Adobe (NASDAQ:ADBE) Shares Down 2.6% – Here’s Why

Adobe Inc. (NASDAQ:ADBE) traded down 2.6% on Friday . The company traded as low as $295.42 and last traded at $296.12. 8,430,205 shares changed hands during trading, an increase of 75% from the average session volume of 4,818,644 shares. The stock had previously closed at $304.09.

Analyst Ratings Changes

Several research firms recently commented on ADBE. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $430.00 target price on shares of Adobe in a report on Thursday, December 11th. The Goldman Sachs Group began coverage on Adobe in a research report on Monday, January 12th. They issued a “sell” rating and a $290.00 price objective on the stock. Oppenheimer cut shares of Adobe from an “outperform” rating to a “market perform” rating in a research note on Tuesday. Weiss Ratings reiterated a “hold (c-)” rating on shares of Adobe in a research note on Monday, December 29th. Finally, Citigroup raised their price target on shares of Adobe from $366.00 to $387.00 and gave the company a “neutral” rating in a research report on Wednesday, December 17th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, twelve have assigned a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, Adobe has a consensus rating of “Hold” and an average target price of $402.85.

Adobe Price Performance

The company has a quick ratio of 1.02, a current ratio of 1.00 and a debt-to-equity ratio of 0.53. The company has a market capitalization of $123.96 billion, a price-to-earnings ratio of 17.72, a PEG ratio of 1.17 and a beta of 1.53. The stock’s 50-day simple moving average is $334.75 and its two-hundred day simple moving average is $347.17.

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

Insider Activity at Adobe

In other news, CAO Jillian Forusz sold 149 shares of the firm’s stock in a transaction that occurred on Friday, October 31st. The stock was sold at an average price of $337.88, for a total value of $50,344.12. Following the transaction, the chief accounting officer owned 3,426 shares in the company, valued at $1,157,576.88. This trade represents a 4.17% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.16% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in ADBE. Vanguard Group Inc. grew its holdings in Adobe by 0.8% in the 3rd quarter. Vanguard Group Inc. now owns 41,369,395 shares of the software company’s stock valued at $14,593,054,000 after buying an additional 344,816 shares in the last quarter. State Street Corp raised its holdings in shares of Adobe by 1.7% during 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 during the period. Arrowstreet Capital Limited Partnership boosted its position in shares of Adobe by 53.3% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company’s stock valued at $1,981,448,000 after acquiring an additional 1,952,994 shares during the last quarter. Norges Bank purchased a new stake in shares of Adobe in the second quarter valued at about $2,029,950,000. Finally, Amundi grew its holdings in shares of Adobe by 17.9% in the third quarter. Amundi now owns 4,888,283 shares of the software company’s stock valued at $1,711,583,000 after purchasing an additional 742,646 shares during the period. 81.79% of the stock is currently owned by institutional investors and hedge funds.

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.