Traders Purchase High Volume of Put Options on Adobe (NASDAQ:ADBE)

Adobe Inc. (NASDAQ:ADBE) was the target of unusually large options trading on Thursday. Stock traders purchased 188,902 put options on the company. This is an increase of approximately 248% compared to the typical daily volume of 54,325 put options.

Analyst Ratings Changes

ADBE has been the topic of several recent research reports. Piper Sandler cut shares of Adobe from an “overweight” rating to a “neutral” rating and decreased their target price for the company from $470.00 to $330.00 in a research report on Monday, February 2nd. TD Cowen decreased their price objective on Adobe from $420.00 to $400.00 and set a “hold” rating on the stock in a research report on Thursday, December 11th. Wolfe Research lowered their price objective on Adobe from $450.00 to $440.00 and set an “outperform” rating for the company in a research note on Thursday, December 11th. The Goldman Sachs Group initiated coverage on Adobe in a research report on Monday, January 12th. They issued a “sell” rating and a $290.00 price target for the company. Finally, Stifel Nicolaus reduced their target price on shares of Adobe from $480.00 to $450.00 and set a “buy” rating on the stock in a research note on Tuesday, December 9th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, eleven have issued a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat, Adobe currently has an average rating of “Hold” and a consensus price target of $397.16.

Key Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe beat expectations last quarter (EPS $5.50 vs. $5.40 consensus) and revenue topped estimates ($6.19B vs. ~$6.11B); management issued FY26 guidance that implies continued earnings power — a fundamental offset to the sell-off.
• Neutral Sentiment: Figma’s strong Q4 and its Anthropic integration show AI can expand design platforms and SaaS usage — this validates an AI-driven demand case for some software, but it also intensifies competitive pressure in creative/design tools that touch Adobe’s business. Figma’s Anthropic Integration Could Flip the SaaSpocalypse Script
• Neutral Sentiment: Recent valuation pieces have put Adobe back in focus as shares sit far below prior highs; analysts and commentators are re-evaluating targets and risk assumptions. Assessing Adobe’s Valuation
• Neutral Sentiment: Long-term performance retrospectives and noisy short-interest reports in the data feed are background noise for traders but don’t change Adobe’s fundamentals in the near term. 20-Year Performance
• Negative Sentiment: Unusually large put-option activity: ~188,902 puts traded (?+248% vs. typical), signaling heavy bearish bets or hedging that can amplify downside moves and pressure the stock today.
• Negative Sentiment: Persistent negative media/analyst tone: pieces highlighting AI as an existential threat to Adobe’s pricing power and growth have proliferated, increasing market skepticism. Adobe Stock Drops 26%
• Negative Sentiment: High-profile negative commentary (including Jim Cramer and cautionary analyst write-ups) is reinforcing the risk-off narrative for Adobe and the software sector. Jim Cramer Believes Adobe’s In Trouble Why Wall Street Is Turning Cautious
• Negative Sentiment: Analysis pieces warning of a “SaaS valuation reset” and questions about Adobe’s AI positioning keep downward pressure on multiples even as near-term earnings remain solid. SaaS Apocalypse Valuation Check

Insider Activity

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

Institutional Trading of Adobe

A number of hedge funds have recently added to or reduced their stakes in the business. Van Diest Capital LLC bought a new stake in shares of Adobe in the 4th quarter valued at about $323,000. Compound Planning Inc. increased its holdings in Adobe by 52.3% during the fourth quarter. Compound Planning Inc. now owns 5,181 shares of the software company’s stock valued at $1,813,000 after buying an additional 1,779 shares during the period. Invesco Ltd. raised its stake in Adobe by 6.2% in the fourth quarter. Invesco Ltd. now owns 5,119,025 shares of the software company’s stock worth $1,791,607,000 after buying an additional 297,337 shares in the last quarter. Michels Family Financial LLC lifted its holdings in Adobe by 25.3% during the fourth quarter. Michels Family Financial LLC now owns 1,785 shares of the software company’s stock worth $625,000 after buying an additional 360 shares during the period. Finally, Rare Wolf Capital LLC bought a new stake in Adobe during the 4th quarter valued at $2,002,000. 81.79% of the stock is owned by hedge funds and other institutional investors.

Adobe Trading Down 1.5%

ADBE traded down $3.96 on Thursday, reaching $259.21. 3,608,834 shares of the company traded hands, compared to its average volume of 5,563,281. The company has a market cap of $106.41 billion, a P/E ratio of 15.51, a price-to-earnings-growth ratio of 1.02 and a beta of 1.51. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.53. Adobe has a one year low of $251.10 and a one year high of $461.00. The firm has a fifty day simple moving average of $313.11 and a two-hundred day simple moving average of $332.89.

Adobe (NASDAQ:ADBE) last issued its earnings results on Wednesday, December 10th. The software company reported $5.50 EPS for the quarter, topping analysts’ consensus estimates of $5.40 by $0.10. The business had revenue of $6.19 billion for the quarter, compared to analyst estimates of $6.11 billion. Adobe had a net margin of 30.00% and a return on equity of 61.28%. The company’s quarterly revenue was up 10.5% compared to the same quarter last year. During the same period last year, the company posted $4.81 earnings per share. 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, equities research analysts expect that Adobe will post 16.65 earnings per share for the current year.

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.