Adobe (NASDAQ:ADBE) Shares Down 2.6% – What’s Next?

Shares of Adobe Inc. (NASDAQ:ADBE) dropped 2.6% during mid-day trading on Friday . The company traded as low as $295.42 and last traded at $296.12. Approximately 8,430,205 shares changed hands during trading, an increase of 75% from the average daily volume of 4,818,644 shares. The stock had previously closed at $304.09.

Analyst Ratings Changes

A number of equities analysts have recently commented on the company. Jefferies Financial Group lowered Adobe from a “buy” rating to a “hold” rating and cut their price target for the stock from $500.00 to $400.00 in a report on Monday, January 5th. Mizuho cut their target price on Adobe from $410.00 to $390.00 and set an “outperform” rating for the company in a research note on Thursday, November 20th. Stifel Nicolaus reduced their target price on Adobe from $480.00 to $450.00 and set a “buy” rating for the company in a report on Tuesday, December 9th. Cowen reissued a “hold” rating on shares of Adobe in a report on Monday, December 8th. Finally, DA Davidson restated a “buy” rating and issued a $500.00 price objective on shares of Adobe in a research report on Thursday, December 11th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, twelve have assigned a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat, Adobe has an average rating of “Hold” and an average target price of $402.85.

Adobe Stock Down 2.6%

The company has a debt-to-equity ratio of 0.53, a current ratio of 1.00 and a quick ratio of 1.02. The company has a fifty day moving average price of $335.36 and a 200 day moving average price of $348.11. The company has a market cap of $123.96 billion, a PE ratio of 17.72, a price-to-earnings-growth ratio of 1.20 and a beta of 1.53.

Adobe (NASDAQ:ADBE) last announced its earnings results on Wednesday, December 10th. The software company reported $5.50 earnings per share for the quarter, beating 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 business had revenue of $6.19 billion for the quarter, compared to the consensus estimate of $6.11 billion. During the same period last year, the firm posted $4.81 earnings per share. Adobe’s quarterly 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. As a group, analysts anticipate that Adobe Inc. will post 16.65 EPS for the current year.

Insider Transactions at Adobe

In related news, CAO Jillian Forusz sold 149 shares of the company’s stock in a transaction on Friday, October 31st. The shares were sold at an average price of $337.88, for a total value 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. The trade was a 4.17% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.16% of the company’s stock.

Hedge Funds Weigh In On Adobe

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Oregon Pacific Wealth Management LLC raised its holdings in shares of Adobe by 4.1% during the 4th quarter. Oregon Pacific Wealth Management LLC now owns 889 shares of the software company’s stock valued at $311,000 after buying an additional 35 shares in the last quarter. BridgePort Financial Solutions LLC bought a new position in Adobe during the fourth quarter valued at approximately $568,000. Tempus Wealth Planning LLC grew its position in Adobe by 9.4% during the fourth quarter. Tempus Wealth Planning LLC now owns 2,229 shares of the software company’s stock valued at $780,000 after acquiring an additional 192 shares during the last quarter. IVC Wealth Advisors LLC raised its stake in shares of Adobe by 9.1% during the fourth quarter. IVC Wealth Advisors LLC now owns 3,412 shares of the software company’s stock worth $1,194,000 after acquiring an additional 286 shares in the last quarter. Finally, Marquette Asset Management LLC lifted its holdings in shares of Adobe by 72.3% in the 4th quarter. Marquette Asset Management LLC now owns 81 shares of the software company’s stock worth $28,000 after acquiring an additional 34 shares during the last quarter. 81.79% of the stock is currently owned by hedge funds and other institutional investors.

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.