Adobe (NASDAQ:ADBE) Stock Rating Upgraded by CLSA

Adobe (NASDAQ:ADBE) was upgraded by stock analysts at CLSA to a “moderate buy” rating in a research report issued on Monday,Zacks.com reports.

Several other equities analysts have also weighed in on the stock. Citigroup restated a “market perform” rating on shares of Adobe in a research report on Friday, June 12th. HSBC raised shares of Adobe from a “hold” rating to a “buy” rating and increased their target price for the company from $282.00 to $308.00 in a research note on Thursday, July 2nd. Royal Bank Of Canada reduced their target price on shares of Adobe from $350.00 to $285.00 and set an “outperform” rating for the company in a report on Monday, June 8th. Sanford C. Bernstein decreased their price target on shares of Adobe from $447.00 to $379.00 and set an “outperform” rating on the stock in a research report on Friday, June 12th. Finally, Jefferies Financial Group dropped their price target on Adobe from $290.00 to $230.00 and set a “hold” rating on the stock in a report on Friday, June 12th. Seven research analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and six have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $271.30.

Adobe Stock Down 3.2%

Shares of ADBE stock opened at $227.16 on Monday. Adobe has a 1 year low of $190.12 and a 1 year high of $376.16. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.75 and a current ratio of 0.75. The business’s fifty day moving average is $228.08 and its 200-day moving average is $253.81. The stock has a market cap of $90.30 billion, a PE ratio of 13.00, a price-to-earnings-growth ratio of 0.79 and a beta of 1.43.

Adobe (NASDAQ:ADBE) last announced its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 earnings per share for the quarter, beating the consensus estimate 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 return on equity of 65.11% and a net margin of 28.69%.The company’s revenue was up 12.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $5.06 earnings per share. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. Equities analysts expect that Adobe will post 19.81 earnings per share for the current fiscal year.

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

Insider Buying and Selling

In other Adobe 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 transaction of $18,265,500.00. Following the transaction, the chief executive officer owned 359,538 shares of the company’s stock, valued at $87,561,884.52. The trade was a 17.26% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CAO Jillian Forusz sold 755 shares of the company’s stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $246.25, for a total value of $185,918.75. Following the completion of the transaction, the chief accounting officer owned 3,521 shares in the company, valued at $867,046.25. This represents a 17.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.20% of the company’s stock.

Institutional Investors Weigh In On Adobe

A number of institutional investors have recently modified their holdings of ADBE. State Street Corp lifted its stake in Adobe by 1.7% during the third quarter. State Street Corp now owns 20,632,009 shares of the software company’s stock worth $7,277,941,000 after purchasing an additional 352,448 shares during the period. Geode Capital Management LLC grew its stake in shares of Adobe by 3.7% in the 4th quarter. Geode Capital Management LLC now owns 11,531,678 shares of the software company’s stock valued at $4,027,170,000 after purchasing an additional 414,049 shares during the period. Arrowstreet Capital Limited Partnership grew its stake in shares of Adobe by 9.1% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 6,792,275 shares of the software company’s stock valued at $1,651,066,000 after purchasing an additional 563,772 shares during the period. Norges Bank acquired a new position in shares of Adobe in the 4th quarter worth approximately $2,275,165,000. Finally, Invesco Ltd. raised its holdings in shares of Adobe by 6.2% in the 4th quarter. Invesco Ltd. now owns 5,119,025 shares of the software company’s stock worth $1,791,607,000 after buying an additional 297,337 shares in the last quarter. Institutional investors and hedge funds own 81.79% of the company’s stock.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Negative Sentiment: Morgan Stanley lowered Adobe to Underweight, saying multiple strategic transitions are happening at once and that AI disruption could make it harder for the company to reaccelerate growth. Adobe stock has been crushed by AI fears. Now Morgan Stanley has cut its rating to underweight
• Negative Sentiment: More Wall Street downgrades and commentary around Adobe’s AI exposure are adding to the selling pressure, with some analysts saying peers may offer cleaner AI monetization and faster growth. ADBE Stock Drops After Morgan Stanley Downgrade – Sees ‘Cleaner Growth And AI Monetization Elsewhere’
• Neutral Sentiment: Adobe continues to push into AI with new features in its experimental Project Indigo camera app, highlighting that it is still investing in product innovation even as investors worry about competitive threats. Adobe crams multiple AI tools into its experimental camera app
• Neutral Sentiment: Some coverage argues Adobe still looks attractive on valuation and that one analyst sees meaningful upside from current levels, but that view is being outweighed today by broader AI-related concern. ADBE stock is falling again but here’s why one Wall Street analyst sees a 31% upside

Adobe Company Profile

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.