Adobe Inc. (NASDAQ:ADBE) Receives Average Rating of “Hold” from Analysts

Shares of Adobe Inc. (NASDAQ:ADBE) have been given a consensus rating of “Hold” by the twenty-eight brokerages that are covering the company, MarketBeat Ratings reports. Four research analysts have rated the stock with a sell recommendation, twelve have assigned a hold recommendation, eleven have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 1 year target price among brokerages that have covered the stock in the last year is $402.8462.

A number of analysts have weighed in on the company. Morgan Stanley decreased their price objective on Adobe from $450.00 to $425.00 and set an “equal weight” rating for the company in a research report on Thursday, December 11th. Stifel Nicolaus reduced their target price on shares of Adobe from $480.00 to $450.00 and set a “buy” rating for the company in a research note on Tuesday, December 9th. UBS Group set a $487.00 price target on shares of Adobe in a report on Sunday, December 14th. Cowen reiterated a “hold” rating on shares of Adobe in a research report on Monday, December 8th. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of Adobe in a report on Monday, December 29th.

Insiders Place Their Bets

In other Adobe news, CAO Jillian Forusz sold 149 shares of the business’s stock in a transaction on Friday, October 31st. The stock was sold at an average price of $337.88, for a total transaction of $50,344.12. Following the sale, the chief accounting officer directly owned 3,426 shares in the company, valued at approximately $1,157,576.88. The trade was a 4.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.16% of the stock is owned by insiders.

Institutional Trading of Adobe

Several institutional investors and hedge funds have recently modified their holdings of the business. Norges Bank purchased a new stake in shares of Adobe in the second quarter valued at $2,029,950,000. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Adobe by 53.3% during the third quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company’s stock worth $1,981,448,000 after purchasing an additional 1,952,994 shares during the last quarter. Dodge & Cox increased its stake in Adobe by 8,006.6% in the third quarter. Dodge & Cox now owns 1,593,506 shares of the software company’s stock valued at $562,109,000 after purchasing an additional 1,573,849 shares during the last quarter. AQR Capital Management LLC grew its holdings in Adobe by 55.2% in 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 buying an additional 920,353 shares during the period. Finally, Franklin Resources Inc. lifted its holdings in shares of Adobe by 68.9% during the 2nd quarter. Franklin Resources Inc. now owns 1,939,018 shares of the software company’s stock worth $750,168,000 after acquiring an additional 791,077 shares during the period. Hedge funds and other institutional investors own 81.79% of the company’s stock.

Adobe Price Performance

ADBE stock opened at $296.12 on Monday. The business has a 50 day simple moving average of $334.75 and a 200-day simple moving average of $346.95. The company has a market capitalization of $123.96 billion, a P/E ratio of 17.72, a PEG ratio of 1.17 and a beta of 1.53. Adobe has a twelve month low of $295.42 and a twelve month high of $465.70. The company has a current ratio of 1.00, a quick ratio of 1.02 and a debt-to-equity ratio of 0.53.

Adobe (NASDAQ:ADBE) last issued its quarterly earnings data on Wednesday, December 10th. The software company reported $5.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.40 by $0.10. Adobe had a net margin of 30.00% and a return on equity of 61.28%. The company 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. Adobe’s revenue for the quarter 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. As a group, equities analysts anticipate that Adobe will post 16.65 EPS for the current year.

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.