Adobe (NASDAQ:ADBE) Reaches New 12-Month Low – Should You Sell?

Adobe Inc. (NASDAQ:ADBE) shares hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $310.55 and last traded at $309.7950, with a volume of 3905183 shares changing hands. The stock had previously closed at $327.65.

Adobe News Summary

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Retail investors remain active and bullish in some venues despite price weakness; articles note continued retail buying that could provide short‑term support. ADBE shares slip on analyst downgrades — but why is retail bullish?
• Positive Sentiment: Some bullish commentary argues Adobe remains an attractive long‑term opportunity based on its recurring revenue, margin profile and AI product positioning, which helps explain why some investors defend the shares. What Makes Adobe (ADBE) an Attractive Opportunity?
• Neutral Sentiment: Short‑interest report in the cycle shows anomalous/zero values (likely a data issue), so current short‑interest metrics aren’t providing clear directional clues. Finviz (short interest summary)
• Negative Sentiment: BMO downgraded ADBE to Market Perform and cut its PT to $375 from $400, saying near‑term catalysts are limited and expecting range‑bound shares. Adobe (ADBE) Downgraded as Analysts See Limited Near-Term Catalysts
• Negative Sentiment: Oppenheimer cut its rating (coverage notes and press coverage) — one of several firms trimming recommendations today — which amplified selling pressure. Adobe Shares Slide After Oppenheimer Downgrade
• Negative Sentiment: Goldman initiated coverage with a Sell and a $290 price target, signaling near‑term downside versus prior levels and adding to price‑target cuts piling up. ADBE assumed with a Sell at Goldman Sachs
• Negative Sentiment: Jefferies downgraded Adobe from Buy to Hold and cut its PT as part of a broader software‑sector re‑rating, citing rising competition and a tougher outlook for multiple software names. Jefferies Cautious on Adobe (ADBE)
• Negative Sentiment: Analyst commentary and pieces (TipRanks) highlight unusually pessimistic forecasts from some strategists — the most bearish views in years — which pressured sentiment and triggered headlines. Adobe Stock Drops as The Most Pessimistic Analyst Forecast Since 2013 Hits ADBE Shares
• Negative Sentiment: Competitive pressure from Apple’s lower‑cost creative app suite is receiving media attention as a potential longer‑term threat to Adobe’s Creative Cloud pricing/premium positioning. Apple Hits Adobe With an Affordable Creative App Suite
• Negative Sentiment: Shares hit a 52‑week low in intraday trading, reflecting the cumulative effect of downgrades, price‑target cuts and competition concerns. Adobe stock hits 52-week low at $311.55

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on ADBE shares. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $430.00 price objective on shares of Adobe in a research note on Thursday, December 11th. Citigroup increased their target price on shares of Adobe from $366.00 to $387.00 and gave the stock a “neutral” rating in a report on Wednesday, December 17th. UBS Group set a $487.00 price target on shares of Adobe in a report on Sunday, December 14th. Mizuho dropped their price objective on shares of Adobe from $410.00 to $390.00 and set an “outperform” rating for the company in a research note on Thursday, November 20th. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of Adobe in a research report on Monday, December 29th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, thirteen have given a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $406.44.

Adobe Trading Down 5.4%

The company has a debt-to-equity ratio of 0.53, a current ratio of 1.00 and a quick ratio of 1.02. The company has a market cap of $129.74 billion, a price-to-earnings ratio of 18.55, a price-to-earnings-growth ratio of 1.31 and a beta of 1.53. The business’s fifty day moving average price is $336.96 and its 200 day moving average price is $349.26.

Adobe (NASDAQ:ADBE) last announced its earnings results on Wednesday, December 10th. The software company reported $5.50 EPS for the quarter, beating the consensus estimate of $5.40 by $0.10. The business had revenue of $6.19 billion for the quarter, compared to analysts’ expectations of $6.11 billion. Adobe had a return on equity of 61.28% and a net margin of 30.00%.The firm’s revenue was up 10.5% on a year-over-year basis. During the same period in the prior year, the business posted $4.81 earnings per share. Adobe has set its Q1 2026 guidance at 5.850-5.900 EPS and its FY 2026 guidance at 23.300-23.500 EPS. Research analysts anticipate that Adobe Inc. will post 16.65 earnings per share for the current fiscal year.

Insider Buying and Selling at Adobe

In related news, CAO Jillian Forusz sold 149 shares of Adobe stock in a transaction on Friday, October 31st. The shares were sold at an average price of $337.88, for a total transaction of $50,344.12. Following the completion of the transaction, the chief accounting officer owned 3,426 shares of the company’s stock, valued at $1,157,576.88. This trade represents a 4.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.16% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Riverbend Wealth Management LLC boosted its stake in Adobe by 1.8% during the third quarter. Riverbend Wealth Management LLC now owns 1,668 shares of the software company’s stock worth $588,000 after acquiring an additional 29 shares in the last quarter. FSM Wealth Advisors LLC increased its holdings in shares of Adobe by 1.1% during the second quarter. FSM Wealth Advisors LLC now owns 2,644 shares of the software company’s stock valued at $997,000 after acquiring an additional 30 shares in the last quarter. Intellus Advisors LLC increased its holdings in shares of Adobe by 1.6% during the second quarter. Intellus Advisors LLC now owns 1,860 shares of the software company’s stock valued at $720,000 after acquiring an additional 30 shares in the last quarter. Beacon Financial Advisory LLC raised its position in shares of Adobe by 5.5% during the third quarter. Beacon Financial Advisory LLC now owns 577 shares of the software company’s stock worth $204,000 after purchasing an additional 30 shares during the period. Finally, MCF Advisors LLC lifted its holdings in shares of Adobe by 20.8% in the 3rd quarter. MCF Advisors LLC now owns 174 shares of the software company’s stock worth $61,000 after purchasing an additional 30 shares in the last quarter. 81.79% of the stock is owned by institutional investors.

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.