Adobe (NASDAQ:ADBE) Hits New 1-Year Low – Time to Sell?

Adobe Inc. (NASDAQ:ADBE)’s stock price reached a new 52-week low on Tuesday . The stock traded as low as $262.95 and last traded at $266.90, with a volume of 6568061 shares changing hands. The stock had previously closed at $268.38.

Trending Headlines about Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe reported a recent quarterly beat, solid margins and set FY26 guidance that implies continued earnings strength, which supports valuation and investor buying interest.
• Positive Sentiment: Adobe deepened its enterprise generative-AI partnership with Cognizant — a commercial push that helps monetize AI across large customers and supports revenue growth expectations. Adobe Deepens Cognizant Alliance To Push Enterprise Generative AI Adoption
• Positive Sentiment: Multiple analysts and outlets are calling software stocks (including Adobe) attractive after the sell-off — several pieces argue ADBE looks undervalued or “too cheap to ignore,” encouraging value-oriented buying. Adobe: Too Cheap To Ignore, AI Fears Overblown
• Positive Sentiment: Market commentary suggests heavy short interest across software names could set up a near‑term squeeze if prices stabilize; that dynamics can amplify rallies in beaten-down leaders like Adobe. Software Stocks Look Primed for a Short Squeeze
• Neutral Sentiment: Short‑interest data reported for Adobe in mid‑February shows anomalous/zero figures and inconsistent prints across feeds, so current short-interest signals are unclear and shouldn’t be over‑interpreted.
• Neutral Sentiment: PR and industry programs such as Adobe’s Creative Collective aim to bolster brand/industry positioning but are unlikely to move the stock materially in the near term. Adobe’s Creative Collective assembles multidisciplinary experts to analyse and advise on the industry’s big changes
• Negative Sentiment: A class-action suit alleges Adobe used pirated books to train AI models — this introduces legal and PR risk that could result in costs, injunctions or investor concern if litigation escalates. Class Suit Accuses Adobe of Using Pirated Books to Train AI Models
• Negative Sentiment: Short-term price weakness was highlighted in recent market coverage (ADBE fell more steeply than the broader market on the latest close), reflecting continued investor caution around AI disruption and the broader tech sell-off. Adobe Systems (ADBE) Falls More Steeply Than Broader Market: What Investors Need to Know

Analyst Ratings Changes

Several brokerages recently issued reports on ADBE. Mizuho reduced their price target on shares of Adobe from $410.00 to $390.00 and set an “outperform” rating on the stock in a research report on Thursday, November 20th. Wall Street Zen cut Adobe from a “buy” rating to a “hold” rating in a research report on Saturday, January 17th. Wells Fargo & Company decreased their target price on Adobe from $470.00 to $420.00 and set an “overweight” rating for the company in a research report on Thursday, November 20th. TD Cowen dropped their price target on Adobe from $420.00 to $400.00 and set a “hold” rating on the stock in a research report on Thursday, December 11th. Finally, Wolfe Research reduced their price target on Adobe from $450.00 to $440.00 and set an “outperform” rating on the stock in a research note on Thursday, December 11th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, eleven have assigned a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $401.13.

Adobe Price Performance

The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.53. The firm has a fifty day moving average of $319.53 and a 200 day moving average of $335.84. The company has a market capitalization of $107.76 billion, a P/E ratio of 15.71, a P/E/G ratio of 1.01 and a beta of 1.51.

Adobe (NASDAQ:ADBE) last announced its earnings results on Wednesday, December 10th. The software company reported $5.50 earnings per share 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 business had revenue of $6.19 billion during the quarter, compared to analyst estimates of $6.11 billion. During the same period in the previous year, the business earned $4.81 EPS. The company’s quarterly revenue was up 10.5% compared to the same quarter last year. 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 research analysts anticipate that Adobe Inc. will post 16.65 EPS for the current year.

Insider Activity

In other Adobe 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 transaction of $485,323.10. Following the completion of the sale, the chief financial officer directly owned 41,995 shares in the company, valued at $12,382,225.75. The trade was a 3.77% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.16% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Adobe

A number of institutional investors and hedge funds have recently made changes to their positions in the business. LSV Asset Management boosted its stake in shares of Adobe by 350.0% during the 2nd quarter. LSV Asset Management now owns 72 shares of the software company’s stock worth $28,000 after acquiring an additional 56 shares during the last quarter. Measured Wealth Private Client Group LLC bought a new position in Adobe in the 3rd quarter worth $26,000. Western Pacific Wealth Management LP purchased a new position in Adobe during the fourth quarter valued at $26,000. Caitlin John LLC bought a new stake in Adobe during the third quarter valued at about $28,000. Finally, Nexus Investment Management ULC bought a new stake in Adobe during the second quarter valued at about $31,000. 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.