Davis Capital Management Sells 3,100 Shares of Adobe Inc. $ADBE

Davis Capital Management lessened its holdings in shares of Adobe Inc. (NASDAQ:ADBE) by 77.3% in the fourth quarter, according to its most recent filing with the SEC. The firm owned 909 shares of the software company’s stock after selling 3,100 shares during the period. Davis Capital Management’s holdings in Adobe were worth $318,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds also recently made changes to their positions in ADBE. Brighton Jones LLC increased its holdings in Adobe by 2.1% in the fourth quarter. Brighton Jones LLC now owns 8,068 shares of the software company’s stock valued at $3,588,000 after purchasing an additional 167 shares during the last quarter. Sivia Capital Partners LLC boosted its holdings in Adobe by 25.5% during the second quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company’s stock worth $926,000 after buying an additional 486 shares during the last quarter. United Bank grew its position in shares of Adobe by 12.8% during the 2nd quarter. United Bank now owns 3,773 shares of the software company’s stock worth $1,460,000 after buying an additional 428 shares during the period. Schnieders Capital Management LLC. grew its position in shares of Adobe by 7.8% during the 2nd quarter. Schnieders Capital Management LLC. now owns 2,630 shares of the software company’s stock worth $1,017,000 after buying an additional 190 shares during the period. Finally, Gamco Investors INC. ET AL grew its holdings in Adobe by 190.6% during the second quarter. Gamco Investors INC. ET AL now owns 2,764 shares of the software company’s stock valued at $1,069,000 after purchasing an additional 1,813 shares during the period. Institutional investors own 81.79% of the company’s stock.

Adobe Trading Down 7.8%

Shares of ADBE opened at $235.99 on Thursday. Adobe Inc. has a 52-week low of $224.13 and a 52-week high of $422.95. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.91 and a current ratio of 0.91. The firm has a market cap of $95.39 billion, a price-to-earnings ratio of 13.82, a PEG ratio of 0.96 and a beta of 1.52. The business’s fifty day moving average is $252.69 and its 200-day moving average is $301.21.

Adobe (NASDAQ:ADBE) last announced its quarterly earnings results on Thursday, March 12th. The software company reported $6.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.87 by $0.19. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The firm had revenue of $6.40 billion during the quarter, compared to analysts’ expectations of $6.28 billion. During the same period in the prior year, the company posted $5.08 EPS. The company’s revenue was up 12.0% on a year-over-year basis. 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 analysts anticipate that Adobe Inc. will post 19.14 EPS for the current fiscal year.

Adobe declared that its board has authorized a stock repurchase program on Tuesday, April 21st that permits the company to buyback $25.00 billion in shares. This buyback authorization permits the software company to reacquire up to 24.9% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board believes its shares are undervalued.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the stock. Weiss Ratings lowered shares of Adobe from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, March 6th. William Blair cut shares of Adobe from an “outperform” rating to a “market perform” rating in a research report on Thursday, March 26th. Stifel Nicolaus dropped their price objective on Adobe from $450.00 to $400.00 and set a “buy” rating on the stock in a research note on Friday, March 13th. TD Cowen decreased their target price on Adobe from $400.00 to $325.00 and set a “hold” rating for the company in a research note on Tuesday, March 10th. Finally, Jefferies Financial Group cut their price target on shares of Adobe from $400.00 to $290.00 and set a “hold” rating on the stock in a research note on Monday, February 23rd. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, fifteen have assigned a Hold rating and five have assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $339.88.

Insiders Place Their Bets

In other Adobe news, CFO Daniel Durn sold 1,646 shares of the firm’s stock in a transaction on Tuesday, January 27th. The stock was sold at an average price of $294.85, for a total transaction of $485,323.10. Following the transaction, the chief financial officer directly owned 41,995 shares in the company, valued at approximately $12,382,225.75. This trade represents a 3.77% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.20% of the company’s stock.

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Board approves a $25 billion share buyback through April 2030 — a large capital?return program (roughly 24% of market cap) that management says signals confidence in cash flow and undervaluation. Adobe Announces New $25 Billion Stock Repurchase Program
• Positive Sentiment: Adobe showcased agentic AI products (CX Enterprise, GenStudio, Firefly integrations) and many enterprise partnerships at Adobe Summit — news that investors view as concrete paths to monetize AI in marketing/CX budgets. Adobe’s new AI experiment can whip up a website custom designed for Gen Z
• Positive Sentiment: Analyst and industry praise (including public endorsements and favorable writeups) around Adobe’s AI progress has reinforced the buyback news and lifted sentiment. Adobe Unleashed: Why Nvidia’s CEO Says This AI Giant Is the Future of Marketing
• Neutral Sentiment: Adobe is testing outcome?based pricing for its new AI suite — could boost monetization if customers see measurable ROI, but details and scale are still unclear. Adobe Plans Outcome-Based Pricing for New AI Product Suite
• Neutral Sentiment: Some sell?side caution remains (hold/neutral ratings citing valuation and competitive risk), so upside depends on execution and proof of enterprise AI monetization. Adobe: AI Ambition and Buybacks Offset by Competitive Pressures and Valuation, Justifying a Hold Rating
• Negative Sentiment: Broader enterprise?software weakness after ServiceNow and IBM results and Middle East uncertainty pressured the sector earlier, creating headwinds that Adobe must continue to counter. ServiceNow stock tumbles 12% as war in Iran impacts sales growth
• Negative Sentiment: Competitive threats from new agentic design tools (e.g., Anthropic’s Claude Design) and specialist rivals like Figma keep pressure on Adobe’s creative franchise and could weigh on long?term growth. As Competition Heats Up, Can Figma Recover?
• Negative Sentiment: Insider sale: CFO Daniel Durn disclosed a modest sale (~1,336 shares), which some investors monitor as a signal even though it’s small relative to holdings. SEC Form 4 — Daniel Durn

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.