Arrowstreet Capital Limited Partnership Grows Stock Holdings in Adobe Inc. $ADBE

Arrowstreet Capital Limited Partnership raised its holdings in shares of Adobe Inc. (NASDAQ:ADBE) by 9.1% in the 1st quarter, Holdings Channel.com reports. The firm owned 6,792,275 shares of the software company’s stock after buying an additional 563,772 shares during the quarter. Adobe comprises 0.9% of Arrowstreet Capital Limited Partnership’s portfolio, making the stock its 16th largest holding. Arrowstreet Capital Limited Partnership’s holdings in Adobe were worth $1,651,066,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also made changes to their positions in the company. SWAN Capital LLC boosted 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 purchasing an additional 31 shares during the period. Logan Capital Management Inc. raised its holdings in Adobe by 0.3% during the 3rd quarter. Logan Capital Management Inc. now owns 9,789 shares of the software company’s stock valued at $3,453,000 after buying an additional 32 shares during the period. Marquette Asset Management LLC lifted its position in Adobe by 72.3% in the fourth quarter. Marquette Asset Management LLC now owns 81 shares of the software company’s stock worth $28,000 after buying an additional 34 shares during the last quarter. Vista Capital Partners Inc. lifted its position in Adobe by 5.8% in the second quarter. Vista Capital Partners Inc. now owns 624 shares of the software company’s stock worth $241,000 after buying an additional 34 shares during the last quarter. Finally, Nova Wealth Management Inc. boosted its stake in Adobe by 5.4% during the fourth quarter. Nova Wealth Management Inc. now owns 683 shares of the software company’s stock worth $239,000 after buying an additional 35 shares during the period. 81.79% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Wall Street Zen cut shares of Adobe from a “buy” rating to a “hold” rating in a research report on Saturday, July 4th. Bank of America reaffirmed an “underperform” rating and set a $190.00 price target on shares of Adobe in a research note on Tuesday, July 7th. Summit Redstone set a $350.00 price target on shares of Adobe in a report on Friday, April 17th. Weiss Ratings reissued a “sell (d+)” rating on shares of Adobe in a research report on Wednesday, June 3rd. Finally, Wells Fargo & Company decreased their price objective on shares of Adobe from $330.00 to $250.00 and set an “overweight” rating for the company in a research note on Friday, June 12th. Seven equities research analysts have rated the stock with a Buy rating, twenty-one have issued a Hold rating and six have issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $271.30.

Adobe Stock Down 2.8%

NASDAQ:ADBE opened at $212.17 on Friday. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.75 and a quick ratio of 0.75. Adobe Inc. has a 1-year low of $190.12 and a 1-year high of $376.16. The company has a 50-day moving average of $227.23 and a 200 day moving average of $252.03. The firm has a market cap of $84.34 billion, a PE ratio of 12.14, a price-to-earnings-growth ratio of 0.73 and a beta of 1.43.

Adobe (NASDAQ:ADBE) last posted its quarterly earnings results on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, beating the consensus estimate 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 previous year, the business posted $5.06 EPS. The company’s quarterly revenue 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. As a group, research analysts anticipate that Adobe Inc. will post 19.81 EPS for the current fiscal year.

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

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Negative Sentiment: Morgan Stanley downgraded Adobe to underweight from equal-weight and cut its price target to $240 from $365, citing concerns that Adobe’s move toward free basic services could pressure subscription revenue, along with leadership uncertainty and other strategic shifts. Why Adobe (ADBE) Shares Are Sliding Today
• Negative Sentiment: Zacks said Adobe’s large pullback from its 52-week high reflects investor doubts about AI monetization, slower near-term ARR growth, and ongoing leadership changes despite strong product adoption. Adobe Drops 40% From 52-Week High: Buy, Sell or Hold the Stock?
• Negative Sentiment: Adobe’s stock also underperformed peers recently, reinforcing the view that sentiment remains weak relative to other software names. Adobe Inc. stock underperforms Wednesday when compared to competitors
• Neutral Sentiment: CLSA reportedly initiated coverage with a moderate buy rating, which offers a counterpoint to the bearish calls but has not yet offset the broader negative sentiment. Adobe (NASDAQ:ADBE) Earns Moderate Buy Rating from Analysts at CLSA
• Neutral Sentiment: Insider activity was mixed across the tech sector, with one note highlighting that Eli Lilly CEO David Ricks bought Adobe shares, though this is not enough on its own to change the near-term narrative. Insider Moves Are Sending Mixed Signals Across the Tech Sector

Insider Buying and Selling

In related news, Director David A. Ricks purchased 10,000 shares of the business’s stock in a transaction dated Thursday, June 25th. The shares were acquired at an average cost of $194.51 per share, for a total transaction of $1,945,100.00. Following the acquisition, the director owned 17,655 shares of the company’s stock, valued at $3,434,074.05. The trade was a 130.63% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Shantanu Narayen sold 75,000 shares of Adobe stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $243.54, for a total value of $18,265,500.00. Following the completion of the transaction, the chief executive officer owned 359,538 shares in the company, valued at $87,561,884.52. This represents a 17.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.20% of the stock is currently owned by insiders.

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.