Adobe (NASDAQ:ADBE) Cut to “Hold” at Wall Street Zen

Wall Street Zen downgraded shares of Adobe (NASDAQ:ADBE) from a buy rating to a hold rating in a research note published on Saturday,Wall Street Zen reports.

Other equities analysts also recently issued research reports about the stock. The Goldman Sachs Group upped their price objective on shares of Adobe from $190.00 to $200.00 and gave the company a “sell” rating in a research note on Monday, September 14th. Jefferies Financial Group cut their price target on Adobe from $285.00 to $275.00 and set a “hold” rating for the company in a report on Friday, September 11th. Sanford C. Bernstein cut their price target on Adobe from $379.00 to $373.00 and set an “outperform” rating for the company in a report on Friday, September 11th. Mizuho set a $260.00 price objective on shares of Adobe and gave the company a “neutral” rating in a research note on Tuesday, September 8th. Finally, Phillip Securities lowered shares of Adobe from a “strong-buy” rating to a “hold” rating and cut their price objective for the stock from $368.00 to $203.00 in a report on Monday, June 29th. Ten research analysts have rated the stock with a Buy rating, nineteen have issued a Hold rating and seven have given a Sell rating to the company. According to data from MarketBeat.com, Adobe currently has an average rating of “Hold” and an average price target of $285.23.

Adobe Trading Down 1.7%

Shares of ADBE stock opened at $238.14 on Friday. The company has a market capitalization of $92.68 billion, a P/E ratio of 13.29, a price-to-earnings-growth ratio of 0.84 and a beta of 1.42. The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 0.41. The business’s 50 day moving average is $257.94 and its two-hundred day moving average is $242.84. Adobe has a twelve month low of $190.12 and a twelve month high of $363.70.

Adobe (NASDAQ:ADBE) last issued its quarterly earnings results on Thursday, September 10th. The software company reported $6.13 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $6.08 by $0.05. The business had revenue of $6.76 billion for the quarter, compared to analyst estimates of $6.69 billion. Adobe had a net margin of 28.05% and a return on equity of 65.65%. The business’s revenue was up 12.9% compared to the same quarter last year. During the same period in the previous year, the business posted $5.31 earnings per share. Adobe has set its Q4 2026 guidance at 6.300-6.350 EPS and its FY 2026 guidance at 24.450-24.500 EPS. Equities analysts forecast that Adobe will post 20.01 EPS for the current year.

Insider Activity at Adobe

In other news, CEO Shantanu Narayen sold 50,500 shares of Adobe stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $249.57, for a total value of $12,603,285.00. Following the completion of the transaction, the chief executive officer owned 238,724 shares in the company, valued at approximately $59,578,348.68. This trade represents a 17.46% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Jillian Forusz sold 416 shares of Adobe stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $264.33, for a total transaction of $109,961.28. Following the completion of the transaction, the chief accounting officer directly owned 3,824 shares of the company’s stock, valued at $1,010,797.92. This trade represents a 9.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 125,416 shares of company stock valued at $31,454,466 in the last ninety days. 0.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Adobe

Several institutional investors and hedge funds have recently bought and sold shares of ADBE. Security National Bank of Sioux City Iowa IA bought a new position in shares of Adobe during the second quarter worth about $27,000. Mowery & Schoenfeld Wealth Management LLC bought a new stake in Adobe in the 2nd quarter valued at about $28,000. North Point Portfolio Managers Corp OH acquired a new position in Adobe during the 3rd quarter valued at about $30,000. Bullock Wealth Management Group boosted its stake in Adobe by 468.2% during the 3rd quarter. Bullock Wealth Management Group now owns 125 shares of the software company’s stock valued at $30,000 after purchasing an additional 103 shares during the period. Finally, Sankala Group LLC acquired a new position in Adobe during the 4th quarter valued at about $31,000. Institutional investors and hedge funds own 81.79% of the company’s stock.

More Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe expanded its AI partnership with Heathrow Airport, whose platform will support personalized digital experiences for more than 84 million annual passengers across trip planning, check-in and airport visits. The agreement provides a real-world use case for Adobe’s AI agents beyond creative and marketing workflows. What Could Adobe Gain From Taking AI Into 84 Million Traveler Journeys?
• Positive Sentiment: A Bernstein analyst argued that Adobe may be significantly undervalued after its stock declined roughly 30% this year, noting that the company has continued to beat earnings expectations and raise guidance. This provides a bullish counterpoint to the broader downgrade-driven selloff. Adobe Keeps Cratering: One Wall Street Pro’s Thesis Projects 50% Gains
• Neutral Sentiment: Analysts see a major shift in enterprise technology spending toward AI software. Salesforce may benefit from deeper customer relationships, while Adobe is viewed as more exposed to disruption, making AI adoption and monetization key issues for investors. These Stocks Could Be the Future Winners and Losers of a Massive Shift in IT Spending
• Negative Sentiment: Wells Fargo cut Adobe to Underweight from Equal Weight and reduced its price target to $225 from $270. The bank cited deteriorating organic growth, rising competition, declining pricing power, executive instability and difficulty converting AI products into meaningful revenue. Its CIO survey also indicated Adobe may be losing share of corporate AI budgets, while the firm could need to nearly double new recurring revenue to meet its targets. Adobe Stock Falls as Wells Fargo Downgrades Shares
• Negative Sentiment: Reports that developers are creating inexpensive or free AI-based alternatives resembling several Adobe applications heightened fears that generative AI could erode Adobe’s subscription moat and pricing power. Everything We Know About the Free Adobe Clones Built With AI

About Adobe

Adobe Inc (NASDAQ: ADBE) is a global software company that develops tools for creating, managing, delivering and analyzing digital content. Its products serve creative professionals, marketers, enterprises, students and individual consumers across a broad range of industries and geographies.

Adobe’s Creative Cloud portfolio includes applications such as Photoshop, Illustrator, Premiere Pro, InDesign and Adobe Express for graphic design, photography, video, illustration and digital content creation.