Adobe (NASDAQ:ADBE) Reaches New 52-Week Low – Time to Sell?

Adobe Inc. (NASDAQ:ADBE)’s share price reached a new 52-week low during trading on Monday . The stock traded as low as $246.21 and last traded at $246.7410, with a volume of 2036858 shares traded. The stock had previously closed at $258.61.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the stock. BMO Capital Markets cut shares of Adobe from an “outperform” rating to a “market perform” rating and decreased their target price for the company from $400.00 to $375.00 in a research note on Friday, January 9th. HSBC set a $302.00 price objective on shares of Adobe in a report on Friday, February 13th. Royal Bank Of Canada reissued an “outperform” rating and set a $430.00 target price on shares of Adobe in a research note on Thursday, December 11th. Barclays restated an “overweight” rating and set a $415.00 target price on shares of Adobe in a research report on Friday, December 5th. Finally, DA Davidson reaffirmed a “buy” rating and issued a $500.00 price target on shares of Adobe in a report on Thursday, December 11th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, twelve have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $392.76.

Adobe Trading Down 4.8%

The company has a 50 day moving average of $309.33 and a 200 day moving average of $331.68. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.00 and a current ratio of 1.00. The stock has a market capitalization of $101.04 billion, a price-to-earnings ratio of 14.72, a P/E/G ratio of 1.02 and a beta of 1.51.

Adobe (NASDAQ:ADBE) last issued its earnings results on Wednesday, December 10th. The software company reported $5.50 EPS for the quarter, beating analysts’ consensus estimates of $5.40 by $0.10. The business had revenue of $6.19 billion during the quarter, compared to analysts’ expectations of $6.11 billion. Adobe had a net margin of 30.00% and a return on equity of 61.28%. The company’s quarterly revenue was up 10.5% compared to the same quarter last year. During the same period in the prior year, the business earned $4.81 earnings per share. Adobe has set its Q1 2026 guidance at 5.850-5.900 EPS and its FY 2026 guidance at 23.300-23.500 EPS. On average, research analysts predict that Adobe Inc. will post 16.65 EPS for the current fiscal year.

Insider Buying and Selling at Adobe

In other news, CFO Daniel Durn sold 1,646 shares of the business’s stock in a transaction that occurred on Tuesday, January 27th. The stock was sold at an average price of $294.85, for a total transaction of $485,323.10. Following the transaction, the chief financial officer directly owned 41,995 shares in the company, valued at $12,382,225.75. The trade was a 3.77% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.16% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. lifted its holdings in Adobe by 0.8% in the third quarter. Vanguard Group Inc. now owns 41,369,395 shares of the software company’s stock valued at $14,593,054,000 after acquiring an additional 344,816 shares during the last quarter. State Street Corp boosted its stake in shares of Adobe by 1.7% in the third quarter. State Street Corp now owns 20,632,009 shares of the software company’s stock valued at $7,277,941,000 after purchasing an additional 352,448 shares during the period. Geode Capital Management LLC boosted its position in 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 buying an additional 414,049 shares during the period. Norges Bank acquired a new position in Adobe during the 4th quarter worth $2,275,165,000. Finally, Arrowstreet Capital Limited Partnership increased its holdings in Adobe by 10.9% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 6,228,503 shares of the software company’s stock worth $2,179,914,000 after purchasing an additional 611,358 shares during the period. Hedge funds and other institutional investors own 81.79% of the company’s stock.

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.