Thornburg Investment Management Inc. Acquires 40,847 Shares of Adobe Inc. $ADBE

Key Points

• Thornburg Investment Management increased its Adobe stake by 70% in the fourth quarter, buying 40,847 additional shares and bringing its total holdings to 99,185 shares valued at about $34.7 million.
• Adobe reported better-than-expected quarterly results, with EPS of $5.96 on revenue of $6.62 billion, and raised its full-year and Q3 guidance. The company also highlighted strong AI-related demand and said AI-first annual recurring revenue topped $500 million.
• Despite the earnings beat, Wall Street remains cautious: several analysts cut price targets, and Adobe’s consensus rating is currently “Hold” with an average target price of $278.16. Investor concerns also include leadership uncertainty after CFO Dan Durn’s departure.

Thornburg Investment Management Inc. grew its holdings in Adobe Inc. (NASDAQ:ADBE - Free Report) by 70.0% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 99,185 shares of the software company's stock after acquiring an additional 40,847 shares during the quarter. Thornburg Investment Management Inc.'s holdings in Adobe were worth $34,714,000 at the end of the most recent reporting period.

Other large investors also recently modified their holdings of the company. Western Pacific Wealth Management LP bought a new stake in shares of Adobe in the fourth quarter worth about $26,000. Measured Wealth Private Client Group LLC bought a new stake in shares of Adobe in the third quarter worth about $26,000. KERR FINANCIAL PLANNING Corp bought a new stake in shares of Adobe in the third quarter worth about $27,000. Caitlin John LLC bought a new stake in shares of Adobe in the third quarter worth about $28,000. Finally, Beacon Financial Strategies CORP bought a new stake in shares of Adobe in the fourth quarter worth about $28,000. 81.79% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of research firms recently issued reports on ADBE. Summit Redstone set a $350.00 price objective on Adobe in a report on Friday, April 17th. Mizuho decreased their price objective on Adobe from $270.00 to $245.00 and set a "neutral" rating for the company in a report on Friday. TD Cowen decreased their price objective on Adobe from $310.00 to $285.00 and set a "hold" rating for the company in a report on Monday, June 8th. BTIG Research began coverage on Adobe in a report on Monday, April 13th. They set a "neutral" rating for the company. Finally, JPMorgan Chase & Co. decreased their price objective on Adobe from $420.00 to $340.00 and set an "overweight" rating for the company in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, twenty have assigned a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat.com, Adobe currently has a consensus rating of "Hold" and an average price target of $278.16.

Adobe Stock Performance

ADBE opened at $204.02 on Monday. Adobe Inc. has a 12-month low of $196.90 and a 12-month high of $405.00. The stock has a market cap of $82.46 billion, a price-to-earnings ratio of 11.67, a PEG ratio of 0.80 and a beta of 1.42. The business has a 50 day moving average of $244.54 and a 200-day moving average of $278.32. The company has a quick ratio of 0.91, a current ratio of 0.75 and a debt-to-equity ratio of 0.42.

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 (EPS) for the quarter, beating analysts' consensus estimates 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 analysts' expectations of $6.45 billion. During the same period last year, the firm posted $5.06 earnings per share. The business's 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, equities research analysts expect that Adobe Inc. will post 19.14 earnings per share for the current year.

Adobe declared that its Board of Directors has authorized a share buyback program on Tuesday, April 21st that permits the company to buyback $25.00 billion in outstanding shares. This buyback authorization permits the software company to buy up to 24.9% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its shares are undervalued.

Insider Activity

In other news, CFO Daniel Durn sold 1,336 shares of the stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $248.02, for a total transaction of $331,354.72. Following the transaction, the chief financial officer owned 42,833 shares in the company, valued at approximately $10,623,440.66. This trade represents a 3.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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 value of $185,918.75. Following the transaction, the chief accounting officer owned 3,521 shares in the company, valued at approximately $867,046.25. This trade represents a 17.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 77,091 shares of company stock valued at $18,782,773 over the last three months. Insiders own 0.20% of the company's stock.

More Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe reported record Q2 revenue of $6.62 billion and EPS of $5.96, both above expectations, while also raising full-year revenue and earnings guidance. The company said AI-driven demand and stronger subscription spending supported results. Adobe Reports Record Q2 Results
• Positive Sentiment: Management highlighted accelerating adoption of Adobe’s AI tools, with AI-first annual recurring revenue topping $500 million, which supports the long-term growth case. Adobe Q2 Earnings Beat Estimates, Revenues Up Y/Y, Shares Fall
• Neutral Sentiment: Despite the beat, Adobe signaled a strategic shift toward freemium AI products and prioritizing user growth over immediate monetization, which adds uncertainty around near-term ARR growth. ADBE Q2 Earnings Call Centers on Freemium AI Push, Raised Outlook
• Negative Sentiment: Investors were rattled by the sudden departure of CFO Dan Durn, which adds to leadership uncertainty while Adobe is also in the middle of a CEO succession process. Adobe raises annual revenue forecast, CFO to exit
• Negative Sentiment: Wall Street reacted with multiple price-target cuts and downgrades, reflecting concerns that Adobe’s core growth may be decelerating and that AI monetization is still not proven. Leadership Exits, Decelerating Core Growth Cloud Adobe's Earnings Beat

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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