Diamond Hill Capital Management LLC Investment Advisor Acquires Shares of 846,867 Adobe Inc. $ADBE

Diamond Hill Capital Management LLC Investment Advisor acquired a new position in Adobe Inc. (NASDAQ:ADBE) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 846,867 shares of the software company’s stock, valued at approximately $173,625,000. Adobe makes up 1.4% of Diamond Hill Capital Management LLC Investment Advisor’s investment portfolio, making the stock its 25th biggest position.

Other institutional investors and hedge funds have also recently modified their holdings of the company. State Street Corp raised its position in shares of Adobe by 1.7% in the 3rd quarter. State Street Corp now owns 20,632,009 shares of the software company’s stock worth $7,277,941,000 after acquiring an additional 352,448 shares in the last quarter. Geode Capital Management LLC boosted its position in shares of Adobe by 3.7% during the fourth quarter. Geode Capital Management LLC now owns 11,531,678 shares of the software company’s stock valued at $4,027,170,000 after purchasing an additional 414,049 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its position in shares of Adobe by 9.1% during the first quarter. Arrowstreet Capital Limited Partnership now owns 6,792,275 shares of the software company’s stock valued at $1,651,066,000 after purchasing an additional 563,772 shares in the last quarter. Norges Bank purchased a new stake in Adobe in the fourth quarter worth $2,275,165,000. Finally, Invesco Ltd. raised its holdings in Adobe by 6.2% in the fourth quarter. Invesco Ltd. now owns 5,119,025 shares of the software company’s stock worth $1,791,607,000 after purchasing an additional 297,337 shares in the last quarter. 81.79% of the stock is owned by hedge funds and other institutional investors.

Adobe Stock Performance

Shares of ADBE stock opened at $264.02 on Monday. The company has a market capitalization of $104.95 billion, a price-to-earnings ratio of 15.10, a price-to-earnings-growth ratio of 0.89 and a beta of 1.40. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.75 and a current ratio of 0.75. Adobe Inc. has a one year low of $190.12 and a one year high of $370.86. The company’s 50-day moving average is $228.64 and its 200 day moving average is $245.62.

Adobe (NASDAQ:ADBE) last issued its earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.82 by $0.14. The business had revenue of $6.62 billion during 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% compared to the same quarter last year. During the same period in the previous year, the company earned $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. Sell-side analysts expect that Adobe Inc. will post 19.81 EPS for the current fiscal year.

Adobe declared that its Board of Directors has initiated a share repurchase plan on Tuesday, April 21st that allows the company to buyback $25.00 billion in outstanding shares. This buyback authorization allows the software company to purchase up to 24.9% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity at Adobe

In other news, Director David A. Ricks acquired 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 25th. The stock was bought at an average cost of $194.51 per share, for a total transaction of $1,945,100.00. Following the acquisition, the director directly owned 17,655 shares in the company, 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 this link. Also, CAO Jillian Forusz sold 416 shares of the company’s stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $264.33, for a total value of $109,961.28. Following the completion of the transaction, the chief accounting officer directly owned 3,824 shares in the company, valued at $1,010,797.92. This trade represents a 9.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.20% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several equities analysts have commented on ADBE shares. Wall Street Zen lowered Adobe from a “buy” rating to a “hold” rating in a research report on Saturday, July 4th. Piper Sandler reduced their target price on shares of Adobe from $280.00 to $240.00 and set a “neutral” rating on the stock in a research report on Friday, June 12th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Adobe in a research note on Wednesday, June 3rd. BMO Capital Markets lowered their price target on shares of Adobe from $285.00 to $230.00 and set a “market perform” rating for the company in a research report on Friday, June 12th. Finally, Mizuho dropped their price objective on shares of Adobe from $270.00 to $245.00 and set a “neutral” rating on the stock in a research note on Friday, June 12th. Seven investment analysts have rated the stock with a Buy rating, twenty-one have issued a Hold rating and five have assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $269.81.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe’s AI business is showing stronger traction: the company has reported a series of record earnings, while AI-related revenue has reportedly tripled. That performance is helping challenge the view that generative AI will permanently weaken Adobe’s creative-software franchise. Adobe Stock Eyes Rebound. Is This a Golden AI Opportunity?
• Positive Sentiment: ADBE has recovered substantially from its 2026 low as investors rotate back into beaten-down software stocks. The rebound suggests some investors believe Adobe’s earnings power and AI product expansion are being undervalued. Adobe stock is taking off: Could a rumored Workday buyout push it higher?
• Neutral Sentiment: A rumored potential acquisition of Workday is being discussed as a possible catalyst, but there is no confirmed transaction. Any deal could expand Adobe’s enterprise software reach, while also introducing execution, financing, and integration risks. Adobe stock is taking off: Could a rumored Workday buyout push it higher?
• Neutral Sentiment: One strategy article recommends selling options to collect income while setting a lower potential purchase price for Adobe. This may appeal to bullish, income-oriented investors, but it is not a fundamental catalyst and reflects continued caution about the stock’s near-term path. ADBE Stock: Collect 12% While Setting A 30%-Off Buy Price
• Negative Sentiment: Adobe remains one of the most heavily punished large-cap software stocks after losing roughly one-third from its peak. Investors continue to question whether generative AI could erode demand for its core creative products, even as recent results have been strong. That unresolved concern likely helps explain the pressure on ADBE today. Adobe Stock Eyes Rebound. Is This a Golden AI Opportunity?

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.