Adobe Inc. $ADBE Stake Cut by Azzad Asset Management Inc. ADV

Azzad Asset Management Inc. ADV cut its holdings in shares of Adobe Inc. (NASDAQ:ADBE) by 86.7% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 915 shares of the software company’s stock after selling 5,973 shares during the quarter. Azzad Asset Management Inc. ADV’s holdings in Adobe were worth $222,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently bought and sold shares of the business. Measured Wealth Private Client Group LLC acquired a new position in Adobe in the 3rd quarter valued at approximately $26,000. Western Pacific Wealth Management LP purchased a new stake in shares of Adobe during the fourth quarter worth $26,000. Beacon Financial Strategies CORP acquired a new stake in Adobe during the fourth quarter valued at $28,000. TrustBank purchased a new position in Adobe in the fourth quarter valued at about $28,000. Finally, KERR FINANCIAL PLANNING Corp purchased a new position in Adobe in the third quarter valued at about $27,000. Hedge funds and other institutional investors own 81.79% of the company’s stock.

Adobe Stock Performance

Shares of NASDAQ:ADBE traded up $0.99 during trading on Friday, reaching $223.64. The stock had a trading volume of 3,205,588 shares, compared to its average volume of 7,842,919. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 0.42. The stock has a fifty day simple moving average of $230.84 and a two-hundred day simple moving average of $260.53. The firm has a market capitalization of $88.90 billion, a price-to-earnings ratio of 12.79, a P/E/G ratio of 0.75 and a beta of 1.43. Adobe Inc. has a 52 week low of $190.12 and a 52 week high of $376.16.

Adobe (NASDAQ:ADBE) last announced its earnings results on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, topping the consensus estimate of $5.82 by $0.14. The firm had revenue of $6.62 billion for the quarter, compared to the consensus estimate of $6.45 billion. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The business’s quarterly revenue was up 12.7% on a year-over-year basis. During the same quarter last year, the firm posted $5.06 EPS. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. As a group, analysts anticipate that Adobe Inc. will post 19.8 earnings per share for the current fiscal year.

Adobe declared that its board has approved a stock buyback plan on Tuesday, April 21st that authorizes the company to buyback $25.00 billion in shares. This buyback authorization authorizes the software company to purchase up to 24.9% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other Adobe news, Director David A. Ricks purchased 10,000 shares of the company’s stock in a transaction on Thursday, June 25th. The shares were bought 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 represents a 130.63% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO Shantanu Narayen sold 75,000 shares of the company’s stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $243.54, for a total value of $18,265,500.00. Following the transaction, the chief executive officer owned 359,538 shares of the company’s stock, valued at approximately $87,561,884.52. This trade represents a 17.26% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 77,091 shares of company stock worth $18,782,773 over the last quarter. 0.20% of the stock is currently owned by company insiders.

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe’s planned acquisition of Topaz Labs could strengthen its generative AI and video/image editing tools, supporting long-term product differentiation and monetization. Adobe (ADBE) to Acquire Topaz Labs
• Positive Sentiment: Another recent analysis highlighted Adobe’s acquisition of Rephrase.AI as a way to bolster generative AI video capabilities for e-commerce, which could broaden Adobe’s addressable market and improve growth prospects. Adobe’s Strategic Acquisition of Rephrase.AI to Bolster Generative AI Video Capabilities for E-commerce
• Neutral Sentiment: Market commentary from Seeking Alpha and other outlets suggested the stock may be oversold or viewed as a comeback candidate, but these were opinion pieces rather than new fundamentals. Adobe: Market Overreaction Creates A Highly Asymmetric Risk-Reward Opportunity
• Neutral Sentiment: Short-interest data showed no meaningful shares outstanding to short, so it does not appear to be adding real trading pressure or changing the investment case.
• Negative Sentiment: Bank of America reportedly downgraded Adobe to Underperform, arguing that AI tools could pressure Adobe’s growth rather than accelerate it, reinforcing investor concerns about competitive disruption. Bank of America Says AI Will Drag Down Adobe Stock
• Negative Sentiment: Additional headlines about users canceling Adobe Acrobat for cheaper alternatives may add to the narrative that pricing pressure and product substitution remain risks for the company.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the company. Stifel Nicolaus reaffirmed a “hold” rating and set a $200.00 price target (down from $350.00) on shares of Adobe in a research note on Friday, June 12th. Dbs Bank downgraded Adobe from a “moderate buy” rating to a “hold” rating in a report on Tuesday, May 19th. Phillip Securities lowered shares of Adobe from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 29th. Jefferies Financial Group decreased their target price on shares of Adobe from $290.00 to $230.00 and set a “hold” rating for the company in a research report on Friday, June 12th. Finally, Oppenheimer restated a “market perform” rating on shares of Adobe in a research note on Friday, June 12th. Six analysts have rated the stock with a Buy rating, twenty-two have assigned a Hold rating and five have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $275.00.

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.