Adobe (NASDAQ:ADBE) Hits New 1-Year Low – What’s Next?

Adobe Inc. (NASDAQ:ADBE)’s stock price reached a new 52-week low during trading on Thursday . The stock traded as low as $228.39 and last traded at $229.47, with a volume of 544496 shares changing hands. The stock had previously closed at $239.31.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the stock. Wells Fargo & Company cut their target price on shares of Adobe from $420.00 to $405.00 and set an “overweight” rating for the company in a research note on Monday, March 9th. TD Cowen cut their target price on shares of Adobe from $400.00 to $325.00 and set a “hold” rating for the company in a research note on Tuesday, March 10th. The Goldman Sachs Group dropped their price objective on shares of Adobe from $290.00 to $220.00 and set a “sell” rating for the company in a research note on Friday, March 13th. Argus restated a “hold” rating on shares of Adobe in a research note on Monday, March 16th. Finally, Morgan Stanley dropped their price objective on shares of Adobe from $425.00 to $365.00 and set an “equal weight” rating for the company in a research note on Friday, March 13th. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, fourteen have assigned a Hold rating and five have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $343.88.

Adobe Trading Down 3.4%

The company has a market cap of $93.48 billion, a price-to-earnings ratio of 13.43, a PEG ratio of 0.95 and a beta of 1.52. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.91 and a current ratio of 0.91. The business’s 50 day moving average price is $259.42 and its 200-day moving average price is $309.09.

Adobe (NASDAQ:ADBE) last announced its quarterly earnings data on Thursday, March 12th. The software company reported $6.06 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.87 by $0.19. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The company had revenue of $6.40 billion during the quarter, compared to analysts’ expectations of $6.28 billion. During the same quarter in the prior year, the company posted $5.08 EPS. The business’s revenue was up 12.0% on a year-over-year basis. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. On average, research analysts forecast that Adobe Inc. will post 16.65 EPS for the current year.

Insider Activity

In related news, CFO Daniel Durn sold 1,646 shares of the 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 completion of the sale, the chief financial officer owned 41,995 shares in the company, valued at $12,382,225.75. This trade represents a 3.77% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 0.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Adobe

A number of hedge funds have recently made changes to their positions in ADBE. Norges Bank acquired a new stake in shares of Adobe during the 4th quarter worth about $2,275,165,000. Arrowstreet Capital Limited Partnership increased its position in shares of Adobe by 53.3% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company’s stock worth $1,981,448,000 after purchasing an additional 1,952,994 shares in the last quarter. Dodge & Cox increased its position in shares of Adobe by 8,006.6% during the 3rd quarter. Dodge & Cox now owns 1,593,506 shares of the software company’s stock worth $562,109,000 after purchasing an additional 1,573,849 shares in the last quarter. AQR Capital Management LLC increased its position in shares of Adobe by 55.2% during the 3rd quarter. AQR Capital Management LLC now owns 2,587,399 shares of the software company’s stock worth $912,705,000 after purchasing an additional 920,353 shares in the last quarter. Finally, Amundi increased its position in shares of Adobe by 17.9% during the 3rd quarter. Amundi now owns 4,888,283 shares of the software company’s stock worth $1,711,583,000 after purchasing an additional 742,646 shares in the last quarter. Institutional investors and hedge funds own 81.79% of the company’s stock.

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.