Parallel Advisors LLC Lowers Stake in Adobe Inc. $ADBE

Parallel Advisors LLC reduced its stake in shares of Adobe Inc. (NASDAQ:ADBE) by 9.9% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 29,011 shares of the software company’s stock after selling 3,190 shares during the quarter. Parallel Advisors LLC’s holdings in Adobe were worth $10,159,000 at the end of the most recent quarter.

Other hedge funds also recently added to or reduced their stakes in the company. Willis Investment Counsel lifted its stake in Adobe by 138.9% in the fourth quarter. Willis Investment Counsel now owns 40,715 shares of the software company’s stock worth $14,250,000 after acquiring an additional 23,671 shares during the period. Victory Capital Management Inc. lifted its stake in Adobe by 112.6% in the third quarter. Victory Capital Management Inc. now owns 1,341,410 shares of the software company’s stock worth $469,467,000 after acquiring an additional 710,357 shares during the period. Nicholas Company Inc. lifted its stake 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 acquiring an additional 12,400 shares during the period. Diamond Hill Capital Management Inc. lifted its stake in Adobe by 20.6% in the third quarter. Diamond Hill Capital Management Inc. now owns 1,024,473 shares of the software company’s stock worth $361,383,000 after acquiring an additional 174,891 shares during the period. Finally, Teacher Retirement System of Texas lifted its stake in Adobe by 13.4% in the fourth quarter. Teacher Retirement System of Texas now owns 215,611 shares of the software company’s stock worth $75,462,000 after acquiring an additional 25,435 shares during the period. 81.79% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

ADBE has been the subject of a number of research reports. KeyCorp lowered their price objective on shares of Adobe from $310.00 to $235.00 and set an “underweight” rating for the company in a research note on Friday, March 13th. The Goldman Sachs Group decreased their price target on shares of Adobe from $290.00 to $220.00 and set a “sell” rating for the company in a research report on Friday, March 13th. Wells Fargo & Company decreased their price target on shares of Adobe from $420.00 to $405.00 and set an “overweight” rating for the company in a research report on Monday, March 9th. Barclays lowered shares of Adobe from an “overweight” rating to an “equal weight” rating and decreased their price target for the company from $335.00 to $275.00 in a research report on Friday, March 13th. Finally, Mizuho reissued a “neutral” rating and set a $270.00 price target (down from $315.00) on shares of Adobe in a research report on Monday, April 27th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, seventeen have issued a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat, Adobe has a consensus rating of “Hold” and an average target price of $338.15.

Adobe Stock Performance

ADBE stock opened at $258.42 on Friday. The firm has a market cap of $104.45 billion, a price-to-earnings ratio of 15.05, a PEG ratio of 1.00 and a beta of 1.42. The firm has a 50-day simple moving average of $245.51 and a two-hundred day simple moving average of $282.08. Adobe Inc. has a one year low of $224.13 and a one year high of $421.48. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.91 and a current ratio of 0.91.

Adobe (NASDAQ:ADBE) last released its quarterly earnings results on Thursday, March 12th. The software company reported $6.06 EPS for the quarter, beating the consensus estimate of $5.87 by $0.19. The business had revenue of $6.40 billion during the quarter, compared to analyst estimates of $6.28 billion. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The company’s quarterly revenue was up 12.0% on a year-over-year basis. During the same period in the prior year, the firm posted $5.08 earnings per share. 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 EPS for the current fiscal year.

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

More Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Analysts are looking for Adobe to report earnings growth next week, and several previews suggest the company has a strong setup for a possible beat thanks to resilient fundamentals and expectations that it can clear Wall Street targets. Adobe Systems (ADBE) Reports Next Week: Wall Street Expects Earnings Growth
• Positive Sentiment: Adobe is also being discussed as a stock to watch in digital media and AI-related software, which keeps the company in focus as investors look for names that can benefit from AI spending and software demand. Digital Media Stocks Worth Watching – June 1st
• Neutral Sentiment: Reports say Adobe is close to choosing its next CEO and is weighing internal candidates alongside outside AI-focused leaders. That uncertainty could keep the stock volatile, but it also signals a strategic push to align leadership with the company’s AI ambitions. Adobe Eyes Two Internal Leaders, AI Outsiders for CEO Role
• Neutral Sentiment: Market commentary also noted Adobe has been falling more than the broader market in recent sessions, reflecting broader caution around software valuations and investor concern ahead of the earnings report. Here’s Why Adobe Systems (ADBE) Fell More Than Broader Market
• Negative Sentiment: Some recent trading weakness in Adobe appears tied to broader tech-sector mixed performance and profit-taking, which may be weighing on shares until the company provides a clearer earnings and leadership catalyst. Sector Update: Tech Stocks Mixed Late Afternoon

Insider Activity at Adobe

In related news, CAO Jillian Forusz sold 755 shares of the stock in a transaction that occurred on 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 directly owned 3,521 shares of the company’s stock, valued at $867,046.25. This trade represents a 17.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Daniel Durn sold 1,336 shares of the stock in a transaction that occurred on 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 directly owned 42,833 shares of the company’s stock, valued at $10,623,440.66. The trade was a 3.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 77,091 shares of company stock valued at $18,782,773 in the last three months. 0.20% of the stock is owned by insiders.

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.