Adobe Inc. $ADBE Shares Sold by Grace & Mercy Foundation Inc.

Grace & Mercy Foundation Inc. trimmed its holdings in Adobe Inc. (NASDAQ:ADBE) by 43.9% in the 3rd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 66,320 shares of the software company’s stock after selling 52,000 shares during the period. Adobe accounts for approximately 5.0% of Grace & Mercy Foundation Inc.’s holdings, making the stock its 8th largest position. Grace & Mercy Foundation Inc.’s holdings in Adobe were worth $23,394,000 at the end of the most recent quarter.

Several other hedge funds also recently modified their holdings of ADBE. Focus Partners Wealth raised its holdings in shares of Adobe by 4.2% during the 3rd quarter. Focus Partners Wealth now owns 48,647 shares of the software company’s stock valued at $17,078,000 after purchasing an additional 1,957 shares in the last quarter. Destination Wealth Management lifted its stake in shares of Adobe by 11.2% in the 3rd quarter. Destination Wealth Management now owns 804 shares of the software company’s stock valued at $284,000 after purchasing an additional 81 shares during the last quarter. Distillate Capital Partners LLC boosted its holdings in Adobe by 23.2% in the third quarter. Distillate Capital Partners LLC now owns 77,261 shares of the software company’s stock worth $27,264,000 after purchasing an additional 14,549 shares in the last quarter. Circle Wealth Management LLC acquired a new position in Adobe during the third quarter worth $430,000. Finally, Clark Capital Management Group Inc. increased its position in Adobe by 40.7% during the third quarter. Clark Capital Management Group Inc. now owns 104,930 shares of the software company’s stock worth $37,014,000 after buying an additional 30,346 shares during the last quarter. Institutional investors and hedge funds own 81.79% of the company’s stock.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on ADBE. Piper Sandler reduced their price target on Adobe from $330.00 to $280.00 and set a “neutral” rating for the company in a research report on Friday. Wall Street Zen raised Adobe from a “hold” rating to a “buy” rating in a report on Saturday, March 7th. Mizuho cut their price objective on Adobe from $340.00 to $315.00 and set an “outperform” rating on the stock in a research note on Friday. Jefferies Financial Group reduced their target price on Adobe from $400.00 to $290.00 and set a “hold” rating for the company in a report on Monday, February 23rd. Finally, Morgan Stanley decreased their target price on Adobe from $425.00 to $365.00 and set an “equal weight” rating for the company in a research report on Friday. One research 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 issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $347.85.

Insider Activity at Adobe

In other news, CFO Daniel Durn sold 1,646 shares of the stock in a transaction that occurred on Tuesday, January 27th. The stock was sold at an average price of $294.85, for a total value of $485,323.10. Following the completion of the sale, the chief financial officer directly owned 41,995 shares of the company’s stock, valued at approximately $12,382,225.75. This represents a 3.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.20% of the stock is currently owned by company insiders.

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

Adobe Trading Down 7.6%

Shares of NASDAQ:ADBE opened at $249.32 on Monday. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.00 and a current ratio of 0.91. The stock’s 50-day moving average is $283.88 and its 200-day moving average is $322.76. The company has a market cap of $102.35 billion, a P/E ratio of 14.52, a P/E/G ratio of 0.98 and a beta of 1.53. Adobe Inc. has a 52-week low of $244.28 and a 52-week high of $422.95.

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, topping the consensus estimate of $5.87 by $0.19. Adobe had a return on equity of 64.48% and a net margin of 29.48%.The business had revenue of $6.40 billion during the quarter, compared to analysts’ expectations of $6.28 billion. During the same quarter in the previous year, the firm earned $5.08 EPS. The firm’s revenue was up 12.0% compared to the same quarter last year. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. Equities research analysts predict that Adobe Inc. will post 16.65 earnings per share for the current year.

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.