Trust Co. of Vermont Takes Position in Adobe Inc. $ADBE

Key Points

• Trust Co. of Vermont bought 9,162 Adobe shares worth approximately $1.88 million during the second quarter. Institutional investors collectively own 81.79% of Adobe’s outstanding stock.
• Adobe exceeded quarterly expectations, reporting $5.96 in EPS and $6.62 billion in revenue, with revenue up 12.7% year over year. The company also authorized a $25 billion share-repurchase program covering up to 24.9% of outstanding shares.
• Analyst sentiment remains cautious: Adobe has an average “Hold” rating and an average price target of $269.81, while several firms recently cut ratings or price targets. The stock opened at $254.04, compared with a 52-week range of $190.12 to $370.86.

Trust Co. of Vermont purchased a new position in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 9,162 shares of the software company's stock, valued at approximately $1,878,000.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. State Street Corp boosted its stake in shares of Adobe by 1.7% during the third quarter. State Street Corp now owns 20,632,009 shares of the software company's stock worth $7,277,941,000 after buying an additional 352,448 shares during the period. Geode Capital Management LLC grew its holdings in shares of Adobe by 3.7% during the fourth 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 last quarter. Arrowstreet Capital Limited Partnership increased its position in Adobe by 9.1% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 6,792,275 shares of the software company's stock valued at $1,651,066,000 after acquiring an additional 563,772 shares during the period. Norges Bank acquired a new position in Adobe in the 4th quarter valued at about $2,275,165,000. Finally, Invesco Ltd. lifted its position in Adobe by 6.2% during the 4th quarter. Invesco Ltd. now owns 5,119,025 shares of the software company's stock worth $1,791,607,000 after acquiring an additional 297,337 shares during the period. 81.79% of the stock is owned by hedge funds and other institutional investors.

Adobe Price Performance

Shares of NASDAQ ADBE opened at $254.04 on Tuesday. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 0.42. The company's 50-day moving average price is $228.82 and its 200 day moving average price is $245.32. Adobe Inc. has a 52 week low of $190.12 and a 52 week high of $370.86. The stock has a market cap of $100.98 billion, a price-to-earnings ratio of 14.53, a PEG ratio of 0.89 and a beta of 1.40.

Adobe (NASDAQ:ADBE - Get Free Report) last announced its earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.82 by $0.14. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The company had revenue of $6.62 billion during the quarter, compared to analysts' expectations of $6.45 billion. During the same quarter in the previous year, the business posted $5.06 earnings per share. The firm's quarterly revenue was up 12.7% compared to the same quarter last year. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. As a group, research analysts forecast that Adobe Inc. will post 19.81 earnings per share for the current fiscal year.

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

Analyst Ratings Changes

A number of research firms have recently issued reports on ADBE. Phillip Securities lowered Adobe from a "strong-buy" rating to a "hold" rating in a report on Monday, June 29th. Oppenheimer reiterated a "market perform" rating on shares of Adobe in a research report on Friday, June 12th. DA Davidson dropped their price objective on shares of Adobe from $300.00 to $250.00 and set a "buy" rating on the stock in a research note on Friday, June 12th. Wolfe Research downgraded shares of Adobe from an "outperform" rating to a "peer perform" rating in a research report on Friday, June 12th. Finally, Robert W. Baird reduced their target price on shares of Adobe from $270.00 to $230.00 and set a "neutral" rating for the company in a research note on Friday, June 12th. Seven equities research analysts have rated the stock with a Buy rating, twenty-one have assigned a Hold rating and five have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $269.81.

Insider Activity at Adobe

In related news, CAO Jillian Forusz sold 416 shares of Adobe stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $264.33, for a total transaction of $109,961.28. Following the completion of the transaction, the chief accounting officer directly owned 3,824 shares in the company, 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 at this hyperlink. Also, Director David A. Ricks bought 10,000 shares of Adobe stock in a transaction that occurred on Thursday, June 25th. The stock was bought at an average cost of $194.51 per share, for a total transaction of $1,945,100.00. Following the purchase, the director owned 17,655 shares in the company, valued at $3,434,074.05. This represents a 130.63% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 0.20% of the company's stock.

About Adobe

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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