Adobe (NASDAQ:ADBE) Upgraded to Strong Sell at The Goldman Sachs Group

The Goldman Sachs Group upgraded shares of Adobe (NASDAQ:ADBE) to a strong sell rating in a research note issued to investors on Monday,Zacks.com reports.

Several other analysts have also recently commented on the stock. Weiss Ratings reiterated a “hold (c-)” rating on shares of Adobe in a research note on Monday, December 29th. Citigroup upped their price objective on Adobe from $366.00 to $387.00 and gave the company a “neutral” rating in a research report on Wednesday, December 17th. Mizuho decreased their target price 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. BMO Capital Markets cut Adobe from an “outperform” rating to a “market perform” rating and lowered their price target for the company from $400.00 to $375.00 in a report on Friday. Finally, Stifel Nicolaus lowered their price objective 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. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, twelve have issued a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $406.44.

Adobe Trading Down 1.9%

NASDAQ:ADBE opened at $327.65 on Monday. The stock has a 50-day simple moving average of $336.96 and a 200-day simple moving average of $349.26. The stock has a market cap of $137.15 billion, a P/E ratio of 19.61, a P/E/G ratio of 1.31 and a beta of 1.53. Adobe has a 1 year low of $311.58 and a 1 year high of $465.70. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.02 and a current ratio of 1.00.

Adobe (NASDAQ:ADBE) last announced its quarterly earnings results on Wednesday, December 10th. The software company reported $5.50 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 firm had revenue of $6.19 billion for the quarter, compared to analyst estimates of $6.11 billion. During the same period last year, the business earned $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, analysts anticipate that Adobe will post 16.65 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CAO Jillian Forusz sold 149 shares of the business’s stock in a transaction dated 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 sale, the chief accounting officer owned 3,426 shares of the company’s stock, valued at approximately $1,157,576.88. The trade was a 4.17% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.16% of the stock is currently owned by corporate insiders.

Institutional Trading of Adobe

Several hedge funds and other institutional investors have recently bought and sold shares of ADBE. Riverbend Wealth Management LLC boosted its stake in Adobe by 1.8% during the 3rd quarter. Riverbend Wealth Management LLC now owns 1,668 shares of the software company’s stock valued at $588,000 after purchasing an additional 29 shares during the period. FSM Wealth Advisors LLC raised its holdings in shares of Adobe by 1.1% during the second quarter. FSM Wealth Advisors LLC now owns 2,644 shares of the software company’s stock valued at $997,000 after buying an additional 30 shares during the last quarter. Intellus Advisors LLC boosted its position in shares of Adobe by 1.6% during the second quarter. Intellus Advisors LLC now owns 1,860 shares of the software company’s stock worth $720,000 after buying an additional 30 shares during the period. Beacon Financial Advisory LLC boosted its position in shares of Adobe by 5.5% during the third quarter. Beacon Financial Advisory LLC now owns 577 shares of the software company’s stock worth $204,000 after buying an additional 30 shares during the period. Finally, MCF Advisors LLC grew its holdings in Adobe by 20.8% in the 3rd quarter. MCF Advisors LLC now owns 174 shares of the software company’s stock worth $61,000 after buying an additional 30 shares in the last quarter. 81.79% of the stock is owned by institutional investors.

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Bull case: Several articles argue Adobe remains an attractive long‑term opportunity given its cash flows, recurring SaaS revenue and exposure to design/creative workflows, which investors interpret as valuation upside versus peers. What Makes Adobe (ADBE) an Attractive Opportunity?
• Positive Sentiment: Retail/idea coverage: The Motley Fool included Adobe in a list of “cheap” stocks that could outperform, reinforcing a narrative that the stock may be undervalued after last year’s weakness. 3 Absurdly Cheap Stocks That Could Double in 2026
• Neutral Sentiment: Short‑interest report appears to contain data errors (reports show a jump yet list 0 shares and NaN), so there’s no clear evidence of a material short squeeze or buildup to explain the move — treat the dataset cautiously.
• Negative Sentiment: Jefferies downgraded ADBE from Buy to Hold and cut its price target from $500 to $400 as part of a broader software‑sector review, citing rising competitive pressure — a direct negative catalyst for the stock. Jefferies Cautious on Adobe (ADBE)
• Negative Sentiment: BMO downgraded Adobe to Market Perform, citing increasing competition and a lack of near‑term positive catalysts — another analyst move that pressures sentiment and can trigger selling. BMO downgrades Adobe to Market Perform
• Negative Sentiment: Analysts note Adobe’s AI tools are popular but warn competition is intensifying in generative AI and creative software — this raises execution and margin risk as rivals and new entrants chase the same market. Analysts Say Adobe’s (ADBE) AI Tools Are Popular, but Competition Is Intensifying
• Negative Sentiment: Market reaction summary pieces note shares were down intraday (about 1.5% in one report), reflecting the combined weight of downgrades and competition concerns — short‑term pressure is likely sentiment‑driven rather than fundamental‑earnings surprises. Adobe (NASDAQ:ADBE) Stock Price Down 1.5% – Should You Sell?

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.