Capital Research Global Investors Decreases Stock Holdings in Adobe Inc. $ADBE

Capital Research Global Investors lowered its position in Adobe Inc. (NASDAQ:ADBE) by 30.3% during the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 899,146 shares of the software company’s stock after selling 391,212 shares during the period. Capital Research Global Investors’ holdings in Adobe were worth $317,174,000 as of its most recent SEC filing.

Several other hedge funds have also recently bought and sold shares of the company. LSV Asset Management grew its holdings in Adobe by 350.0% in the second quarter. LSV Asset Management now owns 72 shares of the software company’s stock valued at $28,000 after purchasing an additional 56 shares during the last quarter. Caitlin John LLC acquired a new position in shares of Adobe during the 3rd quarter worth $28,000. Horizon Financial Services LLC boosted its position in shares of Adobe by 4,000.0% in the 2nd quarter. Horizon Financial Services LLC now owns 82 shares of the software company’s stock worth $32,000 after buying an additional 80 shares in the last quarter. Total Investment Management Inc. purchased a new stake in shares of Adobe in the 2nd quarter worth about $35,000. Finally, Howard Hughes Medical Institute acquired a new stake in Adobe in the 2nd quarter valued at about $36,000. 81.79% of the stock is owned by hedge funds and other institutional investors.

Adobe Price Performance

ADBE opened at $275.13 on Wednesday. The company has a 50-day moving average of $288.69 and a 200-day moving average of $324.75. Adobe Inc. has a 1-year low of $244.28 and a 1-year high of $443.90. The company 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. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.00 and a current ratio of 1.00.

Adobe (NASDAQ:ADBE) last issued its earnings results on Wednesday, December 10th. The software company reported $5.50 EPS for the quarter, beating analysts’ consensus estimates of $5.40 by $0.10. Adobe had a return on equity of 61.28% and a net margin of 30.00%.The company had revenue of $6.19 billion during the quarter, compared to the consensus estimate of $6.11 billion. During the same period in the previous year, the firm posted $4.81 earnings per share. Adobe’s quarterly revenue was up 10.5% compared to the same quarter last year. Equities analysts expect that Adobe Inc. will post 16.65 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Daniel Durn sold 1,646 shares of Adobe stock in a transaction dated Tuesday, January 27th. The shares were sold at an average price of $294.85, for a total transaction of $485,323.10. Following the sale, the chief financial officer directly owned 41,995 shares in the company, valued at $12,382,225.75. The trade was a 3.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.20% of the stock is owned by insiders.

Analysts Set New Price Targets

A number of equities analysts have issued reports on ADBE shares. Robert W. Baird set a $350.00 target price on shares of Adobe in a research report on Wednesday, January 14th. Wolfe Research dropped their price objective on shares of Adobe from $450.00 to $440.00 and set an “outperform” rating for the company in a research note on Thursday, December 11th. The Goldman Sachs Group started coverage on Adobe in a research report on Monday, January 12th. They set a “sell” rating and a $290.00 price objective for the company. Mizuho dropped their price target on Adobe from $410.00 to $390.00 and set an “outperform” rating for the company in a research report on Thursday, November 20th. Finally, HSBC set a $302.00 price objective on Adobe in a research report on Friday, February 13th. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, eleven have assigned a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $383.08.

Key Stories Impacting Adobe

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 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.