Adobe (NASDAQ:ADBE) Trading Down 2.6% – Time to Sell?

Adobe Inc. (NASDAQ:ADBE)’s share price was down 2.6% on Friday . The company traded as low as $295.42 and last traded at $296.12. Approximately 8,430,205 shares changed hands during mid-day trading, an increase of 75% from the average daily volume of 4,818,644 shares. The stock had previously closed at $304.09.

Analyst Ratings Changes

Several research firms have recently commented on ADBE. Wolfe Research decreased their target price on shares of Adobe from $450.00 to $440.00 and set an “outperform” rating for the company in a research report on Thursday, December 11th. Wells Fargo & Company decreased their price objective on Adobe from $470.00 to $420.00 and set an “overweight” rating for the company in a report on Thursday, November 20th. The Goldman Sachs Group initiated coverage on Adobe in a report on Monday. They issued a “sell” rating and a $290.00 target price on the stock. Weiss Ratings reiterated a “hold (c-)” rating on shares of Adobe in a report on Monday, December 29th. Finally, Cowen reissued a “hold” rating on shares of Adobe in a research report on Monday, December 8th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, twelve have assigned a Hold rating and four have issued a Sell rating to the company. According to MarketBeat, Adobe has an average rating of “Hold” and an average target price of $402.85.

Adobe Price Performance

The stock has a market cap of $123.96 billion, a P/E ratio of 17.72, a P/E/G ratio of 1.20 and a beta of 1.53. The business has a 50 day simple moving average of $335.36 and a 200-day simple moving average of $348.11. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.02 and a current ratio of 1.00.

Adobe (NASDAQ:ADBE) last released its earnings results on Wednesday, December 10th. The software company reported $5.50 EPS for the quarter, topping analysts’ consensus estimates of $5.40 by $0.10. The company 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 business’s revenue for the quarter was up 10.5% compared to the same quarter last year. During the same period in the previous year, the business 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. On average, sell-side analysts forecast that Adobe Inc. will post 16.65 EPS for the current year.

Insider Buying and Selling at Adobe

In other news, CAO Jillian Forusz sold 149 shares of the firm’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 completion of the sale, the chief accounting officer owned 3,426 shares in the company, valued at $1,157,576.88. This trade represents a 4.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.16% of the stock is owned by corporate insiders.

Institutional Trading of Adobe

Several hedge funds have recently made changes to their positions in ADBE. Brighton Jones LLC raised its stake in Adobe by 2.1% in the 4th quarter. Brighton Jones LLC now owns 8,068 shares of the software company’s stock valued at $3,588,000 after acquiring an additional 167 shares during the period. Thurston Springer Miller Herd & Titak Inc. increased its stake in shares of Adobe by 91.4% in the second quarter. Thurston Springer Miller Herd & Titak Inc. now owns 222 shares of the software company’s stock worth $86,000 after purchasing an additional 106 shares in the last quarter. Balefire LLC bought a new stake in shares of Adobe in the second quarter valued at approximately $358,000. Baron Wealth Management LLC purchased a new stake in shares of Adobe during the 2nd quarter valued at approximately $251,000. Finally, Sivia Capital Partners LLC lifted 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 valued at $926,000 after buying an additional 486 shares in the last quarter. 81.79% of the stock is currently owned by institutional investors.

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.