Piper Sandler Issues Pessimistic Forecast for Adobe (NASDAQ:ADBE) Stock Price

Adobe (NASDAQ:ADBE) had its price objective cut by equities researchers at Piper Sandler from $280.00 to $240.00 in a report issued on Friday,Benzinga reports. The brokerage presently has a “neutral” rating on the software company’s stock. Piper Sandler’s price target would suggest a potential upside of 9.97% from the stock’s current price.

Other analysts have also recently issued research reports about the stock. Barclays set a $250.00 target price on shares of Adobe in a research note on Friday. KeyCorp restated an “underweight” rating on shares of Adobe in a research note on Friday. UBS Group upgraded shares of Adobe from a “neutral” rating to a “buy” rating in a research note on Friday. William Blair cut shares of Adobe from an “outperform” rating to a “market perform” rating in a research note on Thursday, March 26th. Finally, Wall Street Zen cut shares of Adobe from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, eighteen have issued a Hold rating and five have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Adobe presently has an average rating of “Hold” and a consensus price target of $306.85.

Adobe Stock Down 6.5%

Shares of NASDAQ:ADBE opened at $218.24 on Friday. The stock has a market cap of $88.21 billion, a P/E ratio of 12.71, a P/E/G ratio of 0.91 and a beta of 1.42. The firm has a fifty day moving average price of $245.29 and a 200 day moving average price of $279.13. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.91 and a quick ratio of 0.91. Adobe has a 1-year low of $218.09 and a 1-year high of $416.39.

Adobe (NASDAQ:ADBE) last issued its quarterly earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share for the quarter, topping analysts’ consensus estimates of $5.82 by $0.14. The firm had revenue of $6.62 billion during the quarter, compared to analysts’ expectations of $6.45 billion. Adobe had a net margin of 29.48% and a return on equity of 64.48%. Adobe’s quarterly revenue was up 12.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $5.06 EPS. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. Sell-side analysts predict that Adobe will post 19.14 EPS for the current year.

Adobe declared that its Board of Directors has initiated a share 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 reacquire up to 24.9% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s leadership believes its stock is undervalued.

Insider Activity

In other news, 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 value of $331,354.72. Following the completion of the transaction, the chief financial officer owned 42,833 shares in the company, valued at $10,623,440.66. This trade represents a 3.02% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Jillian Forusz sold 755 shares of the stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $246.25, for a total transaction of $185,918.75. Following the completion of the transaction, the chief accounting officer owned 3,521 shares of the company’s stock, valued at $867,046.25. This represents a 17.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 77,091 shares of company stock worth $18,782,773 in the last 90 days. 0.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Adobe

A number of large investors have recently made changes to their positions in ADBE. Willis Investment Counsel increased its holdings in Adobe by 138.9% during the 4th quarter. Willis Investment Counsel now owns 40,715 shares of the software company’s stock valued at $14,250,000 after acquiring an additional 23,671 shares in the last quarter. Victory Capital Management Inc. increased its holdings in Adobe by 112.6% during the 3rd quarter. Victory Capital Management Inc. now owns 1,341,410 shares of the software company’s stock valued at $469,467,000 after acquiring an additional 710,357 shares in the last quarter. Nicholas Company Inc. increased its holdings in Adobe by 7.6% during the 4th quarter. Nicholas Company Inc. now owns 174,626 shares of the software company’s stock valued at $61,117,000 after acquiring an additional 12,400 shares in the last quarter. Teacher Retirement System of Texas increased its holdings in Adobe by 13.4% during the 4th quarter. Teacher Retirement System of Texas now owns 215,611 shares of the software company’s stock valued at $75,462,000 after acquiring an additional 25,435 shares in the last quarter. Finally, Wealthfront Advisers LLC increased its holdings in Adobe by 13.2% during the 4th quarter. Wealthfront Advisers LLC now owns 55,179 shares of the software company’s stock valued at $19,312,000 after acquiring an additional 6,426 shares in the last quarter. Hedge funds and other institutional investors own 81.79% of the company’s stock.

Adobe News Summary

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe posted record second-quarter revenue of $6.62 billion and EPS of $5.96, both above expectations, while also raising full-year FY2026 revenue and earnings guidance. Management said AI tool adoption and higher subscription spending are supporting results. Adobe Reports Record Q2 Results
• Positive Sentiment: The company’s updated outlook topped Wall Street estimates for both Q3 and FY2026, suggesting Adobe still sees room for stronger revenue and profit growth even after a challenging year. Reuters: Adobe raises annual revenue forecast, CFO to exit
• Neutral Sentiment: Adobe is shifting toward a freemium AI strategy and pausing price hikes for now, aiming to boost user growth and engagement in the near term, but this could delay ARR expansion. Adobe pauses price hikes for short-term AI push
• Negative Sentiment: Shares are being weighed down by the sudden departure of CFO Dan Durn, adding to investor concerns about leadership stability as Adobe is also navigating CEO succession plans. Adobe Stock Drops As CFO Dan Durn Resigns
• Negative Sentiment: Broker reaction was cautious after earnings, with Stifel downgrading Adobe and cutting its price target, reflecting skepticism that the AI push will quickly translate into sustained growth. Stifel Downgrades Adobe Stock

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.