Rakuten Investment Management Inc. Boosts Stock Position in Adobe Inc. $ADBE

Rakuten Investment Management Inc. lifted its holdings in shares of Adobe Inc. (NASDAQ:ADBE) by 12.3% in the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 77,825 shares of the software company’s stock after acquiring an additional 8,536 shares during the quarter. Rakuten Investment Management Inc.’s holdings in Adobe were worth $27,485,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Brighton Jones LLC lifted its holdings in shares of Adobe by 2.1% during the fourth quarter. Brighton Jones LLC now owns 8,068 shares of the software company’s stock valued at $3,588,000 after purchasing an additional 167 shares in the last quarter. Sivia Capital Partners LLC boosted its stake in shares of Adobe by 25.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company’s stock worth $926,000 after buying an additional 486 shares during the last quarter. United Bank grew its holdings in shares of Adobe by 12.8% in the second quarter. United Bank now owns 3,773 shares of the software company’s stock worth $1,460,000 after acquiring an additional 428 shares during the period. Schnieders Capital Management LLC. grew its holdings in shares of Adobe by 7.8% in the second quarter. Schnieders Capital Management LLC. now owns 2,630 shares of the software company’s stock worth $1,017,000 after acquiring an additional 190 shares during the period. Finally, Gamco Investors INC. ET AL increased its position in Adobe by 190.6% during the second quarter. Gamco Investors INC. ET AL now owns 2,764 shares of the software company’s stock valued at $1,069,000 after acquiring an additional 1,813 shares during the last quarter. Hedge funds and other institutional investors own 81.79% of the company’s stock.

Insider Buying and Selling at Adobe

In other news, CEO Shantanu Narayen sold 75,000 shares of Adobe stock in a transaction dated Tuesday, April 28th. The stock was sold at an average price of $243.54, for a total value of $18,265,500.00. Following the sale, the chief executive officer directly owned 359,538 shares of the company’s stock, valued at approximately $87,561,884.52. The trade was a 17.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Daniel Durn sold 1,336 shares of the business’s stock in a transaction on Monday, April 20th. The stock was sold at an average price of $248.02, for a total transaction of $331,354.72. Following the completion of 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 disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 77,091 shares of company stock worth $18,782,773. Insiders own 0.20% of the company’s stock.

Analyst Ratings Changes

Several equities analysts have recently weighed in on the stock. JPMorgan Chase & Co. lowered their price objective on shares of Adobe from $420.00 to $340.00 and set an “overweight” rating on the stock in a research note on Friday. Citigroup restated a “market perform” rating on shares of Adobe in a research report on Friday. Morgan Stanley decreased their price target on shares of Adobe from $425.00 to $365.00 and set an “equal weight” rating on the stock in a research report on Friday, March 13th. Sanford C. Bernstein dropped their price target on shares of Adobe from $447.00 to $379.00 and set an “outperform” rating on the stock in a research note on Friday. Finally, Wall Street Zen downgraded shares of Adobe from a “buy” rating to a “hold” rating in a research report on Saturday, May 2nd. Five investment analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $278.16.

Adobe Stock Up 1.1%

NASDAQ ADBE opened at $206.36 on Tuesday. The stock’s 50 day moving average is $243.81 and its 200 day moving average is $277.53. The company has a current ratio of 0.75, a quick ratio of 0.91 and a debt-to-equity ratio of 0.42. Adobe Inc. has a 12 month low of $196.90 and a 12 month high of $405.00. The stock has a market cap of $83.41 billion, a PE ratio of 11.81, a P/E/G ratio of 0.80 and a beta of 1.42.

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. The business had revenue of $6.62 billion during the quarter, compared to analyst estimates of $6.45 billion. Adobe had a net margin of 28.69% and a return on equity of 65.11%. The company’s revenue was up 12.7% on a year-over-year basis. During the same period last year, the firm 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. Research analysts predict that Adobe Inc. will post 19.14 EPS for the current fiscal year.

Adobe declared that its board has authorized a stock buyback plan on Tuesday, April 21st that authorizes the company to buyback $25.00 billion in outstanding shares. This buyback authorization authorizes the software company to reacquire up to 24.9% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s board believes its stock is undervalued.

More Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe’s new partnership with LinkedIn to launch AI-focused marketing coursework could reinforce its position in AI-powered creative and marketing tools, while also helping drive broader product usage. Article Title
• Positive Sentiment: Several recent articles argue Adobe is undervalued after its earnings beat and raised outlook, with commentary suggesting the stock may be trading at an attractive earnings multiple for long-term investors. Article Title
• Positive Sentiment: Multiple analysts and market commentators see Adobe as oversold following its post-earnings drop, pointing to record revenue, stronger guidance, and a discounted valuation as reasons bulls may be stepping in. Article Title
• Neutral Sentiment: Recent coverage from analysts and financial media is mixed, with some emphasizing AI momentum and others highlighting decelerating growth, uncertain ARR durability, and execution risk during Adobe’s strategic transition. Article Title
• Negative Sentiment: Investor concern remains elevated after Adobe CFO Anil Chakravarthy’s departure to join a chipmaker, adding to worries about leadership stability after the stock’s sharp decline. Article Title
• Negative Sentiment: Some market commentary says Adobe is still being treated as a “selloff” name because investors are focused on the challenge of converting AI usage into meaningful revenue growth. Article Title

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.