Adobe (NASDAQ:ADBE) Trading Down 1.5% – Time to Sell?

Adobe Inc. (NASDAQ:ADBE) fell 1.5% during trading on Friday . The company traded as low as $328.00 and last traded at $333.95. 3,243,966 shares were traded during trading, a decline of 17% from the average session volume of 3,894,242 shares. The stock had previously closed at $339.04.

Adobe News Summary

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Bullish investor write-up arguing Adobe is an undervalued, long-term compounder and urging accumulation based on its AI/product roadmap. Adobe: I’m Pounding The Table On This Unloved Compounder (Rating Upgrade)
• Positive Sentiment: Adobe expanded its AI capabilities via a multi‑year partnership with Runway to enhance Firefly video tools, supporting product differentiation and monetization of generative AI features. Adobe (ADBE) Partners With Runway to Expand Firefly AI Video Tools
• Positive Sentiment: Adobe exec coverage from CES highlights strategy on personalization and multi‑model AI integrations (Runway, 11 Labs), reinforcing the company’s roadmap to capture creative and marketing spend. Beyond Firefly: Adobe VP Allison Blais Discusses Integrating Runway, 11 Labs and the Future of Multi-Model AI
• Neutral Sentiment: Review of short‑term performance shows the stock has underperformed since the last earnings report; the piece outlines catalysts and risks that could move the stock next. Why Is Adobe (ADBE) Down 3.3% Since Last Earnings Report?
• Neutral Sentiment: Roundup of Wall Street research calls listing Adobe among top analyst actions for the day — informational context for market flow but not a single decisive call. Here Are Friday’s Top Wall Street Analyst Research Calls: Adobe, Airbnb, Altria, Crowdstrike…
• Negative Sentiment: BMO Capital Markets downgraded ADBE to Market Perform (from Outperform), citing rising competitive pressures — a near‑term catalyst for the share decline and reduced upside expectations. Adobe Stock Falls. Shares ‘Will Remain Range-Bound’ As Competition Heats Up, Analyst Says.
• Negative Sentiment: Commentary arguing Adobe’s competitive moat looks less secure as new AI entrants and specialized tools pressure pricing and share in creative/marketing workflows. Adobe’s Competitive Moat Looks Less Secure

Analysts Set New Price Targets

A number of research firms recently issued reports on ADBE. Citigroup raised their price objective on shares of Adobe from $366.00 to $387.00 and gave the stock a “neutral” rating in a report on Wednesday, December 17th. DA Davidson reissued a “buy” rating and set a $500.00 target price on shares of Adobe in a research report on Thursday, December 11th. BMO Capital Markets cut shares of Adobe from an “outperform” rating to a “market perform” rating and lowered their price target for the stock from $400.00 to $375.00 in a report on Friday. Jefferies Financial Group downgraded Adobe from a “buy” rating to a “hold” rating and dropped their price objective for the company from $500.00 to $400.00 in a research note on Monday. Finally, Royal Bank Of Canada reissued an “outperform” rating and issued a $430.00 target price on shares of Adobe in a research report on Thursday, December 11th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, twelve have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $410.92.

Adobe Stock Performance

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 company has a market capitalization of $139.79 billion, a PE ratio of 19.99, a PEG ratio of 1.33 and a beta of 1.53. The company has a 50-day moving average price of $337.28 and a two-hundred day moving average price of $350.48.

Adobe (NASDAQ:ADBE) last issued its quarterly earnings data on Wednesday, December 10th. The software company reported $5.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $5.40 by $0.10. The business had revenue of $6.19 billion for the quarter, compared to analysts’ expectations of $6.11 billion. Adobe had a return on equity of 61.28% and a net margin of 30.00%.The firm’s quarterly revenue was up 10.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $4.81 EPS. Adobe has set its Q1 2026 guidance at 5.850-5.900 EPS and its FY 2026 guidance at 23.300-23.500 EPS. Analysts predict that Adobe Inc. will post 16.65 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CAO Jillian Forusz sold 149 shares of the company’s stock in a transaction that occurred 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 sale, the chief accounting officer owned 3,426 shares of the company’s stock, valued at approximately $1,157,576.88. This represents a 4.17% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.16% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Measured Wealth Private Client Group LLC purchased a new position in Adobe during the third quarter worth about $26,000. KERR FINANCIAL PLANNING Corp purchased a new position in shares of Adobe during the third quarter worth about $27,000. LSV Asset Management grew its holdings in shares of Adobe by 350.0% during the second quarter. LSV Asset Management now owns 72 shares of the software company’s stock worth $28,000 after purchasing an additional 56 shares in the last quarter. Caitlin John LLC bought a new position in shares of Adobe in the third quarter worth approximately $28,000. Finally, Flaharty Asset Management LLC bought a new position in shares of Adobe during the 1st quarter valued at about $29,000. Institutional investors own 81.79% of the company’s stock.

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.