Adobe (NASDAQ:ADBE) Price Target Cut to $228.00 by Analysts at Citigroup

Adobe (NASDAQ:ADBE) had its price target trimmed by Citigroup from $264.00 to $228.00 in a report issued on Friday morning,Benzinga reports. The brokerage currently has a neutral rating on the software company’s stock.

A number of other research firms have also issued reports on ADBE. Mizuho cut their price target on shares of Adobe from $270.00 to $245.00 and set a “neutral” rating on the stock in a report on Friday. Wall Street Zen downgraded shares of Adobe from a “buy” rating to a “hold” rating in a research report on Saturday, May 2nd. BMO Capital Markets decreased their price objective on shares of Adobe from $285.00 to $230.00 and set a “market perform” rating for the company in a report on Friday. Weiss Ratings reiterated a “sell (d+)” rating on shares of Adobe in a research note on Wednesday, June 3rd. Finally, Wolfe Research cut shares of Adobe from an “outperform” rating to a “peer perform” rating in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, twenty have given a Hold rating and five have issued a Sell rating to the company. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $278.16.

Adobe Stock Down 6.8%

NASDAQ ADBE opened at $204.02 on Friday. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.91 and a quick ratio of 0.91. The company’s 50 day simple moving average is $244.54 and its 200 day simple moving average is $278.61. Adobe has a 12 month low of $196.90 and a 12 month high of $405.00. The company has a market capitalization of $82.46 billion, a P/E ratio of 11.67, a PEG ratio of 0.85 and a beta of 1.42.

Adobe (NASDAQ:ADBE) last released its earnings results on Thursday, June 11th. The software company reported $5.96 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 64.99%. The business had revenue of $6.62 billion for the quarter, compared to the consensus estimate of $6.45 billion. During the same period in the previous year, the firm earned $5.06 EPS. The business’s revenue for the quarter was up 12.7% on a year-over-year basis. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. Equities research analysts expect that Adobe will post 19.14 earnings per share for the current fiscal year.

Adobe announced that its Board of Directors has approved a share repurchase program on Tuesday, April 21st that authorizes the company to buyback $25.00 billion in outstanding shares. This buyback authorization authorizes the software company to reacquire 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 shares are undervalued.

Insider Activity

In related news, CFO Daniel Durn sold 1,336 shares of Adobe stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $248.02, for a total transaction of $331,354.72. Following the transaction, the chief financial officer owned 42,833 shares of the company’s stock, valued at $10,623,440.66. This trade represents a 3.02% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Shantanu Narayen sold 75,000 shares of the firm’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 transaction of $18,265,500.00. Following the sale, the chief executive officer owned 359,538 shares in the company, valued at $87,561,884.52. This trade represents a 17.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 77,091 shares of company stock valued at $18,782,773. 0.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Adobe

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Norges Bank acquired a new position in shares of Adobe in the fourth quarter valued at approximately $2,275,165,000. Arrowstreet Capital Limited Partnership increased its stake in shares of Adobe by 53.3% in the third quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company’s stock valued at $1,981,448,000 after buying an additional 1,952,994 shares during the period. Dodge & Cox increased its stake in shares of Adobe by 8,006.6% in the third quarter. Dodge & Cox now owns 1,593,506 shares of the software company’s stock valued at $562,109,000 after buying an additional 1,573,849 shares during the period. AQR Capital Management LLC increased its stake in shares of Adobe by 55.2% in the third quarter. AQR Capital Management LLC now owns 2,587,399 shares of the software company’s stock valued at $912,705,000 after buying an additional 920,353 shares during the period. Finally, Amundi increased its position in Adobe by 17.9% during the 3rd quarter. Amundi now owns 4,888,283 shares of the software company’s stock valued at $1,711,583,000 after purchasing an additional 742,646 shares during the period. 81.79% of the stock is owned by institutional investors.

Adobe News Summary

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe reported record Q2 revenue of $6.62 billion and EPS of $5.96, both above expectations, while also raising full-year revenue and earnings guidance. The company said AI-driven demand and stronger subscription spending supported results. Adobe Reports Record Q2 Results
• Positive Sentiment: Management highlighted accelerating adoption of Adobe’s AI tools, with AI-first annual recurring revenue topping $500 million, which supports the long-term growth case. Adobe Q2 Earnings Beat Estimates, Revenues Up Y/Y, Shares Fall
• Neutral Sentiment: Despite the beat, Adobe signaled a strategic shift toward freemium AI products and prioritizing user growth over immediate monetization, which adds uncertainty around near-term ARR growth. ADBE Q2 Earnings Call Centers on Freemium AI Push, Raised Outlook
• Negative Sentiment: Investors were rattled by the sudden departure of CFO Dan Durn, which adds to leadership uncertainty while Adobe is also in the middle of a CEO succession process. Adobe raises annual revenue forecast, CFO to exit
• Negative Sentiment: Wall Street reacted with multiple price-target cuts and downgrades, reflecting concerns that Adobe’s core growth may be decelerating and that AI monetization is still not proven. Leadership Exits, Decelerating Core Growth Cloud Adobe’s Earnings Beat

Adobe Company 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.