Analysts Set Adobe Inc. (NASDAQ:ADBE) PT at $275.00

Shares of Adobe Inc. (NASDAQ:ADBE) have earned a consensus rating of “Hold” from the thirty-three ratings firms that are covering the stock, Marketbeat.com reports. Five analysts have rated the stock with a sell rating, twenty-two have given a hold rating and six have issued a buy rating on the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $275.00.

ADBE has been the topic of several recent research reports. Citizens Jmp reaffirmed a “market perform” rating on shares of Adobe in a research note on Friday, June 12th. HSBC upgraded shares of Adobe from a “hold” rating to a “buy” rating and raised their target price for the stock from $282.00 to $308.00 in a report on Thursday, July 2nd. DA Davidson dropped their price target on Adobe from $300.00 to $250.00 and set a “buy” rating on the stock in a report on Friday, June 12th. TD Cowen cut their price objective on Adobe from $310.00 to $285.00 and set a “hold” rating for the company in a research report on Monday, June 8th. Finally, Bank of America restated an “underperform” rating and issued a $190.00 target price on shares of Adobe in a report on Tuesday, July 7th.

Adobe News Summary

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Multiple reports highlight Adobe’s attractive valuation, with some investors viewing the selloff as creating a buying opportunity and even raising the possibility that the company could become a takeover target. Is Adobe (ADBE) a Takeover Target? Rumors Are Swirling
• Positive Sentiment: Adobe was compared favorably with Autodesk on revenue trends, with Adobe showing larger scale and consistent quarter-over-quarter growth over the last eight quarters, which supports the case for durable business momentum. Adobe vs. Autodesk: What Revenue Trends Reveal About These Software Stocks
• Positive Sentiment: Several pieces frame Adobe as a potential beneficiary of the market’s reassessment of software stocks, arguing that AI is pressuring recurring-revenue models but that strong companies like Adobe are adapting and may emerge as relative winners. How to Find the Bargains in the Software Stock Wreckage
• Positive Sentiment: Commentary on Adobe’s “compelling valuation” and “generational buying opportunity” suggests investors are increasingly seeing the stock as undervalued despite intensifying competition. Adobe: Compelling Valuation Even Amid Intensifying Competition
• Positive Sentiment: Broader software-sector analysis also points to Adobe as having real competitive moats that AI may not easily replace, reinforcing confidence in the company’s long-term positioning. Alpha Buying: The Real Moats AI Can’t Replace
• Neutral Sentiment: Additional coverage on e-commerce and digital media trends mentions Adobe’s AI-related efforts, including its acquisition of Rephrase.AI, but the article is more about industry innovation than a direct catalyst for the stock. E-Commerce Update – AI Transforming Digital Retail Through Innovation and Connectivity
• Negative Sentiment: One article noted that an open-source browser-based PDF toolkit can replace Adobe Acrobat, highlighting ongoing competitive pressure in one of Adobe’s core product areas. I replaced Adobe Acrobat with a 10x faster, browser-based open-source PDF toolkit

Insider Buying and Selling

In other news, CEO Shantanu Narayen sold 75,000 shares of Adobe stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $243.54, for a total value of $18,265,500.00. Following the transaction, the chief executive officer directly owned 359,538 shares of the company’s stock, valued at $87,561,884.52. This trade represents a 17.26% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Daniel Durn sold 1,336 shares of the business’s stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $248.02, for a total transaction of $331,354.72. Following the sale, the chief financial officer owned 42,833 shares in the company, valued at $10,623,440.66. This represents a 3.02% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 77,091 shares of company stock worth $18,782,773 in the last quarter. 0.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Adobe

Several institutional investors and hedge funds have recently added to or reduced their stakes in ADBE. Willis Investment Counsel increased its stake in shares of Adobe by 138.9% during the fourth quarter. Willis Investment Counsel now owns 40,715 shares of the software company’s stock worth $14,250,000 after purchasing an additional 23,671 shares during the period. Nicholas Company Inc. increased its position in Adobe by 7.6% during the 4th quarter. Nicholas Company Inc. now owns 174,626 shares of the software company’s stock worth $61,117,000 after buying an additional 12,400 shares during the period. Teacher Retirement System of Texas boosted its position in shares of Adobe by 13.4% in the fourth quarter. Teacher Retirement System of Texas now owns 215,611 shares of the software company’s stock valued at $75,462,000 after acquiring an additional 25,435 shares during the period. Wealthfront Advisers LLC increased its position in Adobe by 13.2% during the fourth quarter. Wealthfront Advisers LLC now owns 55,179 shares of the software company’s stock worth $19,312,000 after acquiring an additional 6,426 shares during the period. Finally, True North Advisors LLC raised its stake in Adobe by 301.1% in the 4th quarter. True North Advisors LLC now owns 6,493 shares of the software company’s stock worth $2,273,000 after purchasing an additional 4,874 shares in the last quarter. 81.79% of the stock is currently owned by hedge funds and other institutional investors.

Adobe Stock Up 0.8%

ADBE opened at $237.25 on Monday. Adobe has a one year low of $190.12 and a one year high of $376.16. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.75 and a current ratio of 0.75. The stock’s fifty day moving average is $228.58 and its 200-day moving average is $256.19. The company has a market capitalization of $94.31 billion, a PE ratio of 13.57, a P/E/G ratio of 0.79 and a beta of 1.43.

Adobe (NASDAQ:ADBE) last announced its earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share for the quarter, beating the consensus estimate of $5.82 by $0.14. Adobe had a return on equity of 65.11% and a net margin of 28.69%.The business had revenue of $6.62 billion during the quarter, compared to analysts’ expectations of $6.45 billion. During the same quarter last year, the business posted $5.06 earnings per share. The company’s quarterly revenue was up 12.7% on a year-over-year basis. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. On average, equities analysts predict that Adobe will post 19.81 EPS for the current fiscal year.

Adobe declared that its Board of Directors has authorized a share buyback program on Tuesday, April 21st that authorizes the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization authorizes the software company to buy up to 24.9% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s management believes its stock is undervalued.

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.