Diamond Hill Capital Management Inc. Sells 36,294 Shares of Adobe Inc. $ADBE

Diamond Hill Capital Management Inc. decreased its stake in shares of Adobe Inc. (NASDAQ:ADBE) by 3.5% during the 4th quarter, Holdings Channel reports. The firm owned 988,179 shares of the software company’s stock after selling 36,294 shares during the period. Adobe comprises about 1.8% of Diamond Hill Capital Management Inc.’s investment portfolio, making the stock its 17th biggest position. Diamond Hill Capital Management Inc.’s holdings in Adobe were worth $345,853,000 at the end of the most recent reporting period.

Several other large investors also recently made changes to their positions in the stock. Addison Advisors LLC increased its stake in shares of Adobe by 108.1% during the 4th quarter. Addison Advisors LLC now owns 179 shares of the software company’s stock worth $63,000 after purchasing an additional 93 shares during the last quarter. Van Hulzen Asset Management LLC raised its holdings in shares of Adobe by 6.1% in the 4th quarter. Van Hulzen Asset Management LLC now owns 14,615 shares of the software company’s stock valued at $5,115,000 after purchasing an additional 837 shares during the period. Plan A Wealth LLC lifted its stake in Adobe by 8.2% in the 4th quarter. Plan A Wealth LLC now owns 1,404 shares of the software company’s stock valued at $491,000 after purchasing an additional 107 shares during the last quarter. Global Retirement Partners LLC lifted its stake in Adobe by 61.0% in the 4th quarter. Global Retirement Partners LLC now owns 10,768 shares of the software company’s stock valued at $3,769,000 after purchasing an additional 4,079 shares during the last quarter. Finally, Hi Line Capital Management LLC bought a new position in Adobe during the fourth quarter worth about $7,779,000. Institutional investors and hedge funds own 81.79% of the company’s stock.

Insider Transactions at Adobe

In other news, CAO Jillian Forusz sold 755 shares of Adobe stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $246.25, for a total transaction of $185,918.75. Following the completion of the sale, the chief accounting officer owned 3,521 shares of the company’s stock, valued at approximately $867,046.25. This trade represents a 17.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Shantanu Narayen sold 75,000 shares of the business’s stock in a transaction dated 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 position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 77,091 shares of company stock valued at $18,782,773. 0.20% of the stock is currently owned by corporate insiders.

Adobe News Summary

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe is expanding its Firefly-powered creative tools into Google Gemini, which could broaden usage of its software and reinforce its position in digital creativity workflows. Adobe Is Bringing Its Firefly-Powered Creative AI Tools Directly Into Google Gemini
• Positive Sentiment: Commentary from 24/7 Wall St. highlighted Adobe as an oversold turnaround idea, arguing the stock’s weakness may be overdone relative to its fundamentals and AI-related revenue prospects. Adobe Price Prediction. A $417 Stock Now at $253 With AI Revenue Tripling. Here Is Our 12 Month Target
• Positive Sentiment: Michael Burry reportedly maintained a position in Adobe, which may signal some contrarian investor confidence in the beaten-down stock. Adobe Inc. (ADBE): Michael Burry Maintains Position

Analyst Upgrades and Downgrades

Several analysts have issued reports on ADBE shares. William Blair lowered Adobe from an “outperform” rating to a “market perform” rating in a research note on Thursday, March 26th. Sanford C. Bernstein set a $447.00 price objective on Adobe and gave the company an “outperform” rating in a research report on Friday, March 13th. Jefferies Financial Group reduced their target price on Adobe from $400.00 to $290.00 and set a “hold” rating for the company in a research note on Monday, February 23rd. Citigroup restated a “neutral” rating on shares of Adobe in a research note on Friday, April 10th. Finally, Barclays downgraded Adobe from an “overweight” rating to an “equal weight” rating and cut their price target for the company from $335.00 to $275.00 in a report on Friday, March 13th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, seventeen have assigned a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat.com, Adobe presently has a consensus rating of “Hold” and an average target price of $338.15.

Adobe Price Performance

Adobe stock opened at $244.10 on Friday. The company has a market capitalization of $98.67 billion, a price-to-earnings ratio of 14.22, a PEG ratio of 0.99 and a beta of 1.42. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.47. Adobe Inc. has a 12 month low of $224.13 and a 12 month high of $421.48. The stock’s 50 day moving average is $245.63 and its 200-day moving average is $287.76.

Adobe (NASDAQ:ADBE) last released its quarterly earnings results on Thursday, March 12th. The software company reported $6.06 earnings per share for the quarter, topping the consensus estimate of $5.87 by $0.19. The business had revenue of $6.40 billion during the quarter, compared to analysts’ expectations of $6.28 billion. Adobe had a return on equity of 64.48% and a net margin of 29.48%.The firm’s revenue for the quarter was up 12.0% compared to the same quarter last year. During the same period last year, the firm posted $5.08 EPS. 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 EPS for the current year.

Adobe declared that its Board of Directors has approved a stock buyback program on Tuesday, April 21st that allows the company to buyback $25.00 billion in outstanding shares. This buyback authorization allows the software company to purchase up to 24.9% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s management believes its shares are undervalued.

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.