Adobe (NASDAQ:ADBE) Rating Lowered to Hold at Wall Street Zen

Adobe (NASDAQ:ADBE) was downgraded by equities research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Saturday, Wall Street Zen reports.

A number of other brokerages have also recently commented on ADBE. Robert W. Baird raised their price objective on Adobe from $230.00 to $250.00 and gave the company a “neutral” rating in a research note on Friday, September 11th. BNP Paribas Exane lowered their price objective on shares of Adobe from $265.00 to $225.00 and set a “neutral” rating on the stock in a report on Friday, June 12th. DA Davidson raised their price objective on shares of Adobe from $250.00 to $290.00 and gave the company a “buy” rating in a research note on Monday, September 14th. Jefferies Financial Group reduced their price objective on shares of Adobe from $285.00 to $275.00 and set a “hold” rating for the company in a report on Friday, September 11th. Finally, Griffin Securities reduced their price objective on shares of Adobe from $405.00 to $380.00 in a report on Friday, June 12th. Eleven equities research analysts have rated the stock with a Buy rating, nineteen have assigned a Hold rating and six have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $286.68.

Adobe Price Performance

Adobe stock opened at $242.27 on Friday. The company has a market capitalization of $94.29 billion, a PE ratio of 13.52, a PEG ratio of 0.84 and a beta of 1.42. Adobe has a 12-month low of $190.12 and a 12-month high of $363.70. The firm’s fifty day moving average is $258.20 and its 200 day moving average is $242.85. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 0.41.

Adobe (NASDAQ:ADBE) last posted its quarterly earnings results on Thursday, September 10th. The software company reported $6.13 EPS for the quarter, topping analysts’ consensus estimates of $6.08 by $0.05. Adobe had a net margin of 28.05% and a return on equity of 65.65%. The business had revenue of $6.76 billion during the quarter, compared to analysts’ expectations of $6.69 billion. During the same period last year, the company posted $5.31 earnings per share. The business’s quarterly revenue was up 12.9% on a year-over-year basis. Adobe has set its Q4 2026 guidance at 6.300-6.350 EPS and its FY 2026 guidance at 24.450-24.500 EPS. As a group, sell-side analysts predict that Adobe will post 20.01 EPS for the current fiscal year.

Insider Activity at Adobe

In related news, CEO Shantanu Narayen sold 74,500 shares of the stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $251.56, for a total value of $18,741,220.00. Following the completion of the sale, the chief executive officer directly owned 289,224 shares of the company’s stock, valued at approximately $72,757,189.44. This represents a 20.48% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CAO Jillian Forusz sold 416 shares of the firm’s stock in a transaction 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 transaction, the chief accounting officer owned 3,824 shares in the company, valued at approximately $1,010,797.92. This trade represents a 9.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 125,416 shares of company stock worth $31,454,466. 0.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Adobe

A number of hedge funds have recently bought and sold shares of the company. BlackRock Inc. purchased a new position in shares of Adobe in the 2nd quarter valued at approximately $8,437,821,000. Johnson Financial Group Inc. purchased a new stake in Adobe in the second quarter worth $2,289,000. Biondo Investment Advisors LLC purchased a new stake in Adobe in the second quarter worth $2,647,000. Summit Global Investments purchased a new stake in Adobe in the second quarter worth $1,401,000. Finally, Tejara Capital Ltd bought a new position in Adobe in the second quarter worth $3,461,000. 81.79% of the stock is owned by hedge funds and other institutional investors.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Technical rebound and valuation support: Adobe’s recent recovery appears to reflect bargain hunting and technical buying after a steep selloff. At roughly 13.5 times earnings and with a PEG ratio below 1, some investors view the stock as inexpensive relative to its profitability and long-term franchise. What’s Going On With Adobe Stock Thursday?
• Positive Sentiment: Fundamentals remain solid: Adobe recently exceeded quarterly earnings and revenue estimates, with revenue rising 12.9% year over year. Its high margins, strong return on equity and cash-generating business provide support for the shares despite slower-growth concerns.
• Positive Sentiment: NHL partnership expands visibility: Adobe became the NHL’s official Creative, Marketing and AI Partner, giving its tools and Firefly platform exposure to a global audience and potentially supporting customer engagement. Adobe Joins the NHL
• Neutral Sentiment: Immigration-program suspension: The U.S. Labor Department suspended Adobe from the PERM green-card program while it reviews alleged visa-system abuse. The move could complicate hiring and increase regulatory or reputational risk, although investors initially treated Adobe more favorably than Microsoft. U.S. Suspends Microsoft and Adobe From Green-Card Labor Program
• Neutral Sentiment: Short-interest data appears inconsistent: The report lists October short interest at zero shares and a zero-day short-interest ratio while describing a significant increase, suggesting a possible data error rather than a reliable trading signal.
• Negative Sentiment: AI-generated open-source clones increase competitive fears: A developer reportedly used AI to create free, open-source alternatives to Adobe Creative Cloud applications. Although the projects’ commercial impact is uncertain, they reinforce concerns that AI could weaken Adobe’s pricing power and subscription model. Software Is Over: Bold AI Developer Takes Aim at Adobe
• Negative Sentiment: Subscription-growth worries persist: Analysts remain concerned about weaker new-subscription sales and the possibility of slower growth compressing Adobe’s valuation multiple. The stock has significantly underperformed the broader market over the past year.

Adobe Company Profile

Adobe Inc (NASDAQ: ADBE) is a global software company that develops tools for creating, managing, delivering and analyzing digital content. Its products serve creative professionals, marketers, enterprises, students and individual consumers across a broad range of industries and geographies.

Adobe’s Creative Cloud portfolio includes applications such as Photoshop, Illustrator, Premiere Pro, InDesign and Adobe Express for graphic design, photography, video, illustration and digital content creation.