California Public Employees Retirement System Sells 15,583 Shares of Adobe Inc. $ADBE

California Public Employees Retirement System lowered its position in shares of Adobe Inc. (NASDAQ:ADBE) by 1.4% in the first quarter, Holdings Channel reports. The institutional investor owned 1,097,690 shares of the software company’s stock after selling 15,583 shares during the period. California Public Employees Retirement System’s holdings in Adobe were worth $266,826,000 as of its most recent filing with the SEC.

A number of other institutional investors also recently modified their holdings of the business. State Street Corp increased its position in Adobe by 1.7% during the third quarter. State Street Corp now owns 20,632,009 shares of the software company’s stock worth $7,277,941,000 after acquiring an additional 352,448 shares during the period. Geode Capital Management LLC boosted its holdings in Adobe by 3.7% in the 4th quarter. Geode Capital Management LLC now owns 11,531,678 shares of the software company’s stock valued at $4,027,170,000 after purchasing an additional 414,049 shares during the period. Norges Bank acquired a new position in shares of Adobe during the 4th quarter worth approximately $2,275,165,000. Arrowstreet Capital Limited Partnership grew its position in shares of Adobe by 10.9% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 6,228,503 shares of the software company’s stock worth $2,179,914,000 after purchasing an additional 611,358 shares in the last quarter. Finally, Invesco Ltd. increased its holdings in shares of Adobe by 6.2% during the fourth quarter. Invesco Ltd. now owns 5,119,025 shares of the software company’s stock worth $1,791,607,000 after purchasing an additional 297,337 shares during the period. Institutional investors own 81.79% of the company’s stock.

Key Stories Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Multiple reports highlight Adobe’s attractive valuation, with some investors viewing the selloff as creating a buying opportunity and even raising the possibility that the company could become a takeover target. Is Adobe (ADBE) a Takeover Target? Rumors Are Swirling
• Positive Sentiment: Adobe was compared favorably with Autodesk on revenue trends, with Adobe showing larger scale and consistent quarter-over-quarter growth over the last eight quarters, which supports the case for durable business momentum. Adobe vs. Autodesk: What Revenue Trends Reveal About These Software Stocks
• Positive Sentiment: Several pieces frame Adobe as a potential beneficiary of the market’s reassessment of software stocks, arguing that AI is pressuring recurring-revenue models but that strong companies like Adobe are adapting and may emerge as relative winners. How to Find the Bargains in the Software Stock Wreckage
• Positive Sentiment: Commentary on Adobe’s “compelling valuation” and “generational buying opportunity” suggests investors are increasingly seeing the stock as undervalued despite intensifying competition. Adobe: Compelling Valuation Even Amid Intensifying Competition
• Positive Sentiment: Broader software-sector analysis also points to Adobe as having real competitive moats that AI may not easily replace, reinforcing confidence in the company’s long-term positioning. Alpha Buying: The Real Moats AI Can’t Replace
• Neutral Sentiment: Additional coverage on e-commerce and digital media trends mentions Adobe’s AI-related efforts, including its acquisition of Rephrase.AI, but the article is more about industry innovation than a direct catalyst for the stock. E-Commerce Update – AI Transforming Digital Retail Through Innovation and Connectivity
• Negative Sentiment: One article noted that an open-source browser-based PDF toolkit can replace Adobe Acrobat, highlighting ongoing competitive pressure in one of Adobe’s core product areas. I replaced Adobe Acrobat with a 10x faster, browser-based open-source PDF toolkit

Insider Activity at Adobe

In other news, CAO Jillian Forusz sold 755 shares of the company’s stock in a transaction on Thursday, April 30th. The shares were sold at an average price of $246.25, for a total transaction of $185,918.75. Following the completion of the transaction, the chief accounting officer directly owned 3,521 shares in the company, valued at approximately $867,046.25. This represents a 17.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Daniel Durn sold 1,336 shares of the stock in a transaction on Monday, April 20th. The shares were sold at an average price of $248.02, for a total value of $331,354.72. Following the completion of the transaction, the chief financial officer owned 42,833 shares of the company’s stock, valued at $10,623,440.66. The trade was a 3.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 77,091 shares of company stock valued at $18,782,773 over the last three months. 0.20% of the stock is currently owned by corporate insiders.

Adobe Stock Performance

Adobe stock opened at $237.25 on Friday. Adobe Inc. has a 12-month low of $190.12 and a 12-month high of $376.16. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 0.42. The business’s 50-day moving average price is $228.58 and its two-hundred day moving average price is $256.19. The stock has a market cap of $94.31 billion, a PE ratio of 13.57, a P/E/G ratio of 0.79 and a beta of 1.43.

Adobe (NASDAQ:ADBE) last posted its earnings results on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, topping analysts’ consensus estimates of $5.82 by $0.14. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The firm had revenue of $6.62 billion during the quarter, compared to analysts’ expectations of $6.45 billion. During the same quarter in the prior year, the business earned $5.06 earnings per share. The business’s revenue for the quarter was up 12.7% compared to the same quarter last year. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. As a group, analysts expect that Adobe Inc. will post 19.81 earnings per share for the current fiscal year.

Adobe announced that its board has authorized a stock buyback program on Tuesday, April 21st that permits the company to buyback $25.00 billion in outstanding shares. This buyback authorization permits the software company to repurchase up to 24.9% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on ADBE. Freedom Capital downgraded shares of Adobe from a “strong-buy” rating to a “hold” rating in a research report on Friday, June 12th. Weiss Ratings restated a “sell (d+)” rating on shares of Adobe in a research note on Wednesday, June 3rd. Jefferies Financial Group dropped their price objective on Adobe from $290.00 to $230.00 and set a “hold” rating for the company in a report on Friday, June 12th. Barclays cut their target price on Adobe from $275.00 to $250.00 and set an “equal weight” rating for the company in a research report on Friday, June 12th. Finally, UBS Group set a $365.00 target price on Adobe in a report on Friday, June 12th. Six investment analysts have rated the stock with a Buy rating, twenty-two have given a Hold rating and five have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $275.00.

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.