Adobe (NASDAQ:ADBE) Shares Down 5.4% – Here’s What Happened

Adobe Inc. (NASDAQ:ADBE)’s share price dropped 5.4% during trading on Tuesday . The company traded as low as $307.91 and last traded at $309.93. Approximately 7,186,080 shares were traded during mid-day trading, an increase of 69% from the average daily volume of 4,262,237 shares. The stock had previously closed at $327.65.

More Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Retail investors remain active and bullish in some venues despite price weakness; articles note continued retail buying that could provide short‑term support. ADBE shares slip on analyst downgrades — but why is retail bullish?
• Positive Sentiment: Some bullish commentary argues Adobe remains an attractive long‑term opportunity based on its recurring revenue, margin profile and AI product positioning, which helps explain why some investors defend the shares. What Makes Adobe (ADBE) an Attractive Opportunity?
• Neutral Sentiment: Short‑interest report in the cycle shows anomalous/zero values (likely a data issue), so current short‑interest metrics aren’t providing clear directional clues. Finviz (short interest summary)
• Negative Sentiment: BMO downgraded ADBE to Market Perform and cut its PT to $375 from $400, saying near‑term catalysts are limited and expecting range‑bound shares. Adobe (ADBE) Downgraded as Analysts See Limited Near-Term Catalysts
• Negative Sentiment: Oppenheimer cut its rating (coverage notes and press coverage) — one of several firms trimming recommendations today — which amplified selling pressure. Adobe Shares Slide After Oppenheimer Downgrade
• Negative Sentiment: Goldman initiated coverage with a Sell and a $290 price target, signaling near‑term downside versus prior levels and adding to price‑target cuts piling up. ADBE assumed with a Sell at Goldman Sachs
• Negative Sentiment: Jefferies downgraded Adobe from Buy to Hold and cut its PT as part of a broader software‑sector re‑rating, citing rising competition and a tougher outlook for multiple software names. Jefferies Cautious on Adobe (ADBE)
• Negative Sentiment: Analyst commentary and pieces (TipRanks) highlight unusually pessimistic forecasts from some strategists — the most bearish views in years — which pressured sentiment and triggered headlines. Adobe Stock Drops as The Most Pessimistic Analyst Forecast Since 2013 Hits ADBE Shares
• Negative Sentiment: Competitive pressure from Apple’s lower‑cost creative app suite is receiving media attention as a potential longer‑term threat to Adobe’s Creative Cloud pricing/premium positioning. Apple Hits Adobe With an Affordable Creative App Suite
• Negative Sentiment: Shares hit a 52‑week low in intraday trading, reflecting the cumulative effect of downgrades, price‑target cuts and competition concerns. Adobe stock hits 52-week low at $311.55

Analyst Ratings Changes

A number of analysts have commented on the company. Oppenheimer cut Adobe from an “outperform” rating to a “market perform” rating in a research report on Tuesday. Weiss Ratings reiterated a “hold (c-)” rating on shares of Adobe in a research note on Monday, December 29th. Wall Street Zen raised shares of Adobe from a “hold” rating to a “buy” rating in a report on Monday, December 22nd. TD Cowen decreased their target price on shares of Adobe from $420.00 to $400.00 and set a “hold” rating on the stock in a research note on Thursday, December 11th. Finally, DA Davidson reiterated a “buy” rating and issued a $500.00 price target on shares of Adobe in a research report on Thursday, December 11th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, thirteen have assigned a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, Adobe has a consensus rating of “Hold” and a consensus price target of $406.44.

Adobe Price Performance

The company has a quick ratio of 1.02, a current ratio of 1.00 and a debt-to-equity ratio of 0.53. The firm’s fifty day moving average price is $336.96 and its 200 day moving average price is $349.26. The stock has a market cap of $129.74 billion, a PE ratio of 18.55, a P/E/G ratio of 1.31 and a beta of 1.53.

Adobe (NASDAQ:ADBE) last announced its quarterly earnings results on Wednesday, December 10th. The software company reported $5.50 earnings per share (EPS) 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 company had revenue of $6.19 billion for the quarter, compared to the consensus estimate of $6.11 billion. During the same period in the previous year, the firm posted $4.81 EPS. Adobe’s revenue for the quarter 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. As a group, equities analysts expect that Adobe Inc. will post 16.65 EPS for the current fiscal year.

Insider Activity at Adobe

In related news, CAO Jillian Forusz sold 149 shares of the firm’s stock in a transaction on Friday, October 31st. The shares were sold at an average price of $337.88, for a total value of $50,344.12. Following the completion of the transaction, the chief accounting officer directly owned 3,426 shares of the company’s stock, valued at approximately $1,157,576.88. This trade represents a 4.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.16% of the company’s stock.

Hedge Funds Weigh In On Adobe

Institutional investors and hedge funds have recently made changes to their positions in the business. Mather Group LLC. increased its holdings in shares of Adobe by 2.6% in the 4th quarter. Mather Group LLC. now owns 10,705 shares of the software company’s stock worth $3,746,000 after buying an additional 271 shares during the last quarter. Norden Group LLC increased its stake in Adobe by 168.7% during the fourth quarter. Norden Group LLC now owns 28,648 shares of the software company’s stock worth $10,027,000 after acquiring an additional 17,986 shares during the last quarter. NerdWallet Wealth Partners LLC purchased a new stake in Adobe during the fourth quarter valued at approximately $279,000. National Wealth Management Group LLC lifted its stake in shares of Adobe by 137.5% in the 4th quarter. National Wealth Management Group LLC now owns 1,760 shares of the software company’s stock valued at $616,000 after purchasing an additional 1,019 shares during the last quarter. Finally, Sax Wealth Advisors LLC boosted its holdings in shares of Adobe by 11.2% in the 4th quarter. Sax Wealth Advisors LLC now owns 653 shares of the software company’s stock worth $229,000 after purchasing an additional 66 shares during the period. 81.79% of the stock is owned by hedge funds and other institutional investors.

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.