State of Michigan Retirement System Reduces Stock Holdings in Adobe Inc. $ADBE

State of Michigan Retirement System lowered its stake in Adobe Inc. (NASDAQ:ADBE) by 2.6% during the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 123,223 shares of the software company’s stock after selling 3,300 shares during the period. State of Michigan Retirement System’s holdings in Adobe were worth $43,127,000 at the end of the most recent reporting period.

Other hedge funds have also added to or reduced their stakes in the company. Arrowstreet Capital Limited Partnership lifted its position in shares of Adobe by 53.3% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company’s stock worth $1,981,448,000 after purchasing an additional 1,952,994 shares during the period. Dodge & Cox boosted its stake in shares of Adobe by 8,006.6% during the 3rd quarter. Dodge & Cox now owns 1,593,506 shares of the software company’s stock valued at $562,109,000 after purchasing an additional 1,573,849 shares in the last quarter. AQR Capital Management LLC increased its position in shares of Adobe by 55.2% during the third quarter. AQR Capital Management LLC now owns 2,587,399 shares of the software company’s stock valued at $912,705,000 after buying an additional 920,353 shares during the period. Amundi increased its position in shares of Adobe by 17.9% during the third quarter. Amundi now owns 4,888,283 shares of the software company’s stock valued at $1,711,583,000 after buying an additional 742,646 shares during the period. Finally, Victory Capital Management Inc. raised 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 buying an additional 710,357 shares in the last quarter. 81.79% of the stock is owned by hedge funds and other institutional investors.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Board authorizes a $25 billion share buyback (through April 2030), signaling management confidence and explicit capital return plans that typically support the stock. Adobe Announces New $25 Billion Stock Repurchase Program
• Positive Sentiment: Adobe showcased agentic AI offerings across CX Enterprise, GenStudio, Firefly and Experience Manager at its Summit and highlighted partnerships (NVIDIA, Amazon, Microsoft, Anthropic, OpenAI) that bolster enterprise go‑to‑market credibility. Adobe bets on AI agents
• Positive Sentiment: Analysts and commentators reacted favorably to the Summit and partnerships; JPMorgan reiterated an Overweight view and flagged upside from Adobe’s AI positioning, helping lift sentiment. Adobe Unleashed: Why Nvidia’s CEO Says This AI Giant Is the Future of Marketing
• Neutral Sentiment: Adobe plans outcome‑based pricing for new AI products — could improve monetization if outcomes are proven, but adoption, measurement and revenue timing remain uncertain. Adobe Plans Outcome-Based Pricing
• Negative Sentiment: Some sell‑side firms have cut price targets or ratings (Morgan Stanley trimmed its target recently), keeping valuation and competitive concerns on the table. Adobe Is One Of The Stocks That Will Collapse Because Of AI
• Negative Sentiment: Short interest rose in mid‑April to roughly 14.7M shares (~3.7% of shares outstanding) — an increase in bearish positioning that can amplify downward moves if sentiment turns.
• Negative Sentiment: Insider activity: CFO Daniel Durn sold ~1,336 shares this week (disclosed via SEC filing), a small but visible insider sale. SEC Form 4 — Daniel Durn
• Negative Sentiment: Broader enterprise software weakness (after ServiceNow/IBM results) pressured the sector and contributed to an earlier pullback, highlighting macro/earnings‑linked downside risk. ServiceNow and IBM earnings reignite AI fears

Adobe Stock Performance

NASDAQ:ADBE opened at $245.44 on Monday. The firm has a market capitalization of $99.21 billion, a P/E ratio of 14.29, a PEG ratio of 0.96 and a beta of 1.52. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.91 and a quick ratio of 0.91. Adobe Inc. has a one year low of $224.13 and a one year high of $422.95. The company’s 50-day simple moving average is $251.85 and its 200 day simple moving average is $299.37.

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

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

Wall Street Analyst Weigh In

ADBE has been the topic of several research reports. William Blair cut Adobe from an “outperform” rating to a “market perform” rating in a research report on Thursday, March 26th. BMO Capital Markets decreased their target price on Adobe from $375.00 to $285.00 and set a “market perform” rating for the company in a research report on Friday, March 13th. Barclays cut Adobe from an “overweight” rating to an “equal weight” rating and lowered their target price for the company from $335.00 to $275.00 in a research note on Friday, March 13th. Argus restated a “hold” rating on shares of Adobe in a research report on Monday, March 16th. Finally, Wells Fargo & Company reduced their price target on Adobe from $420.00 to $405.00 and set an “overweight” rating on the stock in a research note on Monday, March 9th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, fifteen have given a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $339.88.

Insiders Place Their Bets

In other Adobe news, CFO Daniel Durn sold 1,646 shares of Adobe stock in a transaction 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 completion of the transaction, the chief financial officer owned 41,995 shares in the company, valued at approximately $12,382,225.75. The trade was a 3.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.20% of the stock is currently owned by company 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.