Adobe (NASDAQ:ADBE) Hits New 12-Month Low – Should You Sell?

Shares of Adobe Inc. (NASDAQ:ADBE) hit a new 52-week low during trading on Tuesday . The company traded as low as $262.95 and last traded at $266.90, with a volume of 6568061 shares trading hands. The stock had previously closed at $268.38.

Analysts Set New Price Targets

A number of analysts recently weighed in on ADBE shares. Barclays reaffirmed an “overweight” rating and set a $415.00 price target on shares of Adobe in a research report on Friday, December 5th. The Goldman Sachs Group initiated coverage on Adobe in a research report on Monday, January 12th. They issued a “sell” rating and a $290.00 target price for the company. Weiss Ratings lowered Adobe from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, February 2nd. Wells Fargo & Company reduced their price target on Adobe from $470.00 to $420.00 and set an “overweight” rating on the stock in a research report on Thursday, November 20th. Finally, Jefferies Financial Group cut Adobe from a “buy” rating to a “hold” rating and decreased their price target for the stock from $500.00 to $400.00 in a report on Monday, January 5th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, eleven have given a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $401.13.

Adobe Price Performance

The business has a fifty day moving average of $323.41 and a 200 day moving average of $337.66. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.00 and a quick ratio of 1.00. The stock has a market cap of $109.56 billion, a PE ratio of 15.97, a P/E/G ratio of 1.06 and a beta of 1.51.

Adobe (NASDAQ:ADBE) last announced its earnings results 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. Adobe had a return on equity of 61.28% and a net margin of 30.00%.The company had revenue of $6.19 billion for the quarter, compared to analyst estimates of $6.11 billion. During the same period in the prior year, the company posted $4.81 EPS. Adobe’s quarterly revenue 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. Sell-side analysts anticipate that Adobe Inc. will post 16.65 earnings per share for the current year.

Insiders Place Their Bets

In other Adobe news, CFO Daniel Durn sold 1,646 shares of the firm’s stock in a transaction on Tuesday, January 27th. The shares were sold at an average price of $294.85, for a total transaction of $485,323.10. Following the completion of the transaction, the chief financial officer directly owned 41,995 shares of the company’s stock, valued at $12,382,225.75. This trade represents a 3.77% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.16% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Adobe

Hedge funds have recently bought and sold shares of the company. CX Institutional grew its stake in shares of Adobe by 72.9% in the 3rd quarter. CX Institutional now owns 27,922 shares of the software company’s stock worth $9,849,000 after purchasing an additional 11,769 shares during the last quarter. Wright Investors Service Inc. lifted its stake in Adobe by 114.4% during the third quarter. Wright Investors Service Inc. now owns 9,919 shares of the software company’s stock valued at $3,499,000 after purchasing an additional 5,293 shares during the last quarter. Federated Hermes Inc. boosted its holdings in Adobe by 185.1% during the third quarter. Federated Hermes Inc. now owns 898,408 shares of the software company’s stock worth $316,913,000 after buying an additional 583,275 shares in the last quarter. Lathrop Investment Management Co. grew its position in Adobe by 2.8% in the second quarter. Lathrop Investment Management Co. now owns 26,544 shares of the software company’s stock worth $10,269,000 after buying an additional 718 shares during the last quarter. Finally, Jones Financial Companies Lllp grew its position in Adobe by 43.8% in the third quarter. Jones Financial Companies Lllp now owns 106,598 shares of the software company’s stock worth $38,309,000 after buying an additional 32,448 shares during the last quarter. 81.79% of the stock is currently owned by institutional investors and hedge funds.

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.