Adobe (NASDAQ:ADBE) Stock Rating Lowered by Wall Street Zen

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

A number of other brokerages have also issued reports on ADBE. Morgan Stanley cut their price target on shares of Adobe from $450.00 to $425.00 and set an “equal weight” rating on the stock in a research note on Thursday, December 11th. Weiss Ratings restated a “hold (c-)” rating on shares of Adobe in a report on Monday, December 29th. Stifel Nicolaus reduced their target price on shares of Adobe from $480.00 to $450.00 and set a “buy” rating on the stock in a report on Tuesday, December 9th. UBS Group set a $487.00 price target on shares of Adobe in a research report on Sunday, December 14th. Finally, Robert W. Baird set a $350.00 price target on shares of Adobe in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, twelve have issued a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $402.85.

Adobe Stock Down 2.6%

Shares of NASDAQ ADBE opened at $296.12 on Friday. 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 business’s 50 day moving average is $334.75 and its two-hundred day moving average is $346.95. Adobe has a 52-week low of $295.42 and a 52-week high of $465.70. The firm has a market cap of $123.96 billion, a price-to-earnings ratio of 17.72, a PEG ratio of 1.17 and a beta of 1.53.

Adobe (NASDAQ:ADBE) last released its quarterly earnings results on Wednesday, December 10th. The software company reported $5.50 EPS for the quarter, topping the consensus estimate of $5.40 by $0.10. The business had revenue of $6.19 billion during the quarter, compared to analyst estimates of $6.11 billion. Adobe had a return on equity of 61.28% and a net margin of 30.00%.The company’s quarterly revenue was up 10.5% on a year-over-year basis. During the same period last 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 predict that Adobe will post 16.65 EPS for the current year.

Insider Activity at Adobe

In related news, CAO Jillian Forusz sold 149 shares of the business’s 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 in the company, valued at approximately $1,157,576.88. The trade was a 4.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 0.16% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. Brighton Jones LLC increased its stake in Adobe by 2.1% in the fourth quarter. Brighton Jones LLC now owns 8,068 shares of the software company’s stock valued at $3,588,000 after purchasing an additional 167 shares during the last quarter. Sivia Capital Partners LLC boosted its holdings in shares of Adobe by 25.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company’s stock valued at $926,000 after buying an additional 486 shares in the last quarter. Assenagon Asset Management S.A. boosted its holdings in shares of Adobe by 308.1% in the 2nd quarter. Assenagon Asset Management S.A. now owns 3,109,436 shares of the software company’s stock valued at $1,202,979,000 after buying an additional 2,347,562 shares in the last quarter. Essex Savings Bank grew its position in shares of Adobe by 30.5% in the 2nd quarter. Essex Savings Bank now owns 5,350 shares of the software company’s stock valued at $2,070,000 after buying an additional 1,250 shares during the last quarter. Finally, Marshall & Sullivan Inc. WA raised its stake in Adobe by 1.1% during the 2nd quarter. Marshall & Sullivan Inc. WA now owns 11,620 shares of the software company’s stock worth $4,496,000 after acquiring an additional 125 shares in the last quarter. 81.79% of the stock is owned by institutional investors and hedge funds.

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.