Adobe (NASDAQ:ADBE) Rating Increased to Moderate Buy at CLSA

CLSA upgraded shares of Adobe (NASDAQ:ADBE) to a moderate buy rating in a research note released on Monday,Zacks.com reports.

Other research analysts have also recently issued reports about the stock. Citizens Jmp reaffirmed a “market perform” rating on shares of Adobe in a report on Friday, June 12th. Robert W. Baird reduced their price target on shares of Adobe from $270.00 to $230.00 and set a “neutral” rating for the company in a research report on Friday, June 12th. Evercore set a $225.00 price objective on Adobe and gave the company an “in-line” rating in a research report on Friday, June 12th. Summit Redstone set a $350.00 target price on Adobe in a research note on Friday, April 17th. Finally, HSBC raised Adobe from a “hold” rating to a “buy” rating and lifted their target price for the stock from $282.00 to $308.00 in a report on Thursday, July 2nd. Seven research analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and six have given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $271.30.

Adobe Price Performance

Shares of NASDAQ ADBE opened at $234.74 on Monday. The company has a 50 day simple moving average of $228.35 and a two-hundred day simple moving average of $254.68. Adobe has a fifty-two week low of $190.12 and a fifty-two week high of $376.16. The company has a market capitalization of $93.31 billion, a price-to-earnings ratio of 13.43, a P/E/G ratio of 0.80 and a beta of 1.43. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.75 and a current ratio of 0.75.

Adobe (NASDAQ:ADBE) last announced its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.82 by $0.14. Adobe had a return on equity of 65.11% and a net margin of 28.69%.The business had revenue of $6.62 billion during the quarter, compared to analysts’ expectations of $6.45 billion. During the same quarter in the previous year, the business earned $5.06 earnings per share. The firm’s quarterly revenue 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. Analysts expect that Adobe will post 19.81 EPS for the current fiscal year.

Adobe declared that its board has authorized a stock repurchase plan on Tuesday, April 21st that permits the company to buyback $25.00 billion in outstanding shares. This buyback authorization permits the software company to purchase up to 24.9% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In related 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 value of $185,918.75. Following the completion of the transaction, the chief accounting officer owned 3,521 shares of the company’s stock, valued at approximately $867,046.25. This represents a 17.66% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director David A. Ricks purchased 10,000 shares of the business’s stock in a transaction on Thursday, June 25th. The stock was acquired at an average price of $194.51 per share, with a total value of $1,945,100.00. Following the purchase, the director directly owned 17,655 shares in the company, valued at $3,434,074.05. This represents a 130.63% increase in their position. The SEC filing for this purchase provides additional information. Insiders own 0.20% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ADBE. Norges Bank purchased a new position in Adobe during the 4th quarter valued at approximately $2,275,165,000. AQR Capital Management LLC boosted its position in shares of Adobe by 55.2% during the 3rd quarter. AQR Capital Management LLC now owns 2,587,399 shares of the software company’s stock valued at $912,705,000 after acquiring an additional 920,353 shares during the last quarter. Amundi boosted its position in shares of Adobe by 17.9% during the 3rd quarter. Amundi now owns 4,888,283 shares of the software company’s stock valued at $1,711,583,000 after acquiring an additional 742,646 shares during the last quarter. State of Michigan Retirement System grew its position in Adobe by 566.1% in the first quarter. State of Michigan Retirement System now owns 820,823 shares of the software company’s stock worth $199,526,000 after acquiring an additional 697,600 shares in the last quarter. Finally, AMF Tjanstepension AB purchased a new stake in Adobe during the first quarter valued at approximately $167,494,000. 81.79% of the stock is currently owned by institutional investors.

Trending Headlines about Adobe

Here are the key news stories impacting Adobe this week:

• Negative Sentiment: Morgan Stanley downgraded Adobe and Salesforce, helping push Adobe shares down about 4% in pre-market trading as investors reacted to a more cautious view on the software group. Adobe (ADBE) and Salesforce (CRM) Stocks Are Falling in Pre-Market Trading Today. Here’s Why
• Negative Sentiment: Investor attention is also on CEO Shantanu Narayen’s sale of about 4,112 Adobe shares for roughly $923,000, which can add to caution even though the transaction was relatively small compared with his remaining stake. Here’s What the Adobe CEO’s Sale of Company Shares for Over $900,000 Means for Investors.
• Neutral Sentiment: Adobe continues to draw interest as a leading digital media stock, and some commentary still points to the company’s valuation and fundamentals as supportive, but these notes are not strong enough to offset the current bearish trading pressure. Here’s Why Adobe Systems (ADBE) is a Strong Value Stock
• Neutral Sentiment: Adobe’s new AI features for its Project Indigo camera app show ongoing product innovation, but the news is more about long-term product development than an immediate stock-moving catalyst. Adobe camera app’s new feature will critique your photos using AI

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.