Adobe (NASDAQ:ADBE) Trading Down 2.4% – Should You Sell?

Shares of Adobe Inc. (NASDAQ:ADBE) dropped 2.4% on Tuesday . The company traded as low as $292.93 and last traded at $297.42. Approximately 4,065,868 shares traded hands during trading, a decline of 17% from the average daily volume of 4,899,661 shares. The stock had previously closed at $304.72.

Analysts Set New Price Targets

ADBE has been the subject of a number of research analyst reports. Oppenheimer lowered Adobe from an “outperform” rating to a “market perform” rating in a report on Tuesday, January 13th. UBS Group cut their target price on shares of Adobe from $375.00 to $340.00 and set a “neutral” rating for the company in a research report on Monday. Barclays reiterated an “overweight” rating and set a $415.00 price target on shares of Adobe in a research note on Friday, December 5th. Robert W. Baird set a $350.00 target price on shares of Adobe in a report on Wednesday, January 14th. Finally, Mizuho decreased their price objective on shares of Adobe from $410.00 to $390.00 and set an “outperform” rating on the stock in a research report on Thursday, November 20th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, eleven have given a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $397.19.

Adobe Price Performance

The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.00 and a current ratio of 1.00. The firm has a fifty day simple moving average of $330.69 and a 200 day simple moving average of $343.59. The company has a market capitalization of $122.09 billion, a PE ratio of 17.80, a P/E/G ratio of 1.18 and a beta of 1.53.

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

Insider Activity

In other news, CAO Jillian Forusz sold 149 shares of the 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 transaction, the chief accounting officer directly owned 3,426 shares in the company, valued at approximately $1,157,576.88. This trade represents a 4.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.16% of the company’s stock.

Institutional Trading of Adobe

Several hedge funds have recently modified their holdings of ADBE. Riverbend Wealth Management LLC boosted its stake in Adobe by 1.8% in the third quarter. Riverbend Wealth Management LLC now owns 1,668 shares of the software company’s stock valued at $588,000 after acquiring an additional 29 shares in the last quarter. FSM Wealth Advisors LLC boosted its position in shares of Adobe by 1.1% in the 2nd quarter. FSM Wealth Advisors LLC now owns 2,644 shares of the software company’s stock worth $997,000 after purchasing an additional 30 shares in the last quarter. Intellus Advisors LLC grew its stake in Adobe by 1.6% during the 2nd quarter. Intellus Advisors LLC now owns 1,860 shares of the software company’s stock worth $720,000 after buying an additional 30 shares during the last quarter. Beacon Financial Advisory LLC increased its position in Adobe by 5.5% during the 3rd quarter. Beacon Financial Advisory LLC now owns 577 shares of the software company’s stock valued at $204,000 after buying an additional 30 shares in the last quarter. Finally, MCF Advisors LLC raised its stake in Adobe by 20.8% in the third quarter. MCF Advisors LLC now owns 174 shares of the software company’s stock valued at $61,000 after buying an additional 30 shares during the last quarter. 81.79% of the stock is owned by hedge funds and other 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.