Adobe Inc. $ADBE Position Increased by Legato Capital Management LLC

Legato Capital Management LLC increased its position in shares of Adobe Inc. (NASDAQ:ADBE) by 60.7% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 8,127 shares of the software company’s stock after acquiring an additional 3,070 shares during the period. Legato Capital Management LLC’s holdings in Adobe were worth $2,844,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also modified their holdings of the company. Federated Hermes Inc. raised its holdings in shares of Adobe by 185.1% during the third quarter. Federated Hermes Inc. now owns 898,408 shares of the software company’s stock worth $316,913,000 after acquiring an additional 583,275 shares in the last quarter. Willis Investment Counsel raised its holdings in shares of Adobe by 138.9% during the 4th quarter. Willis Investment Counsel now owns 40,715 shares of the software company’s stock valued at $14,250,000 after purchasing an additional 23,671 shares in the last quarter. Jones Financial Companies Lllp raised its holdings in shares of Adobe by 43.8% during the 3rd quarter. Jones Financial Companies Lllp now owns 106,598 shares of the software company’s stock valued at $38,309,000 after purchasing an additional 32,448 shares in the last quarter. Victory Capital Management Inc. raised its holdings in shares of Adobe by 112.6% during the 3rd quarter. Victory Capital Management Inc. now owns 1,341,410 shares of the software company’s stock valued at $469,467,000 after purchasing an additional 710,357 shares in the last quarter. Finally, Nicholas Company Inc. boosted its holdings in Adobe by 7.6% in the fourth quarter. Nicholas Company Inc. now owns 174,626 shares of the software company’s stock worth $61,117,000 after purchasing an additional 12,400 shares in the last quarter. 81.79% of the stock is currently owned by hedge funds and other institutional investors.

More Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe is getting fresh buzz from its deeper integration with Google Gemini, including the ability for users to access Photoshop and Premiere Pro tools inside the AI assistant. That could expand Adobe’s reach and strengthen demand for its creative software. Article Title
• Positive Sentiment: Articles highlighting Adobe’s Digital Experience business say the company is well positioned to benefit from the digital content boom, with Experience Cloud and AI tools like Firefly and Sensei serving demand in ads and e-commerce. Article Title
• Positive Sentiment: Some market commentary argues Adobe looks inexpensive relative to its growth outlook after the broad software selloff, which may be attracting value-oriented investors. Article Title
• Neutral Sentiment: Additional coverage says Adobe is using agentic AI to defend its software moat, reinforcing the view that management is leaning into AI to support its competitive position. Article Title
• Negative Sentiment: One market recap noted Adobe stock fell in the latest session while the broader market advanced, underscoring continued volatility and investor caution around the name. Article Title
• Negative Sentiment: Governance-related headlines are also adding a small overhang, with renewed attention on trading activity tied to Adobe shares amid existing shareholder litigation. Article Title

Wall Street Analysts Forecast Growth

ADBE has been the subject of a number of recent research reports. Wells Fargo & Company decreased their price objective on shares of Adobe from $420.00 to $405.00 and set an “overweight” rating for the company in a report on Monday, March 9th. Jefferies Financial Group decreased their price objective on shares of Adobe from $400.00 to $290.00 and set a “hold” rating for the company in a report on Monday, February 23rd. Royal Bank Of Canada decreased their price objective on shares of Adobe from $400.00 to $350.00 and set an “outperform” rating for the company in a report on Friday, April 17th. Barclays cut shares of Adobe from an “overweight” rating to an “equal weight” rating and decreased their price objective for the stock from $335.00 to $275.00 in a report on Friday, March 13th. Finally, Stifel Nicolaus decreased their price objective on shares of Adobe from $450.00 to $400.00 and set a “buy” rating for the company in a report on Friday, March 13th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, seventeen have assigned a Hold rating and five have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $338.15.

Adobe Stock Performance

ADBE opened at $244.76 on Friday. The firm has a market capitalization of $98.93 billion, a P/E ratio of 14.26, a price-to-earnings-growth ratio of 0.95 and a beta of 1.42. The stock’s 50 day moving average price is $245.05 and its two-hundred day moving average price is $287.46. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.47. Adobe Inc. has a 12-month low of $224.13 and a 12-month high of $421.48.

Adobe (NASDAQ:ADBE) last released its earnings results on Thursday, March 12th. The software company reported $6.06 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.87 by $0.19. The firm had revenue of $6.40 billion for the quarter, compared to analyst estimates of $6.28 billion. Adobe had a return on equity of 64.48% and a net margin of 29.48%.The company’s revenue was up 12.0% on a year-over-year basis. During the same quarter last year, the firm posted $5.08 EPS. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. On average, equities analysts forecast that Adobe Inc. will post 19.14 earnings per share for the current year.

Adobe declared that its Board of Directors has approved a share buyback plan on Tuesday, April 21st that authorizes the company to buyback $25.00 billion in shares. This buyback authorization authorizes the software company to reacquire up to 24.9% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling at Adobe

In other news, CFO Daniel Durn sold 1,336 shares of the company’s stock in a transaction dated Monday, April 20th. The shares were sold at an average price of $248.02, for a total transaction of $331,354.72. Following the completion of the transaction, the chief financial officer owned 42,833 shares of the company’s stock, valued at approximately $10,623,440.66. This represents a 3.02% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Shantanu Narayen sold 75,000 shares of the company’s stock in a transaction dated Tuesday, April 28th. The shares were sold at an average price of $243.54, for a total transaction of $18,265,500.00. Following the transaction, the chief executive officer directly owned 359,538 shares of the company’s stock, valued at $87,561,884.52. This represents a 17.26% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 77,091 shares of company stock valued at $18,782,773 in the last 90 days. 0.20% of the stock is currently owned by insiders.

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.