Capital World Investors Cuts Holdings in Adobe Inc. $ADBE

Capital World Investors trimmed its holdings in shares of Adobe Inc. (NASDAQ:ADBE) by 12.0% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 2,606,421 shares of the software company’s stock after selling 356,878 shares during the period. Capital World Investors owned about 0.63% of Adobe worth $912,221,000 at the end of the most recent reporting period.

A number of other large investors have also modified their holdings of the business. MCF Advisors LLC grew its holdings in shares of Adobe by 20.8% in the 3rd quarter. MCF Advisors LLC now owns 174 shares of the software company’s stock worth $61,000 after acquiring an additional 30 shares during the period. SWAN Capital LLC grew its holdings in shares of Adobe by 43.1% in the 3rd quarter. SWAN Capital LLC now owns 103 shares of the software company’s stock worth $36,000 after acquiring an additional 31 shares during the period. Logan Capital Management Inc. grew its holdings in shares of Adobe by 0.3% in the 3rd quarter. Logan Capital Management Inc. now owns 9,789 shares of the software company’s stock worth $3,453,000 after acquiring an additional 32 shares during the period. Peoples Bank KS grew its holdings in shares of Adobe by 1.6% in the 4th quarter. Peoples Bank KS now owns 2,041 shares of the software company’s stock worth $714,000 after acquiring an additional 33 shares during the period. Finally, Rosenberg Matthew Hamilton grew its holdings in shares of Adobe by 16.1% in the 4th quarter. Rosenberg Matthew Hamilton now owns 245 shares of the software company’s stock worth $86,000 after acquiring an additional 34 shares during the period. 81.79% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Adobe

In other Adobe news, CEO Shantanu Narayen sold 75,000 shares of the stock in a transaction on Tuesday, April 28th. The stock was sold at an average price of $243.54, for a total transaction of $18,265,500.00. Following the sale, the chief executive officer owned 359,538 shares in the company, valued at approximately $87,561,884.52. This represents a 17.26% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Daniel Durn sold 1,336 shares of the stock in a transaction on Monday, April 20th. The stock was sold at an average price of $248.02, for a total value of $331,354.72. Following the transaction, the chief financial officer directly owned 42,833 shares in the company, valued at approximately $10,623,440.66. This represents a 3.02% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 77,091 shares of company stock worth $18,782,773. 0.20% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

ADBE has been the topic of a number of research reports. Summit Redstone set a $350.00 price target on Adobe in a report on Friday, April 17th. TD Cowen lowered their price target on Adobe from $400.00 to $325.00 and set a “hold” rating on the stock in a report on Tuesday, March 10th. Deutsche Bank Aktiengesellschaft restated a “hold” rating on shares of Adobe in a report on Friday, March 13th. Argus restated a “hold” rating on shares of Adobe in a report on Monday, March 16th. Finally, Royal Bank Of Canada restated an “outperform” rating and issued a $350.00 price target on shares of Adobe in a report on Friday. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, seventeen have given a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat, Adobe presently has a consensus rating of “Hold” and a consensus target price of $337.62.

Adobe News Summary

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Royal Bank of Canada reaffirmed its Outperform rating on Adobe and kept a $350 price target, implying meaningful upside from current levels. This suggests some analysts still see attractive valuation and earnings potential ahead. Benzinga
• Positive Sentiment: Multiple previews ahead of Adobe’s June 11 fiscal Q2 earnings report say Wall Street expects earnings growth and a potential beat, which could support the stock if results and guidance come in stronger than expected. Yahoo Finance
• Neutral Sentiment: Coverage this week highlighted that Adobe is getting closer to choosing its next CEO, with internal and external candidates under review. Leadership transition talk adds uncertainty, but it could also be viewed as a strategic reset in the AI era. Yahoo Finance
• Negative Sentiment: Investor anxiety continues to build around Adobe’s competitive moat, with one recent article arguing that AI could threaten the “Adobe era” and help explain why the stock has fallen sharply from its 2025 highs. The Motley Fool
• Negative Sentiment: Recent market commentary also noted Adobe has been falling more than the broader market, reflecting ongoing skepticism ahead of earnings and broader concerns about growth durability. Zacks

Adobe Price Performance

Shares of NASDAQ:ADBE opened at $251.44 on Monday. The business’s fifty day moving average price is $245.80 and its two-hundred day moving average price is $281.56. The stock has a market cap of $101.63 billion, a PE ratio of 14.64, a price-to-earnings-growth ratio of 0.98 and a beta of 1.42. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.91 and a current ratio of 0.91. Adobe Inc. has a one year low of $224.13 and a one year high of $419.82.

Adobe (NASDAQ:ADBE) last announced its earnings results on Thursday, March 12th. The software company reported $6.06 EPS for the quarter, beating analysts’ consensus estimates of $5.87 by $0.19. The firm had revenue of $6.40 billion for the quarter, compared to analysts’ expectations of $6.28 billion. Adobe had a return on equity of 64.48% and a net margin of 29.48%.Adobe’s quarterly revenue was up 12.0% on a year-over-year basis. During the same quarter in the prior 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. On average, analysts forecast that Adobe Inc. will post 19.14 EPS for the current fiscal year.

Adobe declared that its Board of Directors has authorized a share repurchase program on Tuesday, April 21st that allows the company to buyback $25.00 billion in outstanding shares. This buyback authorization allows the software company to buy up to 24.9% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s leadership believes its stock is undervalued.

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.