Adobe (NASDAQ:ADBE) Shares Down 1.5% – Here’s Why

Adobe Inc. (NASDAQ:ADBE) shares fell 1.5% during mid-day trading on Friday . The stock traded as low as $328.00 and last traded at $333.95. 3,243,966 shares were traded during mid-day trading, a decline of 17% from the average session volume of 3,894,242 shares. The stock had previously closed at $339.04.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Bullish investor write-up arguing Adobe is an undervalued, long-term compounder and urging accumulation based on its AI/product roadmap. Adobe: I’m Pounding The Table On This Unloved Compounder (Rating Upgrade)
• Positive Sentiment: Adobe expanded its AI capabilities via a multi?year partnership with Runway to enhance Firefly video tools, supporting product differentiation and monetization of generative AI features. Adobe (ADBE) Partners With Runway to Expand Firefly AI Video Tools
• Positive Sentiment: Adobe exec coverage from CES highlights strategy on personalization and multi?model AI integrations (Runway, 11 Labs), reinforcing the company’s roadmap to capture creative and marketing spend. Beyond Firefly: Adobe VP Allison Blais Discusses Integrating Runway, 11 Labs and the Future of Multi-Model AI
• Neutral Sentiment: Review of short?term performance shows the stock has underperformed since the last earnings report; the piece outlines catalysts and risks that could move the stock next. Why Is Adobe (ADBE) Down 3.3% Since Last Earnings Report?
• Neutral Sentiment: Roundup of Wall Street research calls listing Adobe among top analyst actions for the day — informational context for market flow but not a single decisive call. Here Are Friday’s Top Wall Street Analyst Research Calls: Adobe, Airbnb, Altria, Crowdstrike…
• Negative Sentiment: BMO Capital Markets downgraded ADBE to Market Perform (from Outperform), citing rising competitive pressures — a near?term catalyst for the share decline and reduced upside expectations. Adobe Stock Falls. Shares ‘Will Remain Range-Bound’ As Competition Heats Up, Analyst Says.
• Negative Sentiment: Commentary arguing Adobe’s competitive moat looks less secure as new AI entrants and specialized tools pressure pricing and share in creative/marketing workflows. Adobe’s Competitive Moat Looks Less Secure

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the stock. Cowen restated a “hold” rating on shares of Adobe in a report on Monday, December 8th. Citigroup boosted their price target on shares of Adobe from $366.00 to $387.00 and gave the stock a “neutral” rating in a research note on Wednesday, December 17th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $430.00 price objective on shares of Adobe in a research note on Thursday, December 11th. UBS Group set a $487.00 price objective on Adobe in a report on Sunday, December 14th. Finally, TD Cowen lowered their target price on Adobe from $420.00 to $400.00 and set a “hold” rating for the company in a research note on Thursday, December 11th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twelve have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $410.92.

Adobe Stock Performance

The company’s 50-day moving average price is $337.28 and its 200 day moving average price is $350.48. The stock has a market capitalization of $139.79 billion, a PE ratio of 19.99, a PEG ratio of 1.33 and a beta of 1.53. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.02 and a current ratio of 1.00.

Adobe (NASDAQ:ADBE) last released its quarterly earnings results on Wednesday, December 10th. The software company reported $5.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $5.40 by $0.10. Adobe had a net margin of 30.00% and a return on equity of 61.28%. The company had revenue of $6.19 billion during the quarter, compared to the consensus estimate of $6.11 billion. During the same period in the prior year, the firm earned $4.81 earnings per share. Adobe’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. On average, equities research analysts expect that Adobe Inc. will post 16.65 earnings per share for the current fiscal year.

Insider Transactions at Adobe

In other news, CAO Jillian Forusz sold 149 shares of Adobe stock in a transaction that occurred on Friday, October 31st. The shares were sold at an average price of $337.88, for a total transaction of $50,344.12. Following the completion of the transaction, the chief accounting officer directly owned 3,426 shares in the company, valued at approximately $1,157,576.88. This trade represents a 4.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 0.16% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. CX Institutional grew its position in shares of Adobe by 72.9% during the 3rd quarter. CX Institutional now owns 27,922 shares of the software company’s stock valued at $9,849,000 after acquiring an additional 11,769 shares during the period. Lathrop Investment Management Co. lifted its position in Adobe by 2.8% during the second quarter. Lathrop Investment Management Co. now owns 26,544 shares of the software company’s stock valued at $10,269,000 after purchasing an additional 718 shares in the last quarter. Mcdaniel Terry & Co. grew its holdings in Adobe by 2.8% during the second quarter. Mcdaniel Terry & Co. now owns 39,507 shares of the software company’s stock valued at $15,284,000 after purchasing an additional 1,093 shares during the period. SteelPeak Wealth LLC increased its position in Adobe by 16.1% in the third quarter. SteelPeak Wealth LLC now owns 29,055 shares of the software company’s stock worth $10,249,000 after buying an additional 4,021 shares in the last quarter. Finally, Jackson Thornton Wealth Management LLC bought a new position in shares of Adobe in the second quarter worth about $328,000. Hedge funds and other institutional investors own 81.79% of the company’s stock.

About Adobe

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.