Marathon Capital Management Purchases New Stake in Adobe Inc. $ADBE

Marathon Capital Management acquired a new position in shares of Adobe Inc. (NASDAQ:ADBE) in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 12,457 shares of the software company’s stock, valued at approximately $4,394,000.

Other hedge funds have also added to or reduced their stakes in the company. Vanguard Group Inc. boosted its stake in Adobe by 0.8% in the third quarter. Vanguard Group Inc. now owns 41,369,395 shares of the software company’s stock valued at $14,593,054,000 after acquiring an additional 344,816 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its stake in shares of Adobe by 53.3% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company’s stock worth $1,981,448,000 after purchasing an additional 1,952,994 shares during the last quarter. Norges Bank purchased a new stake in shares of Adobe during the 2nd quarter worth approximately $2,029,950,000. Invesco Ltd. raised its holdings in shares of Adobe by 9.4% in the 3rd quarter. Invesco Ltd. now owns 4,821,688 shares of the software company’s stock worth $1,700,850,000 after purchasing an additional 414,526 shares during the period. Finally, Legal & General Group Plc raised its holdings in shares of Adobe by 1.6% in the 3rd quarter. Legal & General Group Plc now owns 3,142,035 shares of the software company’s stock worth $1,108,353,000 after purchasing an additional 48,578 shares during the period. Institutional investors own 81.79% of the company’s stock.

Adobe Price Performance

ADBE stock opened at $249.32 on Friday. The firm has a 50 day simple moving average of $283.88 and a two-hundred day simple moving average of $323.22. The stock has a market cap of $102.35 billion, a PE ratio of 14.52, a P/E/G ratio of 1.06 and a beta of 1.53. Adobe Inc. has a one year low of $244.28 and a one year high of $422.95. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.00 and a quick ratio of 1.00.

Adobe (NASDAQ:ADBE) last posted its quarterly earnings data on Thursday, March 12th. The software company reported $6.06 earnings per share for the quarter, beating the consensus estimate of $5.87 by $0.19. Adobe had a net margin of 29.48% and a return on equity of 64.23%. The firm had revenue of $6.40 billion for the quarter, compared to analysts’ expectations of $6.28 billion. During the same quarter last year, the company posted $5.08 EPS. The business’s quarterly revenue was up 12.0% on a year-over-year basis. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. On average, analysts predict that Adobe Inc. will post 16.65 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the company. KeyCorp reduced their price objective on Adobe from $310.00 to $235.00 and set an “underweight” rating for the company in a report on Friday. BMO Capital Markets lowered their target price on Adobe from $375.00 to $285.00 and set a “market perform” rating on the stock in a research note on Friday. Sanford C. Bernstein set a $447.00 price target on Adobe and gave the company an “outperform” rating in a research report on Friday. Weiss Ratings downgraded Adobe from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, March 6th. Finally, TD Cowen decreased their price objective on Adobe from $400.00 to $325.00 and set a “hold” rating for the company in a report on Tuesday. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, twelve have assigned a Hold rating and five have given a Sell rating to the company. According to MarketBeat.com, Adobe currently has a consensus rating of “Hold” and a consensus price target of $347.85.

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Record Q1 results and AI traction — Adobe posted above?consensus Q1 revenue and EPS and highlighted rapid AI-first ARR growth; management framed the quarter as an AI?led acceleration, which supports the company’s long?term revenue mix and margins. Adobe Delivers Record Q1 Results
• Neutral Sentiment: Guidance shows upside but raises questions — Adobe’s FY26 EPS range and Q2 outlook exceeded consensus, yet investors parsed the details (ARR cadence, freemium strategy) for sustainability before rewarding the stock. Adobe Q1 earnings & guidance
• Neutral Sentiment: Short?interest figures reported inconsistently — publicly posted short data showed anomalous/zero values (NaN/0), so current short?squeeze risk or bearish positioning is unclear.
• Negative Sentiment: DOJ settlement adds immediate cost and reputational overhang — Adobe agreed to a $150M package (roughly $75M cash + $75M in free services) to resolve claims about hard?to?cancel subscriptions, creating a headline liability and consumer?facing remediation burden. Adobe agrees to pay $150 million to resolve alleged violations
• Negative Sentiment: CEO succession uncertainty — Shantanu Narayen announced he will step down once a successor is named (he will remain board chair), creating near?term leadership uncertainty at a critical time for Adobe’s AI strategy and execution. Shantanu Narayen Announces Decision to Transition as Adobe’s CEO
• Negative Sentiment: Analyst downgrades and lower targets amplify selling — Several firms cut price targets or moved to neutral/equal?weight, citing CEO transition and mixed ARR trends, which pressured sentiment and triggered further mark?downs. These Analysts Cut Their Forecasts On Adobe Following Q1 Earnings

Insider Buying and Selling

In other Adobe news, CFO Daniel Durn sold 1,646 shares of the firm’s stock in a transaction dated Tuesday, January 27th. The stock was sold at an average price of $294.85, for a total transaction of $485,323.10. Following the sale, the chief financial officer owned 41,995 shares in the company, valued at $12,382,225.75. This trade represents a 3.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.20% of the stock is currently owned by corporate insiders.

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.