Arrowstreet Capital Limited Partnership Purchases 611,358 Shares of Adobe Inc. $ADBE

Arrowstreet Capital Limited Partnership lifted its stake in shares of Adobe Inc. (NASDAQ:ADBE) by 10.9% in the 4th quarter, HoldingsChannel.com reports. The fund owned 6,228,503 shares of the software company’s stock after acquiring an additional 611,358 shares during the quarter. Adobe comprises 1.3% of Arrowstreet Capital Limited Partnership’s holdings, making the stock its 9th biggest position. Arrowstreet Capital Limited Partnership’s holdings in Adobe were worth $2,179,914,000 as of its most recent filing with the Securities & Exchange Commission.

Several other large investors have also modified their holdings of the stock. Brighton Jones LLC raised its holdings in Adobe by 2.1% during the fourth quarter. Brighton Jones LLC now owns 8,068 shares of the software company’s stock valued at $3,588,000 after buying an additional 167 shares in the last quarter. Sivia Capital Partners LLC raised its holdings in Adobe by 25.5% during the second 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. United Bank increased its stake in shares of Adobe by 12.8% in the second quarter. United Bank now owns 3,773 shares of the software company’s stock worth $1,460,000 after purchasing an additional 428 shares during the period. Schnieders Capital Management LLC. increased its stake in shares of Adobe by 7.8% in the second quarter. Schnieders Capital Management LLC. now owns 2,630 shares of the software company’s stock worth $1,017,000 after purchasing an additional 190 shares during the period. Finally, Gamco Investors INC. ET AL increased its stake in shares of Adobe by 190.6% in the second quarter. Gamco Investors INC. ET AL now owns 2,764 shares of the software company’s stock worth $1,069,000 after purchasing an additional 1,813 shares during the period. 81.79% of the stock is owned by institutional investors.

Adobe Stock Down 6.8%

NASDAQ:ADBE opened at $204.02 on Friday. The stock’s fifty day moving average price is $244.54 and its two-hundred day moving average price is $278.61. Adobe Inc. has a 52-week low of $196.90 and a 52-week high of $405.00. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.91 and a current ratio of 0.91. The company has a market cap of $82.46 billion, a price-to-earnings ratio of 11.67, a P/E/G ratio of 0.80 and a beta of 1.42.

Adobe (NASDAQ:ADBE) last posted its quarterly earnings data 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. Adobe had a return on equity of 64.99% and a net margin of 28.69%.The firm had revenue of $6.62 billion for the quarter, compared to the consensus estimate of $6.45 billion. During the same quarter in the prior year, the business earned $5.06 EPS. The business’s revenue for the quarter was up 12.7% compared to the same quarter last year. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. On average, analysts anticipate that Adobe Inc. will post 19.14 EPS for the current year.

Adobe declared that its Board of Directors has authorized a stock buyback plan on Tuesday, April 21st that authorizes the company to repurchase $25.00 billion in shares. This repurchase authorization authorizes the software company to buy up to 24.9% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Key Stories Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe reported record Q2 revenue of $6.62 billion and EPS of $5.96, both above expectations, while also raising full-year revenue and earnings guidance. The company said AI-driven demand and stronger subscription spending supported results. Adobe Reports Record Q2 Results
• Positive Sentiment: Management highlighted accelerating adoption of Adobe’s AI tools, with AI-first annual recurring revenue topping $500 million, which supports the long-term growth case. Adobe Q2 Earnings Beat Estimates, Revenues Up Y/Y, Shares Fall
• Neutral Sentiment: Despite the beat, Adobe signaled a strategic shift toward freemium AI products and prioritizing user growth over immediate monetization, which adds uncertainty around near-term ARR growth. ADBE Q2 Earnings Call Centers on Freemium AI Push, Raised Outlook
• Negative Sentiment: Investors were rattled by the sudden departure of CFO Dan Durn, which adds to leadership uncertainty while Adobe is also in the middle of a CEO succession process. Adobe raises annual revenue forecast, CFO to exit
• Negative Sentiment: Wall Street reacted with multiple price-target cuts and downgrades, reflecting concerns that Adobe’s core growth may be decelerating and that AI monetization is still not proven. Leadership Exits, Decelerating Core Growth Cloud Adobe’s Earnings Beat

Analyst Upgrades and Downgrades

A number of analysts have weighed in on ADBE shares. The Goldman Sachs Group reduced their price target on shares of Adobe from $220.00 to $190.00 and set a “sell” rating for the company in a report on Friday. BMO Capital Markets lowered their price objective on Adobe from $285.00 to $230.00 and set a “market perform” rating on the stock in a research note on Friday. Robert W. Baird lowered their price objective on Adobe from $270.00 to $230.00 and set a “neutral” rating on the stock in a research note on Friday. Summit Redstone set a $350.00 price objective on Adobe in a research note on Friday, April 17th. Finally, Sanford C. Bernstein lowered their price objective on Adobe from $447.00 to $379.00 and set an “outperform” rating on the stock in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, twenty have issued a Hold rating and five have given a Sell rating to the company. According to MarketBeat.com, Adobe currently has a consensus rating of “Hold” and a consensus target price of $278.16.

Insider Activity

In related news, CFO Daniel Durn sold 1,336 shares of the firm’s stock in a transaction on Monday, April 20th. The stock was sold at an average price of $248.02, for a total transaction of $331,354.72. Following the sale, the chief financial officer owned 42,833 shares of the company’s stock, valued at approximately $10,623,440.66. This trade represents a 3.02% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CAO Jillian Forusz sold 755 shares of the firm’s stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $246.25, for a total value of $185,918.75. Following the sale, the chief accounting officer directly owned 3,521 shares in the company, valued at $867,046.25. The trade was a 17.66% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 77,091 shares of company stock valued at $18,782,773 in the last 90 days. 0.20% of the stock is owned by company insiders.

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.