Homestead Advisers Corp Makes New Investment in Adobe Inc. $ADBE

Homestead Advisers Corp acquired a new position in Adobe Inc. (NASDAQ:ADBE) during the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm acquired 87,700 shares of the software company’s stock, valued at approximately $30,936,000.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the business. Brighton Jones LLC boosted its position in shares of Adobe by 2.1% during the 4th quarter. Brighton Jones LLC now owns 8,068 shares of the software company’s stock valued at $3,588,000 after acquiring an additional 167 shares during the last quarter. Sivia Capital Partners LLC raised its stake in Adobe by 25.5% in the second quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company’s stock valued at $926,000 after purchasing an additional 486 shares in the last quarter. Country Club Bank lifted its position in Adobe by 11.1% during the second quarter. Country Club Bank now owns 3,707 shares of the software company’s stock valued at $1,430,000 after purchasing an additional 369 shares during the last quarter. Sax Wealth Advisors LLC bought a new stake in Adobe during the second quarter valued at approximately $217,000. Finally, Proffitt & Goodson Inc. grew its stake in Adobe by 3.6% in the 2nd quarter. Proffitt & Goodson Inc. now owns 1,919 shares of the software company’s stock worth $742,000 after buying an additional 66 shares in the last quarter. 81.79% of the stock is currently owned by hedge funds and other institutional investors.

Adobe Trading Up 2.9%

NASDAQ ADBE opened at $279.71 on Thursday. The firm has a market cap of $114.82 billion, a PE ratio of 16.74, a price-to-earnings-growth ratio of 1.07 and a beta of 1.51. Adobe Inc. has a 1-year low of $264.04 and a 1-year high of $465.70. The stock has a 50-day moving average of $326.53 and a 200-day moving average of $340.06. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.53.

Adobe (NASDAQ:ADBE) last announced its quarterly earnings results on Wednesday, December 10th. The software company reported $5.50 EPS for the quarter, topping analysts’ consensus estimates of $5.40 by $0.10. Adobe had a return on equity of 61.28% and a net margin of 30.00%.The business had revenue of $6.19 billion for the quarter, compared to analysts’ expectations of $6.11 billion. During the same period in the previous year, the firm earned $4.81 EPS. The business’s quarterly revenue was up 10.5% on a year-over-year basis. Adobe has set its Q1 2026 guidance at 5.850-5.900 EPS and its FY 2026 guidance at 23.300-23.500 EPS. As a group, sell-side analysts forecast that Adobe Inc. will post 16.65 EPS for the current year.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe reversed course on plans to discontinue Adobe Animate after broad community backlash, putting the app into “maintenance mode” — a quick PR/operational fix that removed a key headline risk and likely helped calm creative customers. Adobe actually won’t discontinue Animate
• Positive Sentiment: Semrush shareholders approved the merger agreement with Adobe, advancing a strategic acquisition that can bolster Adobe’s marketing analytics and advertising offerings. That M&A progress supports longer-term growth optionality. Semrush Shareholders Approve Merger Agreement with Adobe
• Positive Sentiment: Adobe expanded its Cognizant AI partnership, a commercial move that could accelerate enterprise adoption of Adobe’s AI tools and support revenue diversification beyond creative suites. Adobe’s Expanded Cognizant AI Partnership Might Change The Case For Investing In Adobe (ADBE)
• Neutral Sentiment: Broader software-sector selling pressure and debate over AI leaders (e.g., Anthropic/Claude capabilities) continue to weigh on multiples; some of Adobe’s moves reflect sector dynamics, not company-specific weakness. Why Software Is Facing A Market Sell-Off
• Neutral Sentiment: Market commentary cautions against “bottom-feeding” in sell-offs, a reminder that today’s bounce may be part of a broader, volatile re-pricing in tech names. Do Stock Sell-Offs Pay Off?
• Negative Sentiment: Adobe materially increased ad spending (reported ~$1.4B) as competition from AI tools rises — investors see rising marketing spend as a signal that organic demand/GTM is under strain, which can pressure margins and near-term EPS. Adobe boosts ad spending to $1.4 billion to attack fear over AI
• Negative Sentiment: Several sell-side firms cut price targets or ratings (UBS, Baird, BMO) citing slower AI monetization and tougher comps, adding technical downward pressure and reducing near-term analyst support. UBS, Baird Lower PT on Adobe (ADBE)
• Negative Sentiment: Stock recently hit 52-week lows and dropped materially in prior sessions amid sector weakness and worries over product strategy — a reminder that investor confidence is fragile despite today’s rebound. Is Adobe Stock Now A Falling Knife?
• Negative Sentiment: The initial announcement to retire Adobe Animate (before the reversal) triggered significant backlash and negative publicity — evidence that execution missteps on legacy products can quickly erode goodwill with creative customers. Adobe Ends Animate, Abandoning Millions Of Artists Amid AI Push

Wall Street Analysts Forecast Growth

ADBE has been the topic of several research reports. Piper Sandler cut shares of Adobe from an “overweight” rating to a “neutral” rating and lowered their price objective for the company from $470.00 to $330.00 in a research report on Monday. DA Davidson restated a “buy” rating and set a $500.00 price target on shares of Adobe in a research report on Thursday, December 11th. UBS Group dropped their price target on Adobe from $375.00 to $340.00 and set a “neutral” rating for the company in a research note on Monday, January 26th. Weiss Ratings cut Adobe from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday. Finally, The Goldman Sachs Group began coverage on Adobe in a report on Monday, January 12th. They set a “sell” rating and a $290.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, eleven have given a Hold rating and five have given a Sell rating to the stock. According to MarketBeat, Adobe presently has an average rating of “Hold” and an average price target of $391.81.

Insider Buying and Selling

In related news, CFO Daniel Durn sold 1,646 shares of the company’s stock in a transaction on Tuesday, January 27th. The shares were sold at an average price of $294.85, for a total transaction of $485,323.10. Following the completion of the sale, the chief financial officer directly owned 41,995 shares in the company, valued at $12,382,225.75. This represents a 3.77% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 0.16% of the stock is owned by corporate 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.