Aristotle Capital Management LLC Decreases Stake in Adobe Inc. $ADBE

Aristotle Capital Management LLC lessened its holdings in shares of Adobe Inc. (NASDAQ:ADBE) by 5.1% during the first quarter, HoldingsChannel reports. The fund owned 2,169,723 shares of the software company’s stock after selling 117,450 shares during the period. Aristotle Capital Management LLC’s holdings in Adobe were worth $527,432,000 at the end of the most recent reporting period.

Other large investors have also recently bought and sold shares of the company. State Street Corp boosted its position in shares of Adobe by 1.7% during the 3rd quarter. State Street Corp now owns 20,632,009 shares of the software company’s stock worth $7,277,941,000 after purchasing an additional 352,448 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of Adobe by 3.7% in the 4th quarter. Geode Capital Management LLC now owns 11,531,678 shares of the software company’s stock valued at $4,027,170,000 after purchasing an additional 414,049 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in shares of Adobe by 9.1% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 6,792,275 shares of the software company’s stock valued at $1,651,066,000 after purchasing an additional 563,772 shares in the last quarter. Norges Bank acquired a new stake in shares of Adobe in the fourth quarter valued at about $2,275,165,000. Finally, Invesco Ltd. boosted its holdings in Adobe by 6.2% during the fourth quarter. Invesco Ltd. now owns 5,119,025 shares of the software company’s stock worth $1,791,607,000 after buying an additional 297,337 shares in the last quarter. Hedge funds and other institutional investors own 81.79% of the company’s stock.

Wall Street Analysts Forecast Growth

ADBE has been the topic of several recent analyst reports. Summit Redstone set a $350.00 target price on shares of Adobe in a research report on Friday, April 17th. Jefferies Financial Group decreased their price target on Adobe from $290.00 to $230.00 and set a “hold” rating on the stock in a research note on Friday, June 12th. Robert W. Baird lowered their price target on Adobe from $270.00 to $230.00 and set a “neutral” rating on the stock in a report on Friday, June 12th. Citizens Jmp reaffirmed a “market perform” rating on shares of Adobe in a research note on Friday, June 12th. Finally, Wall Street Zen cut Adobe from a “buy” rating to a “hold” rating in a report on Saturday, July 4th. Seven research analysts have rated the stock with a Buy rating, twenty-one have assigned a Hold rating and six have assigned a Sell rating to the company’s stock. According to data from MarketBeat, Adobe has a consensus rating of “Hold” and a consensus price target of $271.30.

Adobe Trading Up 6.1%

NASDAQ ADBE opened at $225.11 on Friday. The company has a market cap of $89.48 billion, a P/E ratio of 12.88, a P/E/G ratio of 0.71 and a beta of 1.43. Adobe Inc. has a 12 month low of $190.12 and a 12 month high of $376.16. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.75 and a quick ratio of 0.75. The company has a 50-day moving average of $226.78 and a 200-day moving average of $251.84.

Adobe (NASDAQ:ADBE) last issued its quarterly 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 during the quarter, compared to analyst estimates of $6.45 billion. Adobe had a net margin of 28.69% and a return on equity of 65.11%. Adobe’s revenue for the quarter was up 12.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted $5.06 earnings per share. 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, equities analysts predict that Adobe Inc. will post 19.81 earnings per share for the current year.

Adobe declared that its board has approved a stock buyback plan on Tuesday, April 21st that allows the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization allows 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 believes its stock is undervalued.

Insider Transactions at Adobe

In related news, CAO Jillian Forusz sold 755 shares of Adobe stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $246.25, for a total value of $185,918.75. Following the transaction, the chief accounting officer owned 3,521 shares in the company, valued at approximately $867,046.25. This trade represents a 17.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Shantanu Narayen sold 75,000 shares of the business’s stock in a transaction dated 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 sale, the chief executive officer directly 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 position. The disclosure for this sale is available in the SEC filing. Insiders own 0.20% of the company’s stock.

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: TipRanks said Adobe looks attractive despite ongoing AI adoption worries, suggesting investors may be focusing on valuation and long-term fundamentals rather than short-term AI fears. Adobe (ADBE) Stock Looks Attractive Even as AI Worries Persist
• Positive Sentiment: CLSA reportedly initiated or reiterated a Moderate Buy rating on Adobe, which can support sentiment by signaling analyst confidence in the stock’s outlook. Adobe (NASDAQ:ADBE) Earns Moderate Buy Rating from Analysts at CLSA
• Positive Sentiment: Recent coverage highlighted Adobe as a trending stock, which may reflect renewed investor attention and interest ahead of future catalysts. Here is What to Know Beyond Why Adobe Inc. (ADBE) is a Trending Stock
• Neutral Sentiment: One report said short interest in Adobe was unchanged at zero shares, so it does not indicate meaningful bearish pressure or a change in trading sentiment.
• Neutral Sentiment: A MarketWatch note said Adobe underperformed some peers on Wednesday, but this looks like a relative-performance observation rather than a major company-specific catalyst. Adobe Inc. stock underperforms Wednesday when compared to competitors
• Negative Sentiment: The main headwind remains investor concern about AI adoption, which could be weighing on Adobe’s near-term multiple even as some analysts argue the stock looks attractive.

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.