Polen Capital Management LLC Trims Stake in Adobe Inc. $ADBE

Polen Capital Management LLC lessened its position in shares of Adobe Inc. (NASDAQ:ADBE) by 27.5% during the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 1,345,588 shares of the software company’s stock after selling 511,610 shares during the quarter. Adobe comprises 2.0% of Polen Capital Management LLC’s investment portfolio, making the stock its 20th biggest holding. Polen Capital Management LLC owned about 0.33% of Adobe worth $470,942,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Xponance LLC grew its position in Adobe by 5.6% during the 4th quarter. Xponance LLC now owns 114,083 shares of the software company’s stock worth $39,928,000 after purchasing an additional 6,045 shares during the last quarter. Canopy Partners LLC boosted its stake in shares of Adobe by 31.0% during the fourth quarter. Canopy Partners LLC now owns 946 shares of the software company’s stock worth $331,000 after buying an additional 224 shares during the period. IFM Investors Pty Ltd boosted its stake in shares of Adobe by 2.0% during the fourth quarter. IFM Investors Pty Ltd now owns 88,262 shares of the software company’s stock worth $30,891,000 after buying an additional 1,752 shares during the period. SmartHarvest Portfolios LLC purchased a new position in shares of Adobe during the fourth quarter worth about $395,000. Finally, MIdWestOne Financial Group Inc. increased its position in Adobe by 55.4% in the 4th quarter. MIdWestOne Financial Group Inc. now owns 2,740 shares of the software company’s stock valued at $959,000 after acquiring an additional 977 shares during the period. Hedge funds and other institutional investors own 81.79% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms have recently commented on ADBE. The Goldman Sachs Group cut their price target on Adobe from $290.00 to $220.00 and set a “sell” rating for the company in a research note on Friday, March 13th. Wall Street Zen cut shares of Adobe from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd. Royal Bank Of Canada set a $285.00 price objective on shares of Adobe in a research report on Monday. Wells Fargo & Company lowered their target price on shares of Adobe from $420.00 to $405.00 and set an “overweight” rating on the stock in a report on Monday, March 9th. Finally, Jefferies Financial Group dropped their price target on shares of Adobe from $400.00 to $290.00 and set a “hold” rating on the stock in a research note on Monday, February 23rd. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, sixteen have given a Hold rating and five have given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $331.65.

Insider Buying and Selling at Adobe

In related news, CFO Daniel Durn sold 1,336 shares of the company’s stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $248.02, for a total value of $331,354.72. Following the sale, the chief financial officer owned 42,833 shares in the company, valued at $10,623,440.66. This represents a 3.02% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Shantanu Narayen sold 75,000 shares of the firm’s stock in a transaction that occurred 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 completion of 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 disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 77,091 shares of company stock valued at $18,782,773. Corporate insiders own 0.20% of the company’s stock.

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe reported record Q2 revenue of $6.62 billion and EPS of $5.96, both above Wall Street estimates, showing the core business is still beating expectations. Adobe Reports Record Q2 Results
• Positive Sentiment: The company raised its FY2026 outlook, guiding revenue to $26.5 billion-$26.6 billion and EPS to $24.35-$24.45, both above analyst consensus, which suggests management sees continued momentum ahead. Adobe raises annual revenue forecast, CFO to exit
• Neutral Sentiment: Adobe also said AI-driven demand and higher subscription spending helped drive results, reinforcing that its AI products are contributing to growth, though investors still want clearer proof this will last. Adobe posts record Q2 revenue and raises 2026 outlook
• Negative Sentiment: Shares are being weighed down by another senior departure, with CFO Dan Durn set to leave for Marvell, adding to concerns about leadership instability while Adobe is also searching for a new CEO. Adobe is losing another top executive, and investors don’t like it
• Negative Sentiment: Investors remain skeptical that Adobe’s AI push will translate into sustained growth, and that uncertainty has kept pressure on the stock even after the earnings beat. Adobe Stock Sinks to Multi-Year Low Ahead of Earnings

Adobe Trading Down 6.5%

NASDAQ:ADBE opened at $218.24 on Friday. The stock has a market capitalization of $88.21 billion, a price-to-earnings ratio of 12.71, a PEG ratio of 0.91 and a beta of 1.42. Adobe Inc. has a 1 year low of $218.09 and a 1 year high of $416.39. The stock has a fifty day moving average price of $245.29 and a two-hundred day moving average price of $279.13. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.91 and a current ratio of 0.91.

Adobe (NASDAQ:ADBE) last posted its quarterly earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share for the quarter, topping analysts’ consensus estimates of $5.82 by $0.14. The business had revenue of $6.62 billion for the quarter, compared to analysts’ expectations of $6.45 billion. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The business’s revenue for the quarter was up 12.7% on a year-over-year basis. During the same period in the prior year, the company posted $5.06 EPS. 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 anticipate that Adobe Inc. will post 19.14 earnings per share for the current fiscal year.

Adobe declared that its board has initiated a stock repurchase program on Tuesday, April 21st that permits the company to buyback $25.00 billion in shares. This buyback authorization permits the software company to reacquire up to 24.9% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s leadership believes its stock is undervalued.

Adobe 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.