Rathbones Group PLC Reduces Stock Position in Adobe Inc. $ADBE

Rathbones Group PLC lessened its holdings in shares of Adobe Inc. (NASDAQ:ADBE) by 66.1% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 135,648 shares of the software company’s stock after selling 264,698 shares during the period. Rathbones Group PLC’s holdings in Adobe were worth $32,973,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also recently added to or reduced their stakes in the company. Willis Investment Counsel boosted its stake in Adobe by 138.9% during the 4th quarter. Willis Investment Counsel now owns 40,715 shares of the software company’s stock worth $14,250,000 after purchasing an additional 23,671 shares during the last quarter. Nicholas Company Inc. raised its stake in shares of Adobe by 7.6% in the fourth quarter. Nicholas Company Inc. now owns 174,626 shares of the software company’s stock valued at $61,117,000 after acquiring an additional 12,400 shares in the last quarter. Teacher Retirement System of Texas raised its position in Adobe by 13.4% in the 4th quarter. Teacher Retirement System of Texas now owns 215,611 shares of the software company’s stock valued at $75,462,000 after purchasing an additional 25,435 shares in the last quarter. Wealthfront Advisers LLC grew its holdings in Adobe by 13.2% during the 4th quarter. Wealthfront Advisers LLC now owns 55,179 shares of the software company’s stock worth $19,312,000 after acquiring an additional 6,426 shares in the last quarter. Finally, True North Advisors LLC increased its holdings in shares of Adobe by 301.1% in the 4th quarter. True North Advisors LLC now owns 6,493 shares of the software company’s stock valued at $2,273,000 after acquiring an additional 4,874 shares during the last quarter. 81.79% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, Director David A. Ricks bought 10,000 shares of the stock in a transaction that occurred on Thursday, June 25th. The shares were purchased at an average cost of $194.51 per share, with a total value of $1,945,100.00. Following the completion of the acquisition, the director directly owned 17,655 shares in the company, valued at approximately $3,434,074.05. The trade was a 130.63% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Jillian Forusz sold 416 shares of Adobe stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $264.33, for a total transaction of $109,961.28. Following the completion of the transaction, the chief accounting officer directly owned 3,824 shares in the company, valued at $1,010,797.92. This represents a 9.81% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.20% of the company’s stock.

Analyst Upgrades and Downgrades

ADBE has been the topic of a number of recent analyst reports. The Goldman Sachs Group dropped their target price on shares of Adobe from $220.00 to $190.00 and set a “sell” rating on the stock in a research report on Friday, June 12th. Wolfe Research downgraded Adobe from an “outperform” rating to a “peer perform” rating in a research report on Friday, June 12th. Bank of America reaffirmed an “underperform” rating and set a $190.00 price target on shares of Adobe in a research note on Tuesday, July 7th. JPMorgan Chase & Co. decreased their price target on shares of Adobe from $420.00 to $340.00 and set an “overweight” rating for the company in a research report on Friday, June 12th. Finally, Stifel Nicolaus restated a “hold” rating and issued a $200.00 price target (down from $350.00) on shares of Adobe in a research note on Friday, June 12th. Seven analysts have rated the stock with a Buy rating, twenty-one have issued a Hold rating and six have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $271.30.

Adobe Stock Performance

Shares of NASDAQ ADBE opened at $250.41 on Monday. Adobe Inc. has a 12-month low of $190.12 and a 12-month high of $370.86. The company has a market cap of $99.54 billion, a PE ratio of 14.33, a P/E/G ratio of 0.84 and a beta of 1.43. The stock has a 50 day simple moving average of $226.69 and a 200-day simple moving average of $248.28. 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 (NASDAQ:ADBE) last issued 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 return on equity of 65.11% and a net margin of 28.69%.The company had revenue of $6.62 billion for the quarter, compared to analyst estimates of $6.45 billion. During the same period last year, the company earned $5.06 earnings per share. The company’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. On average, equities research analysts forecast that Adobe Inc. will post 19.81 EPS for the current year.

Adobe announced that its Board of Directors has initiated a stock repurchase program on Tuesday, April 21st that allows the company to repurchase $25.00 billion in shares. This repurchase authorization allows the software company to purchase up to 24.9% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its shares are undervalued.

Adobe News Summary

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe’s latest AI acquisition reportedly cleared Washington without significant regulatory obstacles, removing a potential deal risk and strengthening the company’s efforts to expand AI-powered creative tools. Adobe’s latest AI acquisition just breezed through Washington
• Positive Sentiment: Recent commentary argues that AI is enhancing Adobe’s business rather than replacing it, potentially supporting new monetization opportunities, stronger customer engagement and a rebuilding of the company’s growth engine. Adobe’s latest quarterly results also showed roughly 13% year-over-year revenue growth and performance above analyst expectations. Adobe: How AI Is Enhancing Its Business, Not Killing It
• Positive Sentiment: Investors are also considering ways to participate in Adobe’s AI upside while hedging risks, suggesting that the stock remains a significant target for AI-related trading and positioning. As Adobe monetizes AI, here’s a way to trade it and hedge against risks
• Neutral Sentiment: Analyst and investor views remain divided. Some see Adobe’s valuation and free-cash-flow generation as attractive, while others remain concerned about AI disruption, software-sector weakness and the need to restore faster growth. Adobe Stock Trades Below The Market on Earnings While Its Growth Engine Is Being Rebuilt
• Negative Sentiment: Adobe Chief Accounting Officer Jillian Forusz sold 416 shares worth approximately $110,000. The transaction was relatively small, but it adds to a pattern of insider selling that may weigh modestly on sentiment. SEC Form 4 filing
• Negative Sentiment: A reported collapse of a highly leveraged AI hedge fund and forced selling of AI-infrastructure positions could reinforce broader caution around crowded AI trades and software-sector volatility, although it does not directly affect Adobe’s operations. AI hedge fund collapses after margin calls

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.