Cullinan Associates Inc. Reduces Stake in Adobe Inc. $ADBE

Cullinan Associates Inc. reduced its stake in shares of Adobe Inc. (NASDAQ:ADBE) by 32.7% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 5,820 shares of the software company’s stock after selling 2,830 shares during the quarter. Cullinan Associates Inc.’s holdings in Adobe were worth $1,415,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also made changes to their positions in the company. SWAN Capital LLC grew its stake in 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 in the last quarter. Logan Capital Management Inc. raised its position 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 in the last quarter. Peoples Bank KS lifted its position in shares of Adobe by 1.6% during the fourth quarter. Peoples Bank KS now owns 2,041 shares of the software company’s stock valued at $714,000 after buying an additional 33 shares during the last quarter. Rosenberg Matthew Hamilton lifted its position in Adobe by 16.1% during the fourth quarter. Rosenberg Matthew Hamilton now owns 245 shares of the software company’s stock valued at $86,000 after acquiring an additional 34 shares during the last quarter. Finally, Marquette Asset Management LLC boosted its position in shares of Adobe by 72.3% in the 4th quarter. Marquette Asset Management LLC now owns 81 shares of the software company’s stock worth $28,000 after purchasing an additional 34 shares in the last quarter. Hedge funds and other institutional investors own 81.79% of the company’s stock.

Adobe Price Performance

ADBE traded up $0.99 during midday trading on Friday, hitting $223.64. 3,205,588 shares of the company traded hands, compared to its average volume of 7,842,919. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 0.42. Adobe Inc. has a 52-week low of $190.12 and a 52-week high of $376.16. The company has a market capitalization of $88.90 billion, a price-to-earnings ratio of 12.79, a PEG ratio of 0.75 and a beta of 1.43. The business has a 50 day simple moving average of $230.84 and a two-hundred day simple moving average of $260.53.

Adobe (NASDAQ:ADBE) last released its earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share (EPS) 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 business had revenue of $6.62 billion during the quarter, compared to analyst estimates of $6.45 billion. During the same quarter in the prior year, the firm earned $5.06 earnings per share. 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, equities analysts forecast that Adobe Inc. will post 19.8 earnings per share for the current fiscal year.

Adobe declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, April 21st that permits the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization permits the software company to repurchase up to 24.9% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board believes its stock is undervalued.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the stock. TD Cowen lowered their price objective on shares of Adobe from $310.00 to $285.00 and set a “hold” rating for the company in a research note on Monday, June 8th. Dbs Bank cut shares of Adobe from a “moderate buy” rating to a “hold” rating in a research note on Tuesday, May 19th. The Goldman Sachs Group dropped their price objective on shares of Adobe from $220.00 to $190.00 and set a “sell” rating on the stock in a report on Friday, June 12th. Freedom Capital lowered shares of Adobe from a “strong-buy” rating to a “hold” rating in a research note on Friday, June 12th. Finally, Oppenheimer reissued a “market perform” rating on shares of Adobe in a report on Friday, June 12th. Six research analysts have rated the stock with a Buy rating, twenty-two have given a Hold rating and five have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $275.00.

Adobe News Roundup

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.

Insider Transactions at Adobe

In other Adobe news, CEO Shantanu Narayen sold 75,000 shares of the firm’s stock in a transaction dated 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 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 sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Daniel Durn sold 1,336 shares of the firm’s stock in a transaction dated 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. Over the last quarter, insiders have sold 77,091 shares of company stock valued at $18,782,773. Insiders own 0.20% of the company’s stock.

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.