Hendershot Investments Inc. Acquires 9,575 Shares of Adobe Inc. $ADBE

Hendershot Investments Inc. raised its holdings in Adobe Inc. (NASDAQ:ADBE) by 42.4% in the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 32,165 shares of the software company’s stock after purchasing an additional 9,575 shares during the quarter. Adobe makes up about 1.4% of Hendershot Investments Inc.’s investment portfolio, making the stock its 25th largest position. Hendershot Investments Inc.’s holdings in Adobe were worth $11,346,000 at the end of the most recent quarter.

Several other large investors also recently made changes to their positions in the business. CX Institutional raised its holdings in Adobe by 72.9% during the 3rd quarter. CX Institutional now owns 27,922 shares of the software company’s stock worth $9,849,000 after purchasing an additional 11,769 shares during the last quarter. Wright Investors Service Inc. boosted its stake in shares of Adobe by 114.4% in the 3rd quarter. Wright Investors Service Inc. now owns 9,919 shares of the software company’s stock valued at $3,499,000 after purchasing an additional 5,293 shares during the last quarter. Federated Hermes Inc. grew its position in shares of Adobe by 185.1% during the 3rd quarter. Federated Hermes Inc. now owns 898,408 shares of the software company’s stock worth $316,913,000 after buying an additional 583,275 shares during the period. Jones Financial Companies Lllp raised its stake in shares of Adobe by 43.8% during the third quarter. Jones Financial Companies Lllp now owns 106,598 shares of the software company’s stock worth $38,309,000 after buying an additional 32,448 shares during the last quarter. Finally, Rakuten Investment Management Inc. acquired a new position in Adobe in the third quarter valued at approximately $24,904,000. Institutional investors own 81.79% of the company’s stock.

Adobe Price Performance

Shares of ADBE opened at $262.41 on Friday. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.00 and a current ratio of 1.00. The stock has a 50 day simple moving average of $299.64 and a 200 day simple moving average of $328.87. Adobe Inc. has a 52-week low of $244.28 and a 52-week high of $453.26. The firm has a market capitalization of $107.72 billion, a PE ratio of 15.70, a P/E/G ratio of 1.03 and a beta of 1.51.

Adobe (NASDAQ:ADBE) last announced its earnings results on Wednesday, December 10th. The software company reported $5.50 EPS for the quarter, topping the consensus estimate of $5.40 by $0.10. Adobe had a net margin of 30.00% and a return on equity of 61.28%. The firm 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 company posted $4.81 EPS. The business’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. Sell-side analysts predict that Adobe Inc. will post 16.65 EPS for the current fiscal year.

Key Stories Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe launched Firefly QuickCut, a one?click AI video editing feature that can turn raw clips into a first cut — a meaningful product expansion for Creative Cloud that could boost adoption among video creators and prosumers. Adobe’s New Firefly QuickCut Gives Video Editors a Starting Point
• Positive Sentiment: Bullish analyst/commentary argue ADBE can recover to materially higher levels (one note outlines a $330 path), citing durable profit margins, subscription pricing power and AI monetization potential. This provides a constructive narrative for value-seeking investors. How Adobe Stock Rises To $330
• Positive Sentiment: Valuation-focused views note Adobe trading near ~15x earnings, framing the pullback as a potential long-term buying opportunity if AI execution and subscription retention remain strong. Adobe Stock Is Trading at 15x Earnings
• Neutral Sentiment: Some research notes large upside potential (claimed ~71%) but also highlights recent price?target cuts — a mixed signal that leaves near?term direction tied to execution and broader software sentiment. Adobe Inc. (ADBE)’s Upside Potential at 71%
• Neutral Sentiment: Options-focused writeups show active strategies (e.g., an iron?condor yielding high returns), indicating elevated volatility expectations but not signalling directional consensus. 1 Picture-Perfect Short Iron Condor Trade Returning 35% on Adobe Stock Now
• Neutral Sentiment: Reported short?interest data is noisy/ambiguous in recent feeds, so positioning metrics are unclear and shouldn’t be over?interpreted today.
• Negative Sentiment: Jefferies and similar market moves have cut price targets (e.g., Jefferies lowered its target to $290 from $400), and such cuts have triggered near?term selling pressure. Adobe Inc. (ADBE)’s Upside Potential at 71%
• Negative Sentiment: Competition and AI advancements from Big Tech (e.g., Google’s Gemini image upgrades) are being cited as direct pressure on Adobe’s image/creative franchise, amplifying the sector?wide “AI scare trade.” Google Gemini Image Upgrade Pressures Adobe, Figma Shares
• Negative Sentiment: Commentary from pundits and analysts (including warnings that Adobe’s moat may be under threat) and broader software selloffs tied to AI concerns keep downside risk elevated until durable monetization from new AI tools is demonstrated. Adobe (ADBE) Doesn’t Have The Moat That It Thinks

Insider Transactions at Adobe

In other Adobe news, CFO Daniel Durn sold 1,646 shares of Adobe stock in a transaction dated Tuesday, January 27th. The stock was sold at an average price of $294.85, for a total value of $485,323.10. Following the sale, the chief financial officer owned 41,995 shares of the company’s stock, valued at $12,382,225.75. This trade represents a 3.77% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Company insiders own 0.16% of the company’s stock.

Analyst Upgrades and Downgrades

ADBE has been the subject of a number of analyst reports. Morgan Stanley lowered their target price on shares of Adobe from $450.00 to $425.00 and set an “equal weight” rating for the company in a report on Thursday, December 11th. Barclays reaffirmed an “overweight” rating and set a $415.00 price objective on shares of Adobe in a research note on Friday, December 5th. DA Davidson reiterated a “buy” rating and issued a $500.00 price objective on shares of Adobe in a report on Thursday, December 11th. Wolfe Research cut their target price on Adobe from $450.00 to $440.00 and set an “outperform” rating on the stock in a research note on Thursday, December 11th. Finally, Royal Bank Of Canada restated an “outperform” rating and set a $430.00 target price on shares of Adobe in a research report on Thursday, December 11th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, twelve have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $392.76.

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.