analysts anticipate that Adobe Inc. will post 19.14 earnings per share for the current year.

Adobe announced that its board has initiated a stock buyback program on Tuesday, April 21st that permits the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization permits the software company to repurchase up to 24.9% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on ADBE shares. KeyCorp dropped their target price on shares of Adobe from $310.00 to $235.00 and set an "underweight" rating on the stock in a research note on Friday, March 13th. William Blair cut shares of Adobe from an "outperform" rating to a "market perform" rating in a research note on Thursday, March 26th. Jefferies Financial Group dropped their price target on shares of Adobe from $400.00 to $290.00 and set a "hold" rating on the stock in a research note on Monday, February 23rd. Oppenheimer restated a "market perform" rating on shares of Adobe in a research note on Friday, March 13th. Finally, Sanford C. Bernstein set a $447.00 price target on shares of Adobe and gave the company an "outperform" rating in a research note on Friday, March 13th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, seventeen have assigned a Hold rating and five have given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $338.15.

Adobe News Summary

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe remains a strong cash-generating business, with recent commentary calling it a “free cash flow machine,” which may appeal to value-focused investors. Adobe: A Free Cash Flow Machine In Full Gear
• Positive Sentiment: Analysts and commentary are increasingly viewing Adobe as potentially undervalued after its selloff, implying upside if AI fears prove overdone. Is Adobe Stock an Undervalued Stock to Buy?
• Neutral Sentiment: Recent coverage comparing Adobe with Autodesk suggests both are investing in AI and subscriptions, but Adobe is being overshadowed by peers with better growth expectations. Adobe vs. Autodesk: Which Creative Software Stock Is the Better Buy?
• Neutral Sentiment: Adobe also appeared in a broader software-stock roundup, reinforcing that it remains a key name in the sector, though not a direct catalyst by itself. Adobe vs. Autodesk: Which Creative Software Stock Is the Better Buy?
• Negative Sentiment: Investor concerns remain centered on AI disruption, with commentary saying those fears have weighed on Adobe’s performance and sentiment. AI Disruption Concerns Weighed on Adobe’s (ADBE) Performance
• Negative Sentiment: One bearish article grouped Adobe among software names that may be vulnerable to AI disruption, adding to the market’s caution around the stock. These Are the Four Signs a Company Is About to Destroyed by AI

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.