Adobe (NASDAQ:ADBE) Cut to Sell at Citigroup

Citigroup downgraded shares of Adobe (NASDAQ:ADBE) from a neutral rating to a sell rating in a research report released on Wednesday, Marketbeat.com reports. The brokerage currently has $207.00 price target on the software company’s stock, down from their previous price target of $250.00.

Other equities analysts have also issued reports about the company. JPMorgan Chase & Co. reduced their price target on Adobe from $340.00 to $315.00 and set an “overweight” rating on the stock in a research report on Friday, September 11th. BMO Capital Markets lifted their price objective on shares of Adobe from $230.00 to $270.00 and gave the stock a “market perform” rating in a research report on Friday, September 11th. Bank of America raised their target price on Adobe from $190.00 to $220.00 and gave the stock an “underperform” rating in a report on Wednesday, August 19th. Morgan Stanley reissued an “underweight” rating on shares of Adobe in a research note on Friday, September 11th. Finally, Jefferies Financial Group decreased their target price on shares of Adobe from $285.00 to $275.00 and set a “hold” rating on the stock in a research report on Friday, September 11th. Nine equities research analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and eight have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $282.52.

Adobe Stock Performance

NASDAQ:ADBE opened at $239.30 on Wednesday. Adobe has a 1-year low of $190.12 and a 1-year high of $362.71. The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 0.41. The stock’s 50-day moving average is $251.24 and its 200-day moving average is $249.62. The stock has a market cap of $93.14 billion, a P/E ratio of 13.44, a price-to-earnings-growth ratio of 0.88 and a beta of 1.37.

Adobe (NASDAQ:ADBE) last announced its earnings results on Thursday, September 10th. The software company reported $6.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.08 by $0.05. Adobe had a return on equity of 65.65% and a net margin of 28.05%. The firm had revenue of $6.76 billion during the quarter, compared to analyst estimates of $6.69 billion. During the same quarter in the prior year, the company earned $5.31 EPS. The business’s revenue was up 12.9% compared to the same quarter last year. Adobe has set its Q4 2026 guidance at 6.300-6.350 EPS and its FY 2026 guidance at 24.450-24.500 EPS. Equities research analysts anticipate that Adobe will post 20.01 earnings per share for the current year.

Insider Transactions at Adobe

In related news, CEO Shantanu Narayen sold 50,500 shares of the firm’s stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $249.57, for a total value of $12,603,285.00. Following the sale, the chief executive officer owned 238,724 shares of the company’s stock, valued at $59,578,348.68. This trade represents a 17.46% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 0.20% of the company’s stock.

Institutional Trading of Adobe

Several institutional investors have recently made changes to their positions in ADBE. Investment Research & Advisory Group Inc. grew its stake in Adobe by 185.7% during the third quarter. Investment Research & Advisory Group Inc. now owns 100 shares of the software company’s stock worth $25,000 after buying an additional 65 shares in the last quarter. Dunhill Financial LLC acquired a new stake in shares of Adobe during the second quarter worth about $95,000. Latitude Advisors LLC purchased a new position in Adobe in the third quarter worth approximately $29,000. North Point Portfolio Managers Corp OH acquired a new stake in Adobe in the third quarter valued at $30,000. Finally, Bullock Wealth Management Group grew its position in Adobe by 468.2% in the third quarter. Bullock Wealth Management Group now owns 125 shares of the software company’s stock valued at $30,000 after acquiring an additional 103 shares in the last quarter. 81.79% of the stock is currently owned by institutional investors and hedge funds.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe is bringing its CX Enterprise Coworker marketing agent to ChatGPT, Claude, Gemini, Microsoft Copilot and other platforms. The move could extend Adobe’s reach and help it compete as businesses adopt AI tools. Adobe brings CX Enterprise Coworker to major AI platforms
• Neutral Sentiment: Adobe is adjusting its strategy in response to AI-related risks. The strategic shift may help it adapt, though the articles do not establish whether it will translate into stronger growth or results. Adobe Stock: Buy or Sell?
• Negative Sentiment: Citi downgraded Adobe to Sell and set a $207 price target, citing the risk of a “hard reset” and a weaker fiscal 2027 outlook. The downgrade adds to concerns about Adobe’s growth trajectory; a related report says the stock is down 29% in 2026. Adobe Is Down 29% This Year. Time to Sell or Buy More?

Adobe Company Profile

Adobe Inc develops software and services for creating, managing and delivering digital content. Its products serve creative professionals, businesses, marketers and individual users around the world.

Adobe’s Digital Media offerings include Creative Cloud applications such as Photoshop, Illustrator, Premiere Pro and InDesign, along with Acrobat tools for creating, editing and signing PDF documents. The company also provides generative AI capabilities through Adobe Firefly and related features in its creative products.

Through its Digital Experience business, Adobe provides tools for managing digital marketing, customer experiences, analytics and commerce.