Capital World Investors Sells 1,820,992 Shares of Adobe Inc. $ADBE

Capital World Investors reduced its stake in shares of Adobe Inc. (NASDAQ:ADBE) by 38.1% during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 2,963,299 shares of the software company’s stock after selling 1,820,992 shares during the quarter. Capital World Investors owned 0.71% of Adobe worth $1,045,304,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Riverbend Wealth Management LLC grew its stake in Adobe by 1.8% in the third quarter. Riverbend Wealth Management LLC now owns 1,668 shares of the software company’s stock worth $588,000 after purchasing an additional 29 shares during the period. Intellus Advisors LLC grew its holdings in shares of Adobe by 1.6% in the second quarter. Intellus Advisors LLC now owns 1,860 shares of the software company’s stock worth $720,000 after acquiring an additional 30 shares during the period. Beacon Financial Advisory LLC raised its position in Adobe by 5.5% in the third quarter. Beacon Financial Advisory LLC now owns 577 shares of the software company’s stock worth $204,000 after acquiring an additional 30 shares during the period. MCF Advisors LLC raised its stake in Adobe by 20.8% during the 3rd quarter. MCF Advisors LLC now owns 174 shares of the software company’s stock worth $61,000 after acquiring an additional 30 shares during the period. Finally, Dakota Community Bank & Trust NA lifted its position in shares of Adobe by 12.8% in the second quarter. Dakota Community Bank & Trust NA now owns 274 shares of the software company’s stock valued at $106,000 after acquiring an additional 31 shares in the last quarter. 81.79% of the stock is currently owned by institutional investors.

Key Stories Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe launched conversational AI editing in Photoshop and smarter Firefly image‑editing tools (public beta), enhancing product differentiation and upsell potential for Creative Cloud customers. Read More.
• Positive Sentiment: Adobe expanded its MLB partnership to deliver AI‑driven fan experiences — a commercial reference point that can help sell Adobe Experience Cloud and related services to large brands. Read More.
• Neutral Sentiment: Market focus on Q1 results (reporting March 12) is raising volatility — options traders expect a sizeable move and several earnings previews highlight that revenue/EPS beats or a cautious guide could swing the stock either way. Read More.
• Negative Sentiment: Multiple analysts trimmed targets and tone: TD Cowen cut its PT to $325 (hold) and Citigroup reduced its target as well — analyst downgrades are weighing on sentiment and were cited as a near‑term catalyst for the selloff. Read More.
• Negative Sentiment: Short interest rose in February to ~14.3M shares (about 3.5% of shares outstanding, ~2.9 days to cover) — higher short exposure increases downside pressure and volatility into earnings. (Data reported in market notices.)
• Negative Sentiment: Emerging competitors and open‑source AI initiatives (e.g., Veeso, Nvidia’s NemoClaw) highlight intensifying competition in AI‑driven design tools, which could pressure growth assumptions if Adobe’s commercial traction lags. Read More. and Read More.

Wall Street Analyst Weigh In

ADBE has been the topic of a number of research reports. HSBC set a $302.00 price objective on Adobe in a research note on Friday, February 13th. Mizuho dropped their target price on shares of Adobe from $410.00 to $390.00 and set an “outperform” rating on the stock in a report on Thursday, November 20th. DA Davidson reaffirmed a “buy” rating and issued a $500.00 price objective on shares of Adobe in a research report on Thursday, December 11th. Wells Fargo & Company cut their target price on Adobe from $420.00 to $405.00 and set an “overweight” rating on the stock in a research report on Monday. Finally, Royal Bank Of Canada reiterated an “outperform” rating and set a $430.00 price target on shares of Adobe in a research report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, eleven have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $383.08.

Adobe Stock Down 2.6%

Shares of NASDAQ:ADBE opened at $275.13 on Wednesday. The firm has a fifty day moving average price of $288.69 and a 200 day moving average price of $324.75. Adobe Inc. has a 1-year low of $244.28 and a 1-year high of $443.90. The stock has a market cap of $112.94 billion, a P/E ratio of 16.47, a P/E/G ratio of 1.11 and a beta of 1.53. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.00 and a quick ratio of 1.00.

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

Insider Activity at Adobe

In other news, CFO Daniel Durn sold 1,646 shares of the company’s stock in a transaction on Tuesday, January 27th. The shares were sold at an average price of $294.85, for a total value of $485,323.10. Following the completion of the transaction, the chief financial officer directly owned 41,995 shares in the company, valued at approximately $12,382,225.75. This represents a 3.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 0.20% of the company’s stock.

Adobe 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.