Adobe Inc. (NASDAQ:ADBE) Given Average Rating of “Hold” by Brokerages

Adobe Inc. (NASDAQ:ADBE) has earned an average recommendation of “Hold” from the twenty-six brokerages that are currently covering the company, Marketbeat.com reports. Four investment analysts have rated the stock with a sell rating, eleven have issued a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the company. The average twelve-month price target among brokerages that have covered the stock in the last year is $401.1250.

A number of research firms recently weighed in on ADBE. Jefferies Financial Group downgraded Adobe from a “buy” rating to a “hold” rating and dropped their price target for the stock from $500.00 to $400.00 in a research note on Monday, January 5th. Wells Fargo & Company decreased their target price on Adobe from $470.00 to $420.00 and set an “overweight” rating for the company in a research report on Thursday, November 20th. Citigroup upped their price target on Adobe from $366.00 to $387.00 and gave the company a “neutral” rating in a research report on Wednesday, December 17th. The Goldman Sachs Group started coverage on Adobe in a report on Monday, January 12th. They issued a “sell” rating and a $290.00 price target for the company. Finally, Mizuho reduced their target price on Adobe from $410.00 to $390.00 and set an “outperform” rating for the company in a research report on Thursday, November 20th.

Adobe Stock Up 2.1%

Shares of ADBE opened at $262.50 on Friday. The company has a market capitalization of $107.76 billion, a PE ratio of 15.71, a PEG ratio of 1.01 and a beta of 1.51. The stock’s 50-day moving average price is $319.53 and its two-hundred day moving average price is $335.84. 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 has a 12 month low of $251.10 and a 12 month high of $465.70.

Adobe (NASDAQ:ADBE) last posted its quarterly earnings data on Wednesday, December 10th. The software company reported $5.50 EPS for the quarter, beating analysts’ consensus estimates of $5.40 by $0.10. Adobe had a net margin of 30.00% and a return on equity of 61.28%. The company had revenue of $6.19 billion for the quarter, compared to analyst estimates of $6.11 billion. During the same period in the prior year, the firm posted $4.81 EPS. The company’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. On average, analysts anticipate that Adobe will post 16.65 EPS for the current year.

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe reported a recent quarterly beat, solid margins and set FY26 guidance that implies continued earnings strength, which supports valuation and investor buying interest.
• Positive Sentiment: Adobe deepened its enterprise generative-AI partnership with Cognizant — a commercial push that helps monetize AI across large customers and supports revenue growth expectations. Adobe Deepens Cognizant Alliance To Push Enterprise Generative AI Adoption
• Positive Sentiment: Multiple analysts and outlets are calling software stocks (including Adobe) attractive after the sell-off — several pieces argue ADBE looks undervalued or “too cheap to ignore,” encouraging value-oriented buying. Adobe: Too Cheap To Ignore, AI Fears Overblown
• Positive Sentiment: Market commentary suggests heavy short interest across software names could set up a near‑term squeeze if prices stabilize; that dynamics can amplify rallies in beaten-down leaders like Adobe. Software Stocks Look Primed for a Short Squeeze
• Neutral Sentiment: Short‑interest data reported for Adobe in mid‑February shows anomalous/zero figures and inconsistent prints across feeds, so current short-interest signals are unclear and shouldn’t be over‑interpreted.
• Neutral Sentiment: PR and industry programs such as Adobe’s Creative Collective aim to bolster brand/industry positioning but are unlikely to move the stock materially in the near term. Adobe’s Creative Collective assembles multidisciplinary experts to analyse and advise on the industry’s big changes
• Negative Sentiment: A class-action suit alleges Adobe used pirated books to train AI models — this introduces legal and PR risk that could result in costs, injunctions or investor concern if litigation escalates. Class Suit Accuses Adobe of Using Pirated Books to Train AI Models
• Negative Sentiment: Short-term price weakness was highlighted in recent market coverage (ADBE fell more steeply than the broader market on the latest close), reflecting continued investor caution around AI disruption and the broader tech sell-off. Adobe Systems (ADBE) Falls More Steeply Than Broader Market: What Investors Need to Know

Insider Activity

In other news, CFO Daniel Durn sold 1,646 shares of the stock in a transaction dated Tuesday, January 27th. The stock was sold at an average price of $294.85, for a total transaction of $485,323.10. Following the transaction, the chief financial officer directly owned 41,995 shares in the company, valued at approximately $12,382,225.75. This represents a 3.77% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.16% of the company’s stock.

Institutional Investors Weigh In On Adobe

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Douglass Winthrop Advisors LLC lifted its holdings in Adobe by 3.8% in the 4th quarter. Douglass Winthrop Advisors LLC now owns 1,630 shares of the software company’s stock worth $570,000 after buying an additional 60 shares during the period. Northwest & Ethical Investments L.P. boosted its stake in Adobe by 4.1% during the 4th quarter. Northwest & Ethical Investments L.P. now owns 1,780 shares of the software company’s stock valued at $623,000 after purchasing an additional 70 shares during the last quarter. Hollencrest Capital Management lifted its position in Adobe by 10.6% during the fourth quarter. Hollencrest Capital Management now owns 7,049 shares of the software company’s stock valued at $2,467,000 after purchasing an additional 676 shares during the period. Federation des caisses Desjardins du Quebec lifted its holdings in Adobe by 2.0% in the fourth quarter. Federation des caisses Desjardins du Quebec now owns 63,064 shares of the software company’s stock valued at $22,070,000 after acquiring an additional 1,230 shares during the period. Finally, Brooklyn Investment Group lifted its position in Adobe by 22.7% during the fourth quarter. Brooklyn Investment Group now owns 9,832 shares of the software company’s stock valued at $3,472,000 after purchasing an additional 1,820 shares in the last quarter. 81.79% of the stock is currently owned by institutional investors.

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.