Zhang Financial LLC Raises Stock Holdings in Adobe Inc. $ADBE

Zhang Financial LLC raised its position in Adobe Inc. (NASDAQ:ADBE) by 121.1% during the first quarter, Holdings Channel.com reports. The fund owned 11,041 shares of the software company’s stock after purchasing an additional 6,048 shares during the quarter. Zhang Financial LLC’s holdings in Adobe were worth $2,684,000 at the end of the most recent quarter.

Several other hedge funds have also recently made changes to their positions in the business. Willis Investment Counsel raised its holdings in Adobe by 138.9% in the fourth quarter. Willis Investment Counsel now owns 40,715 shares of the software company’s stock worth $14,250,000 after purchasing an additional 23,671 shares in the last quarter. Nicholas Company Inc. raised its holdings in Adobe by 7.6% in the fourth quarter. Nicholas Company Inc. now owns 174,626 shares of the software company’s stock worth $61,117,000 after buying an additional 12,400 shares during the last quarter. Teacher Retirement System of Texas raised its holdings in Adobe by 13.4% in the 4th quarter. Teacher Retirement System of Texas now owns 215,611 shares of the software company’s stock worth $75,462,000 after acquiring an additional 25,435 shares during the last quarter. Wealthfront Advisers LLC raised its stake in shares of Adobe by 13.2% in the fourth quarter. Wealthfront Advisers LLC now owns 55,179 shares of the software company’s stock worth $19,312,000 after purchasing an additional 6,426 shares during the last quarter. Finally, True North Advisors LLC lifted its stake in Adobe by 301.1% during the 4th quarter. True North Advisors LLC now owns 6,493 shares of the software company’s stock valued at $2,273,000 after acquiring an additional 4,874 shares during the period. 81.79% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other Adobe news, Director David A. Ricks purchased 10,000 shares of the company’s stock in a transaction dated Thursday, June 25th. The shares were acquired at an average price of $194.51 per share, for a total transaction of $1,945,100.00. Following the completion of the purchase, the director owned 17,655 shares of the company’s stock, valued at approximately $3,434,074.05. The trade was a 130.63% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Daniel Durn sold 1,336 shares of the business’s stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $248.02, for a total transaction of $331,354.72. Following the sale, the chief financial officer directly owned 42,833 shares in the company, valued at approximately $10,623,440.66. This represents a 3.02% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 77,091 shares of company stock valued at $18,782,773 in the last ninety days. 0.20% of the stock is currently owned by insiders.

Adobe Trading Up 0.8%

Shares of NASDAQ ADBE opened at $237.25 on Friday. The company has a market cap of $94.31 billion, a price-to-earnings ratio of 13.57, a PEG ratio of 0.79 and a beta of 1.43. Adobe Inc. has a fifty-two week low of $190.12 and a fifty-two week high of $376.16. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.75 and a current ratio of 0.75. The business’s 50 day moving average price is $228.58 and its 200-day moving average price is $256.19.

Adobe (NASDAQ:ADBE) last posted its quarterly earnings results on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, topping analysts’ consensus estimates of $5.82 by $0.14. The firm had revenue of $6.62 billion for the quarter, compared to analysts’ expectations of $6.45 billion. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The business’s revenue for the quarter was up 12.7% on a year-over-year basis. During the same period in the prior year, the business posted $5.06 earnings per share. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. On average, sell-side analysts expect that Adobe Inc. will post 19.81 earnings per share for the current year.

Adobe declared that its Board of Directors has authorized a stock buyback program on Tuesday, April 21st that allows the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization allows the software company to buy up to 24.9% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s management believes its shares are undervalued.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on ADBE. Mizuho lowered their price target on Adobe from $270.00 to $245.00 and set a “neutral” rating on the stock in a report on Friday, June 12th. Summit Redstone set a $350.00 price target on shares of Adobe in a report on Friday, April 17th. William Blair lowered Adobe from an “outperform” rating to a “market perform” rating in a research note on Thursday, March 26th. Freedom Capital lowered shares of Adobe from a “strong-buy” rating to a “hold” rating in a research report on Friday, June 12th. Finally, Oppenheimer restated a “market perform” rating on shares of Adobe in a report on Friday, June 12th. Six equities research analysts have rated the stock with a Buy rating, twenty-two have assigned a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $275.00.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Multiple reports highlight Adobe’s attractive valuation, with some investors viewing the selloff as creating a buying opportunity and even raising the possibility that the company could become a takeover target. Is Adobe (ADBE) a Takeover Target? Rumors Are Swirling
• Positive Sentiment: Adobe was compared favorably with Autodesk on revenue trends, with Adobe showing larger scale and consistent quarter-over-quarter growth over the last eight quarters, which supports the case for durable business momentum. Adobe vs. Autodesk: What Revenue Trends Reveal About These Software Stocks
• Positive Sentiment: Several pieces frame Adobe as a potential beneficiary of the market’s reassessment of software stocks, arguing that AI is pressuring recurring-revenue models but that strong companies like Adobe are adapting and may emerge as relative winners. How to Find the Bargains in the Software Stock Wreckage
• Positive Sentiment: Commentary on Adobe’s “compelling valuation” and “generational buying opportunity” suggests investors are increasingly seeing the stock as undervalued despite intensifying competition. Adobe: Compelling Valuation Even Amid Intensifying Competition
• Positive Sentiment: Broader software-sector analysis also points to Adobe as having real competitive moats that AI may not easily replace, reinforcing confidence in the company’s long-term positioning. Alpha Buying: The Real Moats AI Can’t Replace
• Neutral Sentiment: Additional coverage on e-commerce and digital media trends mentions Adobe’s AI-related efforts, including its acquisition of Rephrase.AI, but the article is more about industry innovation than a direct catalyst for the stock. E-Commerce Update – AI Transforming Digital Retail Through Innovation and Connectivity
• Negative Sentiment: One article noted that an open-source browser-based PDF toolkit can replace Adobe Acrobat, highlighting ongoing competitive pressure in one of Adobe’s core product areas. I replaced Adobe Acrobat with a 10x faster, browser-based open-source PDF toolkit

Adobe 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.