VIRGINIA RETIREMENT SYSTEMS ET Al Has $60.24 Million Holdings in Adobe Inc. $ADBE

Key Points

• Virginia Retirement Systems increased its Adobe stake by 61.9% in the fourth quarter, ending with 172,121 shares valued at about $60.24 million.
• Wall Street sentiment remains mixed, with several firms lowering price targets and the consensus rating on Adobe sitting at Hold with an average target price of $338.15.
• Adobe reported solid quarterly results and also authorized a $25 billion share buyback, but the stock remains under pressure amid ongoing concerns that AI could hurt its long-term competitive moat.

VIRGINIA RETIREMENT SYSTEMS ET Al boosted its stake in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 61.9% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 172,121 shares of the software company's stock after purchasing an additional 65,807 shares during the quarter. VIRGINIA RETIREMENT SYSTEMS ET Al's holdings in Adobe were worth $60,241,000 at the end of the most recent quarter.

Several other large investors have also recently bought and sold shares of the stock. Arrowstreet Capital Limited Partnership raised its stake in shares of Adobe by 53.3% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company's stock valued at $1,981,448,000 after buying an additional 1,952,994 shares in the last quarter. Dodge & Cox raised its stake in shares of Adobe by 8,006.6% in the 3rd quarter. Dodge & Cox now owns 1,593,506 shares of the software company's stock valued at $562,109,000 after buying an additional 1,573,849 shares in the last quarter. AQR Capital Management LLC raised its stake in shares of Adobe by 55.2% in the 3rd quarter. AQR Capital Management LLC now owns 2,587,399 shares of the software company's stock valued at $912,705,000 after buying an additional 920,353 shares in the last quarter. Amundi raised its stake in shares of Adobe by 17.9% in the 3rd quarter. Amundi now owns 4,888,283 shares of the software company's stock valued at $1,711,583,000 after buying an additional 742,646 shares in the last quarter. Finally, Victory Capital Management Inc. raised its stake in shares of Adobe by 112.6% in the 3rd quarter. Victory Capital Management Inc. now owns 1,341,410 shares of the software company's stock valued at $469,467,000 after buying an additional 710,357 shares in the last quarter. 81.79% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

ADBE has been the subject of a number of recent research reports. Jefferies Financial Group dropped their price objective on shares of Adobe from $400.00 to $290.00 and set a "hold" rating for the company in a research note on Monday, February 23rd. BTIG Research started coverage on shares of Adobe in a report on Monday, April 13th. They issued a "neutral" rating on the stock. Barclays lowered shares of Adobe from an "overweight" rating to an "equal weight" rating and lowered their target price for the stock from $335.00 to $275.00 in a report on Friday, March 13th. Citigroup reaffirmed a "neutral" rating on shares of Adobe in a report on Friday, April 10th. Finally, Royal Bank Of Canada decreased their price objective on shares of Adobe from $400.00 to $350.00 and set an "outperform" rating on the stock in a report on Friday, April 17th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, sixteen have given a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $338.15.

Key Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Some analysts and value-focused commentary say Adobe remains attractive for long-term investors, citing its earnings power, valuation, and resilient business model. Why Adobe Systems (ADBE) is a top value stock for the long term
• Positive Sentiment: TipRanks argued the market may be overstating AI disruption risk, suggesting Adobe’s business still has strength beneath the stock’s recent weakness. The Market Thinks AI Crushed Adobe (ADBE). The Business Says Otherwise
• Positive Sentiment: Adobe is expanding its product reach with a new Adobe Premiere launch for Android, which could help broaden its consumer and creator footprint over time. Android users, rejoice: Adobe Premiere is headed your way at last
• Neutral Sentiment: Wall Street coverage remains mixed but not deeply negative, with some commentary saying analysts are still moderately optimistic about Adobe despite underperformance versus the broader market. Adobe Stock: Is Wall Street Bullish or Bearish?
• Neutral Sentiment: Adobe patched 52 vulnerabilities across 10 products, a routine security update that is important operationally but does not appear to be a major market-moving issue. Adobe Patches 52 Vulnerabilities in 10 Products
• Negative Sentiment: The main drag on the stock is continued concern that AI could erode Adobe’s pricing power and long-term software moat, which has kept pressure on shares. Adobe: The Market Refuses To See AI As A Tailwind
• Negative Sentiment: Recent market notes say Adobe Inc. (ADBE) declined more than the broader market, reinforcing the view that investors are still rotating away from the name. Adobe Systems (ADBE) Declines More Than Market: Some Information for Investors

Adobe Stock Down 2.2%

Shares of NASDAQ ADBE opened at $240.83 on Wednesday. The firm has a market capitalization of $97.34 billion, a PE ratio of 14.03, a price-to-earnings-growth ratio of 0.96 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. Adobe Inc. has a 1 year low of $224.13 and a 1 year high of $422.95. The firm's 50-day moving average is $249.61 and its 200-day moving average is $292.79.

Adobe (NASDAQ:ADBE - Get Free Report) last issued its earnings results on Thursday, March 12th. The software company reported $6.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.87 by $0.19. The company had revenue of $6.40 billion for the quarter, compared to analyst estimates of $6.28 billion. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The company's revenue for the quarter was up 12.0% on a year-over-year basis. During the same quarter last year, the firm earned $5.08 EPS. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. Equities analysts expect that Adobe Inc. will post 19.14 EPS for the current year.

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

Insider Activity

In related 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 trade represents a 17.26% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Daniel Durn sold 1,336 shares of the 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 sale, the chief financial officer owned 42,833 shares in the company, valued at $10,623,440.66. This represents a 3.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 77,091 shares of company stock valued at $18,782,773. 0.20% of the stock is currently owned by insiders.

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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