Saturna Capital Corp Cuts Holdings in Adobe Inc. $ADBE

Saturna Capital Corp lowered its holdings in Adobe Inc. (NASDAQ:ADBE) by 94.2% in the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 9,533 shares of the software company’s stock after selling 156,117 shares during the quarter. Saturna Capital Corp’s holdings in Adobe were worth $2,317,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also modified their holdings of the company. Norges Bank purchased a new stake in Adobe during the fourth quarter worth $2,275,165,000. AQR Capital Management LLC increased its holdings in Adobe by 55.2% during the 3rd quarter. AQR Capital Management LLC now owns 2,587,399 shares of the software company’s stock valued at $912,705,000 after acquiring an additional 920,353 shares in the last quarter. Amundi raised its position in Adobe by 17.9% during the third quarter. Amundi now owns 4,888,283 shares of the software company’s stock worth $1,711,583,000 after acquiring an additional 742,646 shares during the last quarter. State of Michigan Retirement System raised its position in Adobe by 566.1% during the first quarter. State of Michigan Retirement System now owns 820,823 shares of the software company’s stock worth $199,526,000 after acquiring an additional 697,600 shares during the last quarter. Finally, AMF Tjanstepension AB purchased a new stake in shares of Adobe in the first quarter valued at about $167,494,000. Institutional investors and hedge funds own 81.79% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on ADBE shares. Citizens Jmp reissued a “market perform” rating on shares of Adobe in a research note on Friday, June 12th. Stifel Nicolaus reaffirmed a “hold” rating and issued a $200.00 target price (down from $350.00) on shares of Adobe in a research note on Friday, June 12th. Citigroup reiterated a “market perform” rating on shares of Adobe in a report on Friday, June 12th. Morgan Stanley downgraded Adobe from an “equal weight” rating to an “underweight” rating and dropped their price target for the stock from $365.00 to $240.00 in a research report on Tuesday. Finally, Piper Sandler cut their price target on Adobe from $280.00 to $240.00 and set a “neutral” rating for the company in a report on Friday, June 12th. Seven equities research analysts have rated the stock with a Buy rating, twenty-one have issued a Hold rating and six have given a Sell rating to the company. According to MarketBeat, Adobe has a consensus rating of “Hold” and an average target price of $271.30.

Insider Buying and Selling at Adobe

In other Adobe news, CAO Jillian Forusz sold 755 shares of the business’s stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $246.25, for a total value of $185,918.75. Following the completion of the transaction, the chief accounting officer directly owned 3,521 shares in the company, valued at approximately $867,046.25. The trade was a 17.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director David A. Ricks purchased 10,000 shares of Adobe stock in a transaction on Thursday, June 25th. The shares were acquired at an average cost of $194.51 per share, for a total transaction of $1,945,100.00. Following the purchase, the director owned 17,655 shares in the company, valued at approximately $3,434,074.05. This trade represents a 130.63% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.20% of the stock is currently owned by insiders.

Adobe Stock Performance

Shares of NASDAQ ADBE opened at $227.16 on Wednesday. The company has a 50-day simple moving average of $228.08 and a 200-day simple moving average of $253.81. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.75 and a quick ratio of 0.75. The company has a market cap of $90.30 billion, a PE ratio of 13.00, a price-to-earnings-growth ratio of 0.79 and a beta of 1.43. Adobe Inc. has a 12 month low of $190.12 and a 12 month high of $376.16.

Adobe (NASDAQ:ADBE) last announced its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.82 by $0.14. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The business had revenue of $6.62 billion for the quarter, compared to the consensus estimate of $6.45 billion. During the same quarter in the prior year, the firm posted $5.06 earnings per share. The company’s quarterly revenue was up 12.7% compared to the same quarter last year. 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 anticipate that Adobe Inc. will post 19.81 earnings per share for the current year.

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

Key Stories Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Negative Sentiment: Morgan Stanley lowered Adobe to Underweight, saying multiple strategic transitions are happening at once and that AI disruption could make it harder for the company to reaccelerate growth. Adobe stock has been crushed by AI fears. Now Morgan Stanley has cut its rating to underweight
• Negative Sentiment: More Wall Street downgrades and commentary around Adobe’s AI exposure are adding to the selling pressure, with some analysts saying peers may offer cleaner AI monetization and faster growth. ADBE Stock Drops After Morgan Stanley Downgrade – Sees ‘Cleaner Growth And AI Monetization Elsewhere’
• Neutral Sentiment: Adobe continues to push into AI with new features in its experimental Project Indigo camera app, highlighting that it is still investing in product innovation even as investors worry about competitive threats. Adobe crams multiple AI tools into its experimental camera app
• Neutral Sentiment: Some coverage argues Adobe still looks attractive on valuation and that one analyst sees meaningful upside from current levels, but that view is being outweighed today by broader AI-related concern. ADBE stock is falling again but here’s why one Wall Street analyst sees a 31% upside

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.