Letko Brosseau & Associates Inc. Sells 9,414 Shares of Adobe Inc. $ADBE

Letko Brosseau & Associates Inc. cut its stake in shares of Adobe Inc. (NASDAQ:ADBE) by 4.0% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 226,696 shares of the software company’s stock after selling 9,414 shares during the quarter. Adobe accounts for about 1.3% of Letko Brosseau & Associates Inc.’s holdings, making the stock its 28th biggest holding. Letko Brosseau & Associates Inc.’s holdings in Adobe were worth $79,341,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors have also recently made changes to their positions in the business. Vanguard Group Inc. raised its stake in shares of Adobe by 0.8% during the third quarter. Vanguard Group Inc. now owns 41,369,395 shares of the software company’s stock worth $14,593,054,000 after acquiring an additional 344,816 shares in the last quarter. State Street Corp raised its stake in shares of 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 in the last quarter. Geode Capital Management LLC raised its stake in shares of Adobe by 3.7% during the fourth quarter. Geode Capital Management LLC now owns 11,531,678 shares of the software company’s stock worth $4,027,170,000 after acquiring an additional 414,049 shares in the last quarter. Norges Bank purchased a new position in shares of Adobe during the fourth quarter worth approximately $2,275,165,000. Finally, Arrowstreet Capital Limited Partnership raised its stake in shares of Adobe by 53.3% during the third quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company’s stock worth $1,981,448,000 after acquiring an additional 1,952,994 shares in the last quarter. 81.79% of the stock is owned by hedge funds and other institutional investors.

Adobe Stock Down 2.9%

Shares of NASDAQ ADBE opened at $237.88 on Wednesday. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.47. Adobe Inc. has a 52 week low of $224.13 and a 52 week high of $419.82. The firm’s fifty day moving average is $245.94 and its 200 day moving average is $280.44. The company has a market cap of $96.15 billion, a price-to-earnings ratio of 13.85, a PEG ratio of 0.96 and a beta of 1.42.

Adobe (NASDAQ:ADBE) last issued its earnings results on Thursday, March 12th. The software company reported $6.06 EPS for the quarter, topping the consensus estimate of $5.87 by $0.19. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The company had revenue of $6.40 billion for the quarter, compared to the consensus estimate of $6.28 billion. During the same period in the previous year, the firm earned $5.08 earnings per share. The firm’s revenue for the quarter was up 12.0% on a year-over-year basis. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. On average, equities research analysts expect that Adobe Inc. will post 19.14 earnings per share for the current year.

Adobe declared that its Board of Directors has initiated a share buyback plan on Tuesday, April 21st that authorizes the company to buyback $25.00 billion in outstanding shares. This buyback authorization authorizes the software company to purchase up to 24.9% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s management believes its shares are undervalued.

Trending Headlines about Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe’s Firefly and GenStudio products are still seen as key AI growth drivers, and investors are watching for signs that these tools can help reignite revenue growth. Should You Buy, Sell or Hold Adobe Stock Before Q2 Earnings?
• Positive Sentiment: Some analysts remain constructive enough to raise price targets, suggesting there is still confidence in Adobe’s long-term cash flow and product franchise. Adobe Falls 23% YTD As Analysts Raise Questions Ahead Of Earnings
• Neutral Sentiment: Adobe is scheduled to report fiscal Q2 results on June 11, and investors are positioning ahead of the release rather than waiting for the numbers. Adobe Stock Price Forecast — What Analysts Expect Ahead June 11 Earnings
• Neutral Sentiment: Short-interest data showed no meaningful change, so the latest move appears driven more by sentiment and earnings caution than by a new bearish trading setup.
• Negative Sentiment: Several reports warn that Adobe may face tougher competition in generative AI, macroeconomic softness, and elevated expectations into earnings, all of which could pressure results or guidance. Should You Buy, Sell or Hold Adobe Stock Before Q2 Earnings?
• Negative Sentiment: Market commentary also highlights leadership uncertainty, with a likely CEO transition and questions about whether Adobe needs bolder AI strategy changes, adding another layer of investor concern. Adobe needs a new CEO to make bold AI moves, and its choice could be revealed on Thursday
• Negative Sentiment: Analysts and commentators describe Adobe as a “frustrating” stock heading into earnings, reflecting skepticism that upcoming results will be strong enough to reverse the recent slide. Adobe Sinks (ADBE) as Analysts Clash Over ‘Extremely Frustrating Stock’ in Q2 Preview

Wall Street Analyst Weigh In

Several research firms have commented on ADBE. TD Cowen decreased their price target on shares of Adobe from $310.00 to $285.00 and set a “hold” rating on the stock in a research note on Monday. Argus reissued a “hold” rating on shares of Adobe in a research note on Monday, March 16th. Weiss Ratings reissued a “sell (d+)” rating on shares of Adobe in a research note on Wednesday, June 3rd. Piper Sandler reissued a “neutral” rating and set a $280.00 price target on shares of Adobe in a research note on Thursday, June 4th. Finally, Citigroup lifted their price target on shares of Adobe from $253.00 to $264.00 and gave the stock a “neutral” rating in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, seventeen have assigned a Hold rating and five have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Adobe currently has an average rating of “Hold” and an average target price of $331.65.

Insider Buying and Selling

In related news, CEO Shantanu Narayen sold 75,000 shares of Adobe stock in a transaction on 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 directly owned 359,538 shares of the company’s stock, valued at $87,561,884.52. The trade was a 17.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Daniel Durn sold 1,336 shares of Adobe stock in a transaction on Monday, April 20th. The stock was sold at an average price of $248.02, for a total transaction of $331,354.72. Following the completion of the transaction, the chief financial officer directly owned 42,833 shares in the company, valued at approximately $10,623,440.66. The trade was a 3.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 owned by company insiders.

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.