Adobe Inc. $ADBE Stock Position Decreased by Capital World Investors

Capital World Investors lowered its stake in Adobe Inc. (NASDAQ:ADBE) by 38.1% in the third quarter, Holdings Channel.com reports. The institutional investor owned 2,963,299 shares of the software company’s stock after selling 1,820,992 shares during the quarter. Capital World Investors’ holdings in Adobe were worth $1,045,304,000 as of its most recent SEC filing.

Other hedge funds have also recently added to or reduced their stakes in the company. LSV Asset Management lifted its position in Adobe by 350.0% in the second quarter. LSV Asset Management now owns 72 shares of the software company’s stock worth $28,000 after purchasing an additional 56 shares during the period. Caitlin John LLC bought a new position in Adobe in the third quarter valued at about $28,000. Horizon Financial Services LLC boosted its stake in Adobe by 4,000.0% in the second quarter. Horizon Financial Services LLC now owns 82 shares of the software company’s stock valued at $32,000 after acquiring an additional 80 shares during the last quarter. Total Investment Management Inc. acquired a new position in shares of Adobe during the 2nd quarter worth about $35,000. Finally, Heartwood Wealth Advisors LLC bought a new stake in shares of Adobe in the 3rd quarter valued at $35,000. Institutional investors own 81.79% of the company’s stock.

Adobe News Summary

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe launched conversational AI editing in Photoshop and smarter Firefly image‑editing tools (public beta), enhancing product differentiation and upsell potential for Creative Cloud customers. Read More.
• Positive Sentiment: Adobe expanded its MLB partnership to deliver AI‑driven fan experiences — a commercial reference point that can help sell Adobe Experience Cloud and related services to large brands. Read More.
• Neutral Sentiment: Market focus on Q1 results (reporting March 12) is raising volatility — options traders expect a sizeable move and several earnings previews highlight that revenue/EPS beats or a cautious guide could swing the stock either way. Read More.
• Negative Sentiment: Multiple analysts trimmed targets and tone: TD Cowen cut its PT to $325 (hold) and Citigroup reduced its target as well — analyst downgrades are weighing on sentiment and were cited as a near‑term catalyst for the selloff. Read More.
• Negative Sentiment: Short interest rose in February to ~14.3M shares (about 3.5% of shares outstanding, ~2.9 days to cover) — higher short exposure increases downside pressure and volatility into earnings. (Data reported in market notices.)
• Negative Sentiment: Emerging competitors and open‑source AI initiatives (e.g., Veeso, Nvidia’s NemoClaw) highlight intensifying competition in AI‑driven design tools, which could pressure growth assumptions if Adobe’s commercial traction lags. Read More. and Read More.

Adobe Stock Performance

Shares of ADBE stock opened at $275.13 on Wednesday. Adobe Inc. has a 12 month low of $244.28 and a 12 month high of $443.90. The firm’s 50 day moving average is $288.69 and its 200 day moving average is $324.75. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.53. The stock has a market capitalization of $112.94 billion, a P/E ratio of 16.47, a PEG ratio of 1.11 and a beta of 1.53.

Adobe (NASDAQ:ADBE) last released its quarterly earnings results on Wednesday, December 10th. The software company reported $5.50 earnings per share for the quarter, beating analysts’ consensus estimates of $5.40 by $0.10. The business had revenue of $6.19 billion for the quarter, compared to the consensus estimate of $6.11 billion. Adobe had a return on equity of 61.28% and a net margin of 30.00%.The company’s revenue for the quarter was up 10.5% on a year-over-year basis. During the same quarter last year, the business posted $4.81 earnings per share. On average, sell-side analysts anticipate that Adobe Inc. will post 16.65 earnings per share for the current year.

Wall Street Analysts Forecast Growth

ADBE has been the topic of a number of recent research reports. Jefferies Financial Group lowered their price objective on shares of Adobe from $400.00 to $290.00 and set a “hold” rating on the stock in a report on Monday, February 23rd. Wall Street Zen raised shares of Adobe from a “hold” rating to a “buy” rating in a report on Saturday. Weiss Ratings downgraded shares of Adobe from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday. Stifel Nicolaus reduced their price target on shares of Adobe from $480.00 to $450.00 and set a “buy” rating on the stock in a research note on Tuesday, December 9th. Finally, BMO Capital Markets cut Adobe from an “outperform” rating to a “market perform” rating and reduced their price target for the stock from $400.00 to $375.00 in a report on Friday, January 9th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, eleven have issued a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $383.08.

Insider Buying and Selling

In other Adobe news, CFO Daniel Durn sold 1,646 shares of the firm’s stock in a transaction dated Tuesday, January 27th. The shares were sold at an average price of $294.85, for a total value of $485,323.10. Following the completion of the sale, the chief financial officer directly owned 41,995 shares in the company, valued at $12,382,225.75. This trade represents a 3.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. 0.20% of the stock is owned by insiders.

Adobe 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.