Diamond Hill Capital Management Inc. Increases Stock Position in Adobe Inc. $ADBE

Diamond Hill Capital Management Inc. boosted its holdings in Adobe Inc. (NASDAQ:ADBE) by 20.6% in the third quarter, Holdings Channel reports. The institutional investor owned 1,024,473 shares of the software company’s stock after acquiring an additional 174,891 shares during the quarter. Adobe accounts for approximately 1.7% of Diamond Hill Capital Management Inc.’s investment portfolio, making the stock its 22nd biggest holding. Diamond Hill Capital Management Inc.’s holdings in Adobe were worth $361,383,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Norges Bank purchased a new stake in shares of Adobe in the second quarter worth about $2,029,950,000. Invesco Ltd. lifted its stake in Adobe by 16.1% in the 2nd quarter. Invesco Ltd. now owns 4,407,162 shares of the software company’s stock worth $1,705,043,000 after purchasing an additional 610,215 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in Adobe by 17.6% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 3,664,151 shares of the software company’s stock valued at $1,417,587,000 after purchasing an additional 548,903 shares during the period. Charles Schwab Investment Management Inc. boosted its holdings in Adobe by 0.8% in the 2nd quarter. Charles Schwab Investment Management Inc. now owns 2,922,630 shares of the software company’s stock valued at $1,130,707,000 after purchasing an additional 24,333 shares during the period. Finally, Schroder Investment Management Group grew its position in shares of Adobe by 3.8% during the 2nd quarter. Schroder Investment Management Group now owns 2,137,724 shares of the software company’s stock valued at $827,043,000 after purchasing an additional 78,186 shares in the last quarter. Institutional investors own 81.79% of the company’s stock.

Insider Buying and Selling

In related news, CFO Daniel Durn sold 1,646 shares of Adobe stock in a transaction on Tuesday, January 27th. The shares were sold at an average price of $294.85, for a total value of $485,323.10. Following the sale, the chief financial officer owned 41,995 shares in the company, valued at $12,382,225.75. The trade was a 3.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.16% of the stock is owned by insiders.

Adobe Price Performance

Shares of Adobe stock opened at $268.38 on Friday. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.00 and a quick ratio of 1.00. Adobe Inc. has a one year low of $264.04 and a one year high of $465.70. The business’s 50 day simple moving average is $324.53 and its two-hundred day simple moving average is $338.64. The stock has a market capitalization of $110.17 billion, a P/E ratio of 16.06, a price-to-earnings-growth ratio of 1.06 and a beta of 1.51.

Adobe (NASDAQ:ADBE) last released its quarterly earnings data on Wednesday, December 10th. The software company reported $5.50 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.40 by $0.10. The firm had revenue of $6.19 billion for the quarter, compared to analysts’ expectations of $6.11 billion. Adobe had a net margin of 30.00% and a return on equity of 61.28%. The company’s revenue for the quarter was up 10.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $4.81 earnings per share. 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 forecast that Adobe Inc. will post 16.65 EPS for the current year.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe reversed its decision to discontinue Adobe Animate and moved the app to maintenance mode after heavy creator backlash — a move that removes a key PR overhang and reduces the risk of customer churn in creative communities. After backlash, Adobe cancels Adobe Animate shutdown and puts app on ‘maintenance mode’
• Positive Sentiment: An analyst action: Piper Sandler moved Adobe to a “hold” rating, which supports the argument that sellside views are stabilizing after the stock’s large decline. This is modestly supportive for near-term sentiment. Zacks / TickerReport coverage of Piper Sandler upgrade
• Positive Sentiment: Some outlets highlight a bull case and recent session gains (coverage noting intraday upticks), reflecting that selective buyers are viewing the recent pullback as a buying opportunity. Adobe Systems (ADBE) Increases Despite Market Slip
• Neutral Sentiment: Analyst surveys note Adobe has underperformed the market over the past year but sentiment is “cautiously optimistic” — this keeps expectations mixed and suggests analysts see recovery potential but not an imminent re-rating. Adobe Stock: Analyst Estimates & Ratings
• Neutral Sentiment: Long-form takeaways assessing whether the >50% decline since 2024 is a buying opportunity provide frameworks for investors (marketing spend up, AI strategy emphasized), but they are opinion pieces rather than new corporate developments. Adobe (ADBE) Stock: Is This 50% Drop a Buying Opportunity?
• Neutral Sentiment: A legislative note lists Adobe among companies likely to engage with major U.S. sporting events (sponsorship/promotional opportunities). This is peripheral and not an immediate earnings driver. New Bill: Senator Jacky Rosen introduces S. 3676
• Negative Sentiment: Wider software-sector selloff tied to accelerating AI competition and fresh model releases (plus new Anthropic tools) has pressured large software names, amplifying fear of AI-driven disruption and prompting sector rotation out of higher-multiple names like Adobe. Software Stocks Selloff: What’s Behind the Rout?
• Negative Sentiment: Initial reports that Adobe would end Animate sparked creator outrage and likely contributed to short-term selling before the reversal — a reminder that product missteps or communication errors can meaningfully affect sentiment. Adobe Ends Animate, Abandoning Millions Of Artists Amid AI Push
• Negative Sentiment: Headline pieces summarizing why ADBE is trading down reiterate the mix of macro/sector weakness, AI competition fears, and company-specific PR noise that are keeping buyers cautious. Adobe (ADBE) stock trades down, here is why

Wall Street Analyst Weigh In

ADBE has been the topic of a number of recent analyst reports. Mizuho lowered their price objective on Adobe from $410.00 to $390.00 and set an “outperform” rating on the stock in a research report on Thursday, November 20th. Wells Fargo & Company lowered their price target on Adobe from $470.00 to $420.00 and set an “overweight” rating on the stock in a report on Thursday, November 20th. BMO Capital Markets lowered Adobe from an “outperform” rating to a “market perform” rating and cut their price objective for the stock from $400.00 to $375.00 in a report on Friday, January 9th. Oppenheimer cut shares of Adobe from an “outperform” rating to a “market perform” rating in a research report on Tuesday, January 13th. Finally, Royal Bank Of Canada reiterated an “outperform” rating and set a $430.00 target price on shares of Adobe in a research report on Thursday, December 11th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, eleven have given a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, Adobe currently has an average rating of “Hold” and a consensus price target of $401.13.

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.