Adobe (NASDAQ:ADBE) Stock Price Up 1.3% – Still a Buy?

Adobe Inc. (NASDAQ:ADBE)’s share price traded up 1.3% during mid-day trading on Tuesday . The company traded as high as $336.40 and last traded at $335.99. 3,182,693 shares changed hands during mid-day trading, a decline of 31% from the average session volume of 4,612,069 shares. The stock had previously closed at $331.56.

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Analysts still publishing Q1/FY forecasts — Research notes compiling analyst predictions suggest the market has clear expectations for Q1 and FY26 EPS, which can support valuations if Adobe meets guidance. Research Analysts Offer Predictions for Adobe Q1 Earnings
• Neutral Sentiment: In-depth competitor analysis — Recent pieces comparing Adobe to peers review strengths and competitive positioning; useful for longer-term investors but not an immediate catalyst. In-Depth Analysis: Adobe Versus Competitors In Software Industry
• Neutral Sentiment: Sector context: IBM upgrade vs. Adobe downgrade — Coverage changes reflect a broader re-rate in software names as analysts pivot around which companies will accelerate AI adoption the fastest; this is context-setting rather than company-specific news. IBM Stock Is an ‘Acceleration Story,’ Say Analysts. Why Adobe Doesn’t Get the Same Vote of Confidence.
• Negative Sentiment: Jefferies downgrade to “hold” — Jefferies cited a limited AI inflection for Adobe and cut its rating, a direct trigger for the recent pullback and lower analyst conviction. Jefferies downgrades Adobe, upgrades IBM as AI reshapes 2026 software outlook
• Negative Sentiment: Downgrade-driven pullback — Coverage of the downgrade shows an immediate negative impact on the share price, extending a short-term pullback. Adobe Stock Extends Pullback on Downgrade
• Negative Sentiment: Broader selloff and AI skepticism — Coverage highlights a multi-day decline and sizable market-cap erosion as investors question how quickly Adobe’s AI initiatives will drive upside. Why Is Adobe Stock Getting Downgraded?
• Negative Sentiment: Bearish commentary and alternative ideas — Opinion pieces list valuation and execution risks and suggest other stocks as alternatives, increasing negative sentiment among some retail/institutional readers. 3 Reasons ADBE is Risky and 1 Stock to Buy Instead
• Negative Sentiment: Early-2026 selloff coverage — Reports note Adobe was part of a wider ~5% drop in software names at the start of 2026, underscoring sector pressure rather than a company-specific shock. Salesforce and Adobe Start 2026 With a 5% Plunge—Should Investors Buy or Bail?

Analysts Set New Price Targets

ADBE has been the topic of several recent research reports. Piper Sandler cut their price objective on shares of Adobe from $500.00 to $470.00 and set an “overweight” rating on the stock in a research report on Friday, September 12th. Stifel Nicolaus cut their price target on Adobe from $480.00 to $450.00 and set a “buy” rating on the stock in a report on Tuesday, December 9th. Morgan Stanley decreased their price objective on Adobe from $450.00 to $425.00 and set an “equal weight” rating for the company in a report on Thursday, December 11th. Evercore ISI dropped their price target on Adobe from $475.00 to $450.00 and set an “outperform” rating on the stock in a report on Friday, September 12th. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Adobe in a research report on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, twelve have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $414.22.

Adobe Trading Up 1.3%

The company’s 50-day moving average is $337.76 and its 200 day moving average is $350.93. The company has a current ratio of 1.00, a quick ratio of 1.02 and a debt-to-equity ratio of 0.53. The firm has a market cap of $140.65 billion, a PE ratio of 20.11, a P/E/G ratio of 1.31 and a beta of 1.53.

Adobe (NASDAQ:ADBE) last announced its earnings results on Wednesday, December 10th. The software company reported $5.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.40 by $0.10. The company had revenue of $6.19 billion for the quarter, compared to the consensus estimate of $6.11 billion. Adobe had a net margin of 30.00% and a return on equity of 61.28%. The company’s revenue was up 10.5% on a year-over-year basis. During the same period in the previous year, the business earned $4.81 EPS. 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, sell-side analysts predict that Adobe Inc. will post 16.65 EPS for the current year.

Insider Buying and Selling

In other Adobe news, CAO Jillian Forusz sold 149 shares of the firm’s stock in a transaction dated Friday, October 31st. The stock was sold at an average price of $337.88, for a total transaction of $50,344.12. Following the completion of the sale, the chief accounting officer directly owned 3,426 shares in the company, valued at approximately $1,157,576.88. This trade represents a 4.17% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 0.16% of the company’s stock.

Institutional Trading of Adobe

Hedge funds have recently made changes to their positions in the stock. LSV Asset Management increased its stake in Adobe by 350.0% in the 2nd quarter. LSV Asset Management now owns 72 shares of the software company’s stock valued at $28,000 after buying an additional 56 shares during the period. Measured Wealth Private Client Group LLC purchased a new position in shares of Adobe during the 3rd quarter valued at $26,000. Flaharty Asset Management LLC purchased a new position in shares of Adobe during the 1st quarter valued at $29,000. Caitlin John LLC acquired a new position in shares of Adobe in the third quarter worth $28,000. Finally, Nexus Investment Management ULC purchased a new stake in shares of Adobe during the second quarter worth $31,000. 81.79% of the stock is owned by hedge funds and other institutional investors.

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.