Zhang Financial LLC Has $2.68 Million Stock Position in Adobe Inc. $ADBE

Zhang Financial LLC grew its holdings in shares of Adobe Inc. (NASDAQ:ADBE) by 121.1% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 11,041 shares of the software company’s stock after acquiring an additional 6,048 shares during the quarter. Zhang Financial LLC’s holdings in Adobe were worth $2,684,000 at the end of the most recent quarter.

A number of other large investors also recently modified their holdings of the company. State Street Corp increased its holdings in Adobe by 1.7% in the 3rd quarter. State Street Corp now owns 20,632,009 shares of the software company’s stock worth $7,277,941,000 after purchasing an additional 352,448 shares in the last quarter. Geode Capital Management LLC raised its holdings in Adobe by 3.7% during the 4th quarter. Geode Capital Management LLC now owns 11,531,678 shares of the software company’s stock worth $4,027,170,000 after purchasing an additional 414,049 shares during the last quarter. Norges Bank bought a new position in Adobe during the fourth quarter worth $2,275,165,000. Arrowstreet Capital Limited Partnership lifted its stake in shares of Adobe by 10.9% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 6,228,503 shares of the software company’s stock valued at $2,179,914,000 after purchasing an additional 611,358 shares during the period. Finally, Invesco Ltd. lifted its stake in Adobe by 6.2% in the fourth quarter. Invesco Ltd. now owns 5,119,025 shares of the software company’s stock valued at $1,791,607,000 after buying an additional 297,337 shares during the period. 81.79% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other news, Director David A. Ricks bought 10,000 shares of Adobe stock in a transaction that occurred on Thursday, June 25th. The shares were acquired at an average price of $194.51 per share, with a total value of $1,945,100.00. Following the completion of the purchase, the director directly owned 17,655 shares in the company, valued at $3,434,074.05. The trade was a 130.63% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Shantanu Narayen sold 75,000 shares of the stock in a transaction dated Tuesday, April 28th. The shares were sold at an average price of $243.54, for a total value of $18,265,500.00. Following the transaction, the chief executive officer owned 359,538 shares in the company, valued at $87,561,884.52. This trade represents a 17.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 77,091 shares of company stock worth $18,782,773 over the last three months. Company insiders own 0.20% of the company’s stock.

Adobe Price Performance

ADBE stock opened at $237.25 on Friday. The firm has a 50 day moving average of $228.58 and a 200-day moving average of $256.19. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 0.42. Adobe Inc. has a 12 month low of $190.12 and a 12 month high of $376.16. The firm has a market capitalization of $94.31 billion, a P/E ratio of 13.57, a price-to-earnings-growth ratio of 0.79 and a beta of 1.43.

Adobe (NASDAQ:ADBE) last released its quarterly earnings results on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, beating 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 analyst estimates of $6.45 billion. During the same period in the previous year, the business earned $5.06 EPS. The business’s revenue for the quarter was up 12.7% on a year-over-year basis. 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, sell-side analysts predict that Adobe Inc. will post 19.81 earnings per share for the current fiscal year.

Adobe announced that its board has authorized a share repurchase plan on Tuesday, April 21st that authorizes the company to repurchase $25.00 billion in shares. This repurchase authorization authorizes the software company to buy up to 24.9% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s management believes its stock is undervalued.

More Adobe News

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

Analysts Set New Price Targets

ADBE has been the topic of several research reports. Wolfe Research lowered shares of Adobe from an “outperform” rating to a “peer perform” rating in a report on Friday, June 12th. Bank of America reissued an “underperform” rating and issued a $190.00 price target on shares of Adobe in a research report on Tuesday, July 7th. Wall Street Zen cut shares of Adobe from a “buy” rating to a “hold” rating in a research report on Saturday, July 4th. KeyCorp cut their price target on shares of Adobe from $235.00 to $195.00 and set an “underweight” rating on the stock in a report on Friday, June 12th. Finally, Barclays reduced their price objective on Adobe from $275.00 to $250.00 and set an “equal weight” rating for the company in a report on Friday, June 12th. Six research analysts have rated the stock with a Buy rating, twenty-two have issued a Hold rating and five have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $275.00.

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.