Adobe (NASDAQ:ADBE) Trading Down 7.3% – Time to Sell?

Adobe Inc. (NASDAQ:ADBE)’s share price traded down 7.3% during trading on Tuesday . The company traded as low as $271.02 and last traded at $271.93. 8,245,077 shares traded hands during mid-day trading, an increase of 61% from the average session volume of 5,131,541 shares. The stock had previously closed at $293.38.

Key Stories Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Semrush shareholders approved the merger agreement, clearing a major regulatory/transactional hurdle and expanding Adobe’s marketing/search analytics capabilities — a strategic bolt-on that can boost revenue and cross-sell in Adobe’s Experience Cloud. Semrush Shareholders Approve Merger Agreement with Adobe
• Positive Sentiment: Adobe is offering unlimited Firefly AI generations through March 16, accelerating product adoption and engagement for its AI studio — supports the company’s strategic pivot toward AI-driven creative tools. Adobe Offers Unlimited Generations for Adobe Firefly AI Until March 16
• Positive Sentiment: Some analysts still see significant upside (one note called ADBE a “moderate buy” with large upside), indicating pockets of bullish conviction that could limit downside over the medium term. Adobe Inc. (ADBE) a Moderate Buy, Analysts See 52% Upside
• Neutral Sentiment: Coverage comparing Figma and Adobe highlights competitive dynamics in creative tools — relevant to long-term positioning but not an immediate catalyst. Better Creative Tools Stock: Figma vs. Adobe
• Neutral Sentiment: Analysis of CFO views on scaling AI underscores Adobe’s long-term focus on governance and data — strategic context for investors watching AI investments vs. near-term margins. What CFOs at Adobe, Dataminr, and Huntington say about scaling AI
• Negative Sentiment: Adobe announced it will discontinue Adobe Animate (shut down March 1), triggering creator backlash and potential churn in a niche user base — a reputational/headline risk while the company pivots to AI. Adobe Animate is shutting down as company focuses on AI
• Negative Sentiment: Several firms (UBS, Baird, BMO Capital) have trimmed price targets or downgraded ADBE, reflecting concerns about near-term growth/multiple compression — analyst action is weighing on sentiment. UBS, Baird Lower PT on Adobe (ADBE), BMO Capital Downgrades to Market Perform
• Negative Sentiment: Broader tech weakness and competitive pressure from offerings like Apple’s Creator Studio and new subscription bundles have pressured ADBE into near 52?week lows as investors weigh near-term risks vs. AI upside. What’s Going On With Adobe Stock Tuesday?

Wall Street Analyst Weigh In

ADBE has been the subject of a number of research analyst reports. Oppenheimer lowered Adobe from an “outperform” rating to a “market perform” rating in a report on Tuesday, January 13th. Citigroup increased their price objective on Adobe from $366.00 to $387.00 and gave the stock a “neutral” rating in a research note on Wednesday, December 17th. The Goldman Sachs Group assumed coverage on Adobe in a research report on Monday, January 12th. They set a “sell” rating and a $290.00 price objective for the company. Piper Sandler downgraded Adobe from an “overweight” rating to a “neutral” rating and dropped their target price for the company from $470.00 to $330.00 in a report on Monday. Finally, DA Davidson reissued a “buy” rating and issued a $500.00 price target on shares of Adobe in a research report on Thursday, December 11th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, eleven have assigned a Hold rating and five have issued a Sell rating to the company’s stock. Based on data from MarketBeat, Adobe presently has an average rating of “Hold” and an average price target of $391.81.

Adobe Stock Performance

The firm has a 50-day simple moving average of $328.24 and a two-hundred day simple moving average of $341.14. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.53. The company has a market capitalization of $111.63 billion, a price-to-earnings ratio of 16.27, a price-to-earnings-growth ratio of 1.15 and a beta of 1.51.

Adobe (NASDAQ:ADBE) last announced its quarterly earnings results on Wednesday, December 10th. The software company reported $5.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.40 by $0.10. Adobe had a return on equity of 61.28% and a net margin of 30.00%.The business had revenue of $6.19 billion during the quarter, compared to analyst estimates of $6.11 billion. During the same period in the previous year, the company earned $4.81 EPS. The firm’s revenue was up 10.5% on a year-over-year basis. Adobe has set its Q1 2026 guidance at 5.850-5.900 EPS and its FY 2026 guidance at 23.300-23.500 EPS. As a group, sell-side analysts forecast that Adobe Inc. will post 16.65 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CFO Daniel Durn sold 1,646 shares of the stock in a transaction on Tuesday, January 27th. The shares were sold at an average price of $294.85, for a total transaction of $485,323.10. Following the transaction, the chief financial officer owned 41,995 shares in the company, valued at $12,382,225.75. This represents a 3.77% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.16% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Adobe

A number of large investors have recently bought and sold shares of ADBE. LSV Asset Management lifted its position in shares of Adobe by 350.0% in the second quarter. LSV Asset Management now owns 72 shares of the software company’s stock worth $28,000 after buying an additional 56 shares during the last quarter. Measured Wealth Private Client Group LLC bought a new position in shares of Adobe in the 3rd quarter valued at approximately $26,000. Caitlin John LLC bought a new position in shares of Adobe in the 3rd quarter valued at approximately $28,000. Nexus Investment Management ULC acquired a new stake in Adobe in the 2nd quarter worth approximately $31,000. Finally, Beacon Financial Strategies CORP bought a new stake in Adobe during the fourth quarter worth approximately $28,000. 81.79% of the stock is currently owned by institutional investors.

Adobe Company 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.