Adobe (NASDAQ:ADBE) Shares Down 2.6% – Here’s Why

Adobe Inc. (NASDAQ:ADBE)’s share price was down 2.6% during trading on Thursday . The company traded as low as $284.60 and last traded at $291.65. Approximately 7,390,975 shares traded hands during trading, an increase of 48% from the average daily volume of 4,985,312 shares. The stock had previously closed at $299.58.

Key Stories Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Airtel partnership expands Adobe Express distribution to a huge user base (reported as a global-first reach of ~360M users), which could boost trial volume, awareness and long-term conversions outside Adobe’s core markets. Airtel offers free Adobe Express Premium access
• Positive Sentiment: Major Photoshop updates (clarity/dehaze layer and other pro workflow improvements) strengthen product differentiation and subscription stickiness for Creative Cloud — a tailwind to ARPU and retention. Adobe Announces New Upgrades To Photoshop
• Neutral Sentiment: CFO Daniel Durn sold ~1,646 shares (~$485k); insider sales can be noise — small relative to his remaining stake — so this is a limited corporate‑governance/liquidity signal rather than a company-operational red flag. CFO Daniel Durn sells shares
• Neutral Sentiment: Corporate filings disclosed executive compensation and a new severance policy — governance items to monitor but unlikely to move the stock materially unless they spark activist attention.
• Negative Sentiment: Adobe agreed to acquire Semrush at a reported ~78% premium — the size and premium raise concerns about deal economics and integration risk, which can pressure near-term stock sentiment. Adobe Acquired Semrush at a 78% premium
• Negative Sentiment: Semrush merger is already attracting shareholder lawsuits, creating legal/closing risk, potential delays and added cost/uncertainty for the deal. Semrush faces shareholder lawsuits over proposed Adobe merger
• Negative Sentiment: Multiple sell-side downgrades and comparisons favoring competitors (Goldman/BMO/Jefferies downgrades; articles comparing Adobe unfavorably to rivals/AI peers) have pressured sentiment and weigh on valuation expectations. Goldman, BMO, and Jefferies downgrade Adobe
• Negative Sentiment: Broader competitive stories (Figma, Apple Creator Studio and other AI‑driven offerings) are keeping investors cautious about growth/margin upside in a faster-evolving market. Figma vs. Adobe: AI software comparison

Analysts Set New Price Targets

A number of research analysts recently weighed in on ADBE shares. UBS Group dropped their price objective on shares of Adobe from $375.00 to $340.00 and set a “neutral” rating for the company in a report on Monday. The Goldman Sachs Group initiated coverage on shares of Adobe in a research note on Monday, January 12th. They issued a “sell” rating and a $290.00 price target for the company. Jefferies Financial Group lowered Adobe from a “buy” rating to a “hold” rating and decreased their target price for the company from $500.00 to $400.00 in a report on Monday, January 5th. TD Cowen cut their price target on Adobe from $420.00 to $400.00 and set a “hold” rating on the stock in a report on Thursday, December 11th. Finally, BMO Capital Markets cut Adobe from an “outperform” rating to a “market perform” rating and decreased their price objective for the company from $400.00 to $375.00 in a research note on Friday, January 9th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, eleven have given a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $397.19.

Adobe Trading Down 2.6%

The company has a market cap of $119.72 billion, a price-to-earnings ratio of 17.45, a PEG ratio of 1.17 and a beta of 1.53. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.53. The business’s fifty day simple moving average is $329.78 and its two-hundred day simple moving average is $342.82.

Adobe (NASDAQ:ADBE) last posted its earnings results on Wednesday, December 10th. The software company reported $5.50 EPS for the quarter, beating analysts’ consensus estimates of $5.40 by $0.10. Adobe had a net margin of 30.00% and a return on equity of 61.28%. The firm had revenue of $6.19 billion for the quarter, compared to the consensus estimate of $6.11 billion. During the same period last year, the firm posted $4.81 EPS. The company’s revenue was up 10.5% on a year-over-year basis. Adobe has set its Q1 2026 guidance at 5.850-5.900 EPS and its FY 2026 guidance at 23.300-23.500 EPS. On average, equities analysts predict that Adobe Inc. will post 16.65 EPS for the current year.

Insider Activity

In other news, CFO Daniel Durn sold 1,646 shares of the business’s stock in a transaction dated Tuesday, January 27th. The stock was sold at an average price of $294.85, for a total value of $485,323.10. Following the completion of the sale, the chief financial officer directly owned 41,995 shares of the company’s stock, valued at approximately $12,382,225.75. The trade was a 3.77% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Jillian Forusz sold 149 shares of the firm’s stock in a transaction that occurred on Friday, October 31st. The stock was sold at an average price of $337.88, for a total value of $50,344.12. Following the transaction, the chief accounting officer owned 3,426 shares in the company, valued at $1,157,576.88. This represents a 4.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.16% of the stock is currently owned by insiders.

Institutional Trading of Adobe

Several institutional investors and hedge funds have recently bought and sold shares of ADBE. Measured Wealth Private Client Group LLC purchased a new position in shares of Adobe during the third quarter worth about $26,000. KERR FINANCIAL PLANNING Corp acquired a new position in Adobe during the third quarter worth about $27,000. LSV Asset Management increased its stake in Adobe by 350.0% in the 2nd quarter. LSV Asset Management now owns 72 shares of the software company’s stock valued at $28,000 after purchasing an additional 56 shares in the last quarter. Caitlin John LLC purchased a new position in Adobe during the 3rd quarter valued at about $28,000. Finally, Beacon Financial Strategies CORP acquired a new position in shares of Adobe during the 4th quarter worth approximately $28,000. Hedge funds and other institutional investors own 81.79% of the company’s stock.

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.