Adobe Inc. (NASDAQ:ADBE) Receives Average Rating of “Hold” from Brokerages

Shares of Adobe Inc. (NASDAQ:ADBE) have earned a consensus rating of “Hold” from the thirty-three analysts that are presently covering the stock, MarketBeat reports. Five analysts have rated the stock with a sell rating, twenty-two have given a hold rating and six have given a buy rating to the company. The average 12 month price objective among brokers that have covered the stock in the last year is $275.00.

Several research firms have issued reports on ADBE. Piper Sandler cut their price target on shares of Adobe from $280.00 to $240.00 and set a “neutral” rating on the stock in a report on Friday, June 12th. KeyCorp decreased their price objective on Adobe from $235.00 to $195.00 and set an “underweight” rating for the company in a report on Friday, June 12th. Mizuho lowered their price objective on Adobe from $270.00 to $245.00 and set a “neutral” rating for the company in a research report on Friday, June 12th. Citigroup restated a “market perform” rating on shares of Adobe in a research note on Friday, June 12th. Finally, Wells Fargo & Company reduced their target price on Adobe from $330.00 to $250.00 and set an “overweight” rating on the stock in a research report on Friday, June 12th.

Adobe Price Performance

NASDAQ:ADBE opened at $223.64 on Monday. The company’s 50-day simple moving average is $230.84 and its 200-day simple moving average is $259.85. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.75 and a current ratio of 0.75. Adobe has a fifty-two week low of $190.12 and a fifty-two week high of $376.16. The stock has a market capitalization of $88.90 billion, a P/E ratio of 12.79, a P/E/G ratio of 0.75 and a beta of 1.43.

Adobe (NASDAQ:ADBE) last posted its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 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 firm 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. Adobe’s revenue 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. On average, equities analysts anticipate that Adobe will post 19.8 earnings per share for the current fiscal 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 shares. This repurchase authorization allows the software company to reacquire up to 24.9% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s board believes its shares are undervalued.

Insiders Place Their Bets

In other Adobe news, Director David A. Ricks purchased 10,000 shares of the company’s stock in a transaction dated Thursday, June 25th. The shares were acquired at an average price of $194.51 per share, for a total transaction of $1,945,100.00. Following the completion of the purchase, the director owned 17,655 shares of the company’s stock, valued at approximately $3,434,074.05. The trade was a 130.63% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Daniel Durn sold 1,336 shares of the company’s stock in a transaction dated 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 in the company, valued at approximately $10,623,440.66. This trade represents a 3.02% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 77,091 shares of company stock worth $18,782,773 over the last ninety days. Insiders own 0.20% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Brighton Jones LLC boosted its holdings in shares of Adobe by 2.1% in the 4th quarter. Brighton Jones LLC now owns 8,068 shares of the software company’s stock valued at $3,588,000 after acquiring an additional 167 shares during the last quarter. Sivia Capital Partners LLC raised its holdings in shares of Adobe by 25.5% during the second quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company’s stock worth $926,000 after purchasing an additional 486 shares during the last quarter. United Bank lifted its position in Adobe by 12.8% during the second quarter. United Bank now owns 3,773 shares of the software company’s stock valued at $1,460,000 after purchasing an additional 428 shares during the period. Schnieders Capital Management LLC. lifted its position in Adobe by 7.8% during the second quarter. Schnieders Capital Management LLC. now owns 2,630 shares of the software company’s stock valued at $1,017,000 after purchasing an additional 190 shares during the period. Finally, Gamco Investors INC. ET AL boosted its holdings in Adobe by 190.6% in the second quarter. Gamco Investors INC. ET AL now owns 2,764 shares of the software company’s stock valued at $1,069,000 after purchasing an additional 1,813 shares during the last quarter. Hedge funds and other institutional investors own 81.79% of the company’s stock.

Key Stories Impacting Adobe

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.

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.