Adobe (NASDAQ:ADBE) Rating Lowered to Hold at Wall Street Zen

Adobe (NASDAQ:ADBE) was downgraded by equities research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Saturday.

A number of other equities analysts have also weighed in on the stock. Oppenheimer reiterated a “market perform” rating on shares of Adobe in a research report on Friday, June 12th. Barclays decreased their price objective on shares of Adobe from $275.00 to $250.00 and set an “equal weight” rating on the stock in a research report on Friday, June 12th. Mizuho lowered their target price on shares of Adobe from $270.00 to $245.00 and set a “neutral” rating on the stock in a research note on Friday, June 12th. DA Davidson dropped their target price on shares of Adobe from $300.00 to $250.00 and set a “buy” rating for the company in a report on Friday, June 12th. Finally, Citigroup reiterated 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 four have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and an average price target of $278.40.

Adobe Price Performance

ADBE stock opened at $219.72 on Friday. Adobe has a twelve month low of $190.12 and a twelve month high of $386.60. 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 market cap of $87.34 billion, a P/E ratio of 12.57, a PEG ratio of 0.77 and a beta of 1.43. The business’s 50-day moving average price is $232.91 and its 200-day moving average price is $265.14.

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 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 company had revenue of $6.62 billion during the quarter, compared to analyst estimates of $6.45 billion. During the same period in the prior year, the firm posted $5.06 EPS. The firm’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. On average, equities research analysts forecast that Adobe will post 19.8 EPS for the current year.

Adobe announced that its Board of Directors has authorized a stock repurchase program on Tuesday, April 21st that allows the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization allows the software company to reacquire up to 24.9% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board believes its stock is undervalued.

Insider Buying and Selling at Adobe

In other Adobe news, CAO Jillian Forusz sold 755 shares of Adobe stock in a transaction on Thursday, April 30th. The shares were sold at an average price of $246.25, for a total value of $185,918.75. Following the completion of the transaction, the chief accounting officer directly owned 3,521 shares of the company’s stock, valued at $867,046.25. This trade represents a 17.66% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Shantanu Narayen sold 75,000 shares of the business’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 completion of the sale, the chief executive officer owned 359,538 shares in the company, 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 77,091 shares of company stock worth $18,782,773 in the last ninety days. Company insiders own 0.20% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in ADBE. Willis Investment Counsel increased its stake in shares of Adobe by 138.9% during the fourth quarter. Willis Investment Counsel now owns 40,715 shares of the software company’s stock valued at $14,250,000 after buying an additional 23,671 shares during the period. Nicholas Company Inc. lifted its stake in Adobe by 7.6% in the fourth quarter. Nicholas Company Inc. now owns 174,626 shares of the software company’s stock worth $61,117,000 after acquiring an additional 12,400 shares during the period. Teacher Retirement System of Texas lifted its stake in Adobe by 13.4% in the fourth quarter. Teacher Retirement System of Texas now owns 215,611 shares of the software company’s stock worth $75,462,000 after acquiring an additional 25,435 shares during the period. Wealthfront Advisers LLC grew its holdings in Adobe by 13.2% during the 4th quarter. Wealthfront Advisers LLC now owns 55,179 shares of the software company’s stock worth $19,312,000 after acquiring an additional 6,426 shares in the last quarter. Finally, True North Advisors LLC increased its position in Adobe by 301.1% during the 4th quarter. True North Advisors LLC now owns 6,493 shares of the software company’s stock valued at $2,273,000 after purchasing an additional 4,874 shares during the period. Hedge funds and other institutional investors own 81.79% of the company’s stock.

Trending Headlines about Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: HSBC upgraded Adobe to Buy and said AI concerns have created an overly pessimistic valuation, helping fuel a rally in the stock. This Adobe analyst is going against the grain by telling investors to buy the stock
• Positive Sentiment: Adobe is expanding its AI push with Firefly Foundry and a broader freemium funnel, which could increase adoption of its creative tools and support longer-term growth. Adobe (ADBE) Launches Firefly Foundry As It Pushes AI Tools To More Users
• Positive Sentiment: An insider reportedly increased his Adobe stake by 130%, signaling internal confidence in the company’s turnaround and AI strategy. 1 Adobe Insider Just Boosted His Stake by 130%. Why He Is Betting Big on ADBE Right Now.
• Neutral Sentiment: Several articles highlighted Adobe as a long-term value or “best SaaS stock” idea, but these were largely opinion pieces rather than new fundamental updates. Why Adobe Systems (ADBE) is a Top Value Stock for the Long-Term
• Neutral Sentiment: Commentary from analysts and investors continued to debate whether Adobe’s growth is slowing or whether the market is underestimating its resilience against AI disruption. Analyst Sees Slower Growth Tempering Outlook for Adobe (ADBE)
• Negative Sentiment: Phillip Securities downgraded Adobe to Neutral from Buy and cut its price target sharply, reflecting concern that growth may slow even as legacy software remains durable. Analyst Sees Slower Growth Tempering Outlook for Adobe (ADBE)

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.