Adobe Inc. $ADBE Stock: Rakuten Investment Management Inc. Grows Holdings

Rakuten Investment Management Inc. grew its stake in shares of Adobe Inc. (NASDAQ:ADBE) by 8.7% in the third quarter, HoldingsChannel.com reports. The firm owned 105,828 shares of the software company’s stock after purchasing an additional 8,443 shares during the period. Rakuten Investment Management Inc.’s holdings in Adobe were worth $24,676,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Cyndeo Wealth Partners LLC lifted its holdings in shares of Adobe by 2.8% in the third quarter. Cyndeo Wealth Partners LLC now owns 1,559 shares of the software company’s stock valued at $374,000 after purchasing an additional 43 shares in the last quarter. Meridian Management Co. grew its holdings in Adobe by 0.3% during the first quarter. Meridian Management Co. now owns 15,241 shares of the software company’s stock worth $3,705,000 after buying an additional 44 shares in the last quarter. Brown Shipley& Co Ltd grew its holdings in Adobe by 28.8% during the first quarter. Brown Shipley& Co Ltd now owns 197 shares of the software company’s stock worth $48,000 after buying an additional 44 shares in the last quarter. United Bank grew its holdings in Adobe by 1.4% during the first quarter. United Bank now owns 3,658 shares of the software company’s stock worth $889,000 after buying an additional 49 shares in the last quarter. Finally, Drystone LLC raised its position in Adobe by 0.5% in the 2nd quarter. Drystone LLC now owns 10,420 shares of the software company’s stock valued at $2,136,000 after buying an additional 50 shares during the last quarter. 81.79% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the company. Morgan Stanley restated an “underweight” rating on shares of Adobe in a research note on Friday, September 11th. The Goldman Sachs Group upped their target price on shares of Adobe from $190.00 to $200.00 and gave the stock a “sell” rating in a research note on Monday, September 14th. HSBC lowered shares of Adobe from a “buy” rating to a “hold” rating and reduced their target price for the stock from $310.00 to $267.00 in a research note on Tuesday, October 13th. Weiss Ratings upgraded shares of Adobe from a “sell (d)” rating to a “sell (d+)” rating in a report on Tuesday, September 1st. Finally, Oppenheimer reissued a “market perform” rating on shares of Adobe in a research report on Tuesday, September 8th. Nine investment analysts have rated the stock with a Buy rating, twenty have assigned a Hold rating and seven have given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $283.90.

Insider Buying and Selling

In related news, CEO Shantanu Narayen sold 74,500 shares of the firm’s stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $251.56, for a total value of $18,741,220.00. Following the completion of the transaction, the chief executive officer directly owned 289,224 shares of the company’s stock, valued at approximately $72,757,189.44. This trade represents a 20.48% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.20% of the company’s stock.

Adobe Stock Down 2.1%

Adobe stock opened at $246.14 on Wednesday. The firm has a 50 day moving average price of $253.29 and a 200-day moving average price of $250.40. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 0.41. Adobe Inc. has a twelve month low of $190.12 and a twelve month high of $362.71. The company has a market capitalization of $95.80 billion, a P/E ratio of 13.74, a P/E/G ratio of 0.88 and a beta of 1.37.

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

Adobe News Summary

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe is bringing licensed music from Universal Music Group and Warner Music Group to Premiere mobile. The added music catalog could make the video-editing app more useful and attractive to creators, though the reports did not describe a financial contribution. Forbes article on Adobe’s music deals
• Neutral Sentiment: Analyst views remain split: some see potential in Adobe’s freemium offerings and AI, while others are wary of softer annual recurring revenue (ARR) trends and competition. A compiled fair-value estimate was trimmed from $275.06 to $268.30, suggesting somewhat less estimated upside. Analyst views on Adobe fair value
• Negative Sentiment: Investors may be concerned that AI could challenge Adobe’s competitive edge, as new AI tools and software alternatives raise questions about the durability of its business and pricing power. This concern adds to pressure from competition and softer ARR trends. Article on AI and Adobe’s competitive edge

About Adobe

Adobe Inc is a global software company that develops digital tools for creative professionals, businesses, marketers, and individual users. Its products help customers create, edit, publish, manage, and measure digital content across websites, mobile applications, documents, and other media.

The company’s Creative Cloud portfolio includes applications such as Photoshop, Illustrator, InDesign, Premiere Pro, and Acrobat. Adobe also offers Document Cloud, which provides tools for creating, editing, sharing, signing, and managing digital documents, and Experience Cloud, a suite of solutions for digital marketing, analytics, commerce, customer journeys, and content management.