Hills Bank & Trust Co cut its holdings in Adobe Inc. (NASDAQ:ADBE – Free Report) by 48.4% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 3,990 shares of the software company’s stock after selling 3,744 shares during the quarter. Hills Bank & Trust Co’s holdings in Adobe were worth $1,396,000 at the end of the most recent quarter.
Other institutional investors and hedge funds have also recently modified their holdings of the company. Measured Wealth Private Client Group LLC purchased a new position in shares of Adobe in the third quarter valued at $26,000. Western Pacific Wealth Management LP purchased a new position in shares of Adobe in the fourth quarter valued at $26,000. Caitlin John LLC purchased a new position in shares of Adobe in the third quarter valued at $28,000. Beacon Financial Strategies CORP purchased a new position in shares of Adobe in the fourth quarter valued at $28,000. Finally, KERR FINANCIAL PLANNING Corp purchased a new position in Adobe during the third quarter worth $27,000. 81.79% of the stock is owned by hedge funds and other institutional investors.
Wall Street Analyst Weigh In
Several research analysts have commented on ADBE shares. Citigroup reaffirmed a “neutral” rating on shares of Adobe in a research note on Friday, April 10th. 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. KeyCorp dropped their price objective on shares of Adobe from $310.00 to $235.00 and set an “underweight” rating for the company in a research note on Friday, March 13th. William Blair lowered shares of Adobe from an “outperform” rating to a “market perform” rating in a research note on Thursday, March 26th. Finally, Argus reaffirmed a “hold” rating on shares of Adobe in a research note on Monday, March 16th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, sixteen have assigned a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $338.15.
Insider Activity
In other news, CEO Shantanu Narayen sold 75,000 shares of the business’s stock in a transaction on Tuesday, April 28th. The shares were 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 directly owned 359,538 shares of the company’s stock, valued at approximately $87,561,884.52. The trade was a 17.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Jillian Forusz sold 755 shares of the business’s stock in a transaction on Thursday, April 30th. The shares were sold at an average price of $246.25, for a total transaction of $185,918.75. Following the sale, the chief accounting officer directly owned 3,521 shares of the company’s stock, valued at $867,046.25. This represents a 17.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 77,091 shares of company stock valued at $18,782,773. 0.20% of the stock is currently owned by company insiders.
Adobe Stock Up 4.5%
Shares of ADBE opened at $247.60 on Friday. The firm has a market capitalization of $100.08 billion, a P/E ratio of 14.42, a P/E/G ratio of 0.92 and a beta of 1.42. Adobe Inc. has a 12-month low of $224.13 and a 12-month high of $422.95. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.47. The firm has a fifty day moving average price of $247.93 and a 200-day moving average price of $290.83.
Adobe (NASDAQ:ADBE – Get Free Report) last issued its earnings results 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. The firm had revenue of $6.40 billion during the quarter, compared to analyst estimates of $6.28 billion. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The business’s revenue was up 12.0% on a year-over-year basis. During the same period in the previous year, the firm earned $5.08 earnings per share. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. Equities research analysts expect that Adobe Inc. will post 19.14 earnings per share for the current year.
Adobe announced that its Board of Directors has initiated a share buyback plan on Tuesday, April 21st that authorizes the company to buyback $25.00 billion in shares. This buyback authorization authorizes the software company to purchase up to 24.9% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its shares are undervalued.
Key Adobe News
Here are the key news stories impacting Adobe this week:
- Positive Sentiment: Social media and market commentary point to a sector rotation from semiconductors into software, with Adobe among the leaders, as traders buy into a rebound for established SaaS and creative-tools names. Adobe Stock (ADBE) Opinions on Sector Rotation to Software
- Positive Sentiment: Analysts and investors highlighted Adobe as potentially undervalued after months of pressure, citing strong profitability and AI features such as Firefly and Acrobat AI Assistant as reasons the company can keep growing despite AI-related fears. Is Generative AI Expanding Adobe’s Digital Media Opportunity?
- Neutral Sentiment: Coverage around Adobe’s latest AI product push, including the new Acrobat productivity agent, reinforces the company’s strategy to embed generative AI across its workflow tools, which could support longer-term revenue growth. Adobe (ADBE) Expands Its Agentic AI Push With New Acrobat Productivity Agent
- Negative Sentiment: Some recent articles and reviews emphasize competitive pressure and user dissatisfaction with Adobe’s products, while insider selling and heavy hedge fund trimming may keep sentiment cautious even after the rebound. Adobe was overkill for the editing I actually do, and that’s what finally made me leave
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.
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