Adobe (NASDAQ:ADBE) Rating Lowered to “Hold” at Phillip Securities

Adobe (NASDAQ:ADBE) was downgraded by stock analysts at Phillip Securities from a “strong-buy” rating to a “hold” rating in a research report issued on Monday,Zacks.com reports.

Several other research firms have also recently issued reports on ADBE. Robert W. Baird cut their target price on Adobe from $270.00 to $230.00 and set a “neutral” rating for the company in a research report on Friday, June 12th. Jefferies Financial Group cut their target price on shares of Adobe from $290.00 to $230.00 and set a “hold” rating for the company in a research note on Friday, June 12th. Sanford C. Bernstein reduced their price target on shares of Adobe from $447.00 to $379.00 and set an “outperform” rating on the stock in a report on Friday, June 12th. Royal Bank Of Canada decreased their price target on shares of Adobe from $350.00 to $285.00 and set an “outperform” rating on the stock in a research note on Monday, June 8th. Finally, Freedom Capital lowered Adobe from a “strong-buy” rating to a “hold” rating in a research report on Friday, June 12th. Five research analysts have rated the stock with a Buy rating, twenty-two have given a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $278.16.

Adobe Price Performance

NASDAQ ADBE opened at $206.43 on Monday. The company’s 50 day moving average is $235.73 and its two-hundred day moving average is $268.37. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 0.42. The stock has a market cap of $82.06 billion, a price-to-earnings ratio of 11.81, a PEG ratio of 0.71 and a beta of 1.42. Adobe has a 12 month low of $190.12 and a 12 month high of $392.58.

Adobe (NASDAQ:ADBE) last announced its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, beating the consensus estimate of $5.82 by $0.14. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The firm had revenue of $6.62 billion for the quarter, compared to the consensus estimate of $6.45 billion. During the same period last year, the firm earned $5.06 EPS. The company’s revenue was up 12.7% on a year-over-year basis. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. As a group, research analysts anticipate that Adobe will post 19.8 earnings per share for the current year.

Adobe declared that its Board of Directors has approved a share repurchase program on Tuesday, April 21st that allows the company to repurchase $25.00 billion in shares. This repurchase authorization allows the software company to repurchase up to 24.9% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling at Adobe

In other news, CEO Shantanu Narayen sold 75,000 shares of the company’s stock in a transaction dated Tuesday, April 28th. The shares were sold at an average price of $243.54, for a total transaction of $18,265,500.00. Following the sale, the chief executive officer directly owned 359,538 shares in the company, valued at approximately $87,561,884.52. This represents a 17.26% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Daniel Durn sold 1,336 shares of the stock in a transaction dated Monday, April 20th. The shares were sold at an average price of $248.02, for a total transaction of $331,354.72. Following the completion of the transaction, the chief financial officer directly owned 42,833 shares of the company’s stock, valued at approximately $10,623,440.66. The trade was a 3.02% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 77,091 shares of company stock valued at $18,782,773. Corporate insiders own 0.20% of the company’s stock.

Hedge Funds Weigh In On Adobe

A number of institutional investors and hedge funds have recently modified their holdings of ADBE. Brighton Jones LLC lifted its holdings in shares of Adobe by 2.1% in the 4th quarter. Brighton Jones LLC now owns 8,068 shares of the software company’s stock worth $3,588,000 after acquiring an additional 167 shares during the last quarter. Sivia Capital Partners LLC boosted its stake in shares of Adobe by 25.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company’s stock worth $926,000 after purchasing an additional 486 shares during the period. United Bank grew its holdings in Adobe by 12.8% during the 2nd quarter. United Bank now owns 3,773 shares of the software company’s stock valued at $1,460,000 after purchasing an additional 428 shares during the last quarter. Schnieders Capital Management LLC. raised its position in Adobe by 7.8% in the 2nd 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 lifted its stake in 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 last quarter. Hedge funds and other institutional investors own 81.79% of the company’s stock.

Key Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe is expanding its AI strategy with new upgrades across Firefly, Creative Cloud, GenStudio and CX Enterprise, plus a LiveRamp integration for commerce media networks, reinforcing its push to make agentic AI a core part of its platform. Adobe’s Agentic AI Push and Russell Index Shift Might Change The Case For Investing In Adobe (ADBE)
• Positive Sentiment: Recent commentary says ADBE has the edge over Pegasystems as an AI software pick, citing GenAI strength, valuation, price performance and analyst sentiment. Adobe vs. Pegasystems: Which AI Software Stock Is the Better Buy?
• Positive Sentiment: Phillip Securities reiterated a Buy rating on Adobe and set a $385 price target, adding to bullish analyst support for the stock. Phillip Securities Maintains Buy Rating on Adobe (ADBE) Stock
• Positive Sentiment: Adobe’s data showing stronger-than-expected online spending during Amazon’s Prime Day helped validate its e-commerce analytics relevance, indirectly highlighting demand for Adobe Analytics. Amazon climbs as Adobe data points to stronger-than-expected Prime Day demand
• Neutral Sentiment: Adobe was added to several Russell value and defensive benchmarks, which may support passive demand for the shares but is not a fundamental catalyst by itself. Adobe’s Agentic AI Push and Russell Index Shift Might Change The Case For Investing In Adobe (ADBE)
• Negative Sentiment: Some investors remain concerned that AI tools from newer rivals could pressure long-term growth across software names, and Adobe’s stock has already been hit hard this year amid that valuation reset. Are NOW, CRM, WDAY, and ADBE stocks bargains after their valuation reset?

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.