Wellington Grp LLC Buys 4,611 Shares of Adobe Inc. $ADBE

Key Points

• Wellington Group LLC increased its Adobe stake by 285.3% in the first quarter, purchasing 4,611 additional shares for a total holding of 6,227 shares valued at approximately $1.51 million. Institutional investors collectively own 81.79% of Adobe.
• Adobe reported quarterly revenue of $6.62 billion, up 12.7% year over year and above estimates, while adjusted earnings of $5.96 per share also topped expectations. The company additionally authorized a $25 billion share-repurchase program, covering up to 24.9% of outstanding shares.
• Wall Street remains cautious, with Adobe carrying a consensus “Hold” rating and an average price target of $271.30. Investors are weighing the company’s AI monetization opportunities and solid results against concerns about disruption, growth recovery and software-sector weakness.

Wellington Grp LLC boosted its stake in Adobe Inc. (NASDAQ:ADBE - Free Report) by 285.3% in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 6,227 shares of the software company's stock after purchasing an additional 4,611 shares during the quarter. Wellington Grp LLC's holdings in Adobe were worth $1,514,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also bought and sold shares of ADBE. Brighton Jones LLC increased its holdings in Adobe by 2.1% in the 4th quarter. Brighton Jones LLC now owns 8,068 shares of the software company's stock valued at $3,588,000 after buying an additional 167 shares during the period. Sivia Capital Partners LLC lifted its holdings in shares of Adobe by 25.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company's stock worth $926,000 after acquiring an additional 486 shares during the period. United Bank lifted its holdings in shares of Adobe by 12.8% during the 2nd quarter. United Bank now owns 3,773 shares of the software company's stock worth $1,460,000 after acquiring an additional 428 shares during the period. Schnieders Capital Management LLC. boosted its position in shares of Adobe by 7.8% during the 2nd quarter. Schnieders Capital Management LLC. now owns 2,630 shares of the software company's stock worth $1,017,000 after acquiring an additional 190 shares in the last quarter. Finally, Gamco Investors INC. ET AL increased its stake in Adobe by 190.6% in the second quarter. Gamco Investors INC. ET AL now owns 2,764 shares of the software company's stock valued at $1,069,000 after acquiring an additional 1,813 shares during the last quarter. Institutional investors own 81.79% of the company's stock.

Key Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe’s latest AI acquisition reportedly cleared Washington without significant regulatory obstacles, removing a potential deal risk and strengthening the company’s efforts to expand AI-powered creative tools. Adobe's latest AI acquisition just breezed through Washington
• Positive Sentiment: Recent commentary argues that AI is enhancing Adobe’s business rather than replacing it, potentially supporting new monetization opportunities, stronger customer engagement and a rebuilding of the company’s growth engine. Adobe’s latest quarterly results also showed roughly 13% year-over-year revenue growth and performance above analyst expectations. Adobe: How AI Is Enhancing Its Business, Not Killing It
• Positive Sentiment: Investors are also considering ways to participate in Adobe’s AI upside while hedging risks, suggesting that the stock remains a significant target for AI-related trading and positioning. As Adobe monetizes AI, here's a way to trade it and hedge against risks
• Neutral Sentiment: Analyst and investor views remain divided. Some see Adobe’s valuation and free-cash-flow generation as attractive, while others remain concerned about AI disruption, software-sector weakness and the need to restore faster growth. Adobe Stock Trades Below The Market on Earnings While Its Growth Engine Is Being Rebuilt
• Negative Sentiment: Adobe Chief Accounting Officer Jillian Forusz sold 416 shares worth approximately $110,000. The transaction was relatively small, but it adds to a pattern of insider selling that may weigh modestly on sentiment. SEC Form 4 filing
• Negative Sentiment: A reported collapse of a highly leveraged AI hedge fund and forced selling of AI-infrastructure positions could reinforce broader caution around crowded AI trades and software-sector volatility, although it does not directly affect Adobe’s operations. AI hedge fund collapses after margin calls

Adobe Stock Up 1.0%

Shares of NASDAQ ADBE opened at $250.41 on Friday. The company has a 50 day simple moving average of $226.69 and a 200 day simple moving average of $248.84. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.75 and a quick ratio of 0.75. Adobe Inc. has a 1 year low of $190.12 and a 1 year high of $370.86. The firm has a market cap of $99.54 billion, a PE ratio of 14.33, a price-to-earnings-growth ratio of 0.83 and a beta of 1.43.

Adobe (NASDAQ:ADBE - Get Free Report) last posted its earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share 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 firm had revenue of $6.62 billion for the quarter, compared to analyst estimates of $6.45 billion. During the same period in the previous year, the firm posted $5.06 EPS. The company's revenue for the quarter 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. On average, research analysts forecast that Adobe Inc. will post 19.81 EPS for the current year.

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

Wall Street Analysts Forecast Growth

Several brokerages have commented on ADBE. Citigroup restated a "market perform" rating on shares of Adobe in a research report on Friday, June 12th. HSBC raised Adobe from a "hold" rating to a "buy" rating and raised their target price for the company from $282.00 to $308.00 in a report on Thursday, July 2nd. Barclays decreased their price target on Adobe from $275.00 to $250.00 and set an "equal weight" rating on the stock in a research note on Friday, June 12th. Royal Bank Of Canada lowered their price target on Adobe from $350.00 to $285.00 and set an "outperform" rating for the company in a report on Monday, June 8th. Finally, Dbs Bank downgraded Adobe from a "moderate buy" rating to a "hold" rating in a research report on Tuesday, May 19th. Seven analysts have rated the stock with a Buy rating, twenty-one have assigned a Hold rating and six have issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $271.30.

Insiders Place Their Bets

In related news, Director David A. Ricks bought 10,000 shares of the stock in a transaction that occurred on Thursday, June 25th. The stock was acquired at an average cost of $194.51 per share, with a total value of $1,945,100.00. Following the transaction, the director directly owned 17,655 shares in the company, valued at approximately $3,434,074.05. This trade represents a 130.63% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Jillian Forusz sold 416 shares of Adobe stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $264.33, for a total value of $109,961.28. Following 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 ownership of the stock. The SEC filing for this sale provides additional information. 0.20% of the stock is currently owned by insiders.

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.

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