Grace & Mercy Foundation Inc. Sells 52,000 Shares of Adobe Inc. $ADBE

Grace & Mercy Foundation Inc. decreased its stake in shares of Adobe Inc. (NASDAQ:ADBE) by 43.9% during the 3rd quarter, according to the company in its most recent filing with the SEC. The firm owned 66,320 shares of the software company’s stock after selling 52,000 shares during the quarter. Adobe accounts for about 5.0% of Grace & Mercy Foundation Inc.’s investment portfolio, making the stock its 8th biggest position. Grace & Mercy Foundation Inc.’s holdings in Adobe were worth $23,394,000 as of its most recent filing with the SEC.

A number of other large investors have also made changes to their positions in the stock. LSV Asset Management grew its position in Adobe by 350.0% during the second quarter. LSV Asset Management now owns 72 shares of the software company’s stock worth $28,000 after buying an additional 56 shares in the last quarter. Caitlin John LLC acquired a new position in Adobe in the 3rd quarter valued at approximately $28,000. Horizon Financial Services LLC raised its holdings in Adobe by 4,000.0% in the 2nd quarter. Horizon Financial Services LLC now owns 82 shares of the software company’s stock valued at $32,000 after acquiring an additional 80 shares in the last quarter. Total Investment Management Inc. bought a new stake in shares of Adobe in the 2nd quarter worth approximately $35,000. Finally, Howard Hughes Medical Institute acquired a new stake in shares of Adobe during the 2nd quarter worth approximately $36,000. Institutional investors and hedge funds own 81.79% of the company’s stock.

Adobe News Summary

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Record Q1 results and AI traction — Adobe posted above‑consensus Q1 revenue and EPS and highlighted rapid AI-first ARR growth; management framed the quarter as an AI‑led acceleration, which supports the company’s long‑term revenue mix and margins. Adobe Delivers Record Q1 Results
• Neutral Sentiment: Guidance shows upside but raises questions — Adobe’s FY26 EPS range and Q2 outlook exceeded consensus, yet investors parsed the details (ARR cadence, freemium strategy) for sustainability before rewarding the stock. Adobe Q1 earnings & guidance
• Neutral Sentiment: Short‑interest figures reported inconsistently — publicly posted short data showed anomalous/zero values (NaN/0), so current short‑squeeze risk or bearish positioning is unclear.
• Negative Sentiment: DOJ settlement adds immediate cost and reputational overhang — Adobe agreed to a $150M package (roughly $75M cash + $75M in free services) to resolve claims about hard‑to‑cancel subscriptions, creating a headline liability and consumer‑facing remediation burden. Adobe agrees to pay $150 million to resolve alleged violations
• Negative Sentiment: CEO succession uncertainty — Shantanu Narayen announced he will step down once a successor is named (he will remain board chair), creating near‑term leadership uncertainty at a critical time for Adobe’s AI strategy and execution. Shantanu Narayen Announces Decision to Transition as Adobe’s CEO
• Negative Sentiment: Analyst downgrades and lower targets amplify selling — Several firms cut price targets or moved to neutral/equal‑weight, citing CEO transition and mixed ARR trends, which pressured sentiment and triggered further mark‑downs. These Analysts Cut Their Forecasts On Adobe Following Q1 Earnings

Adobe Stock Down 7.6%

Shares of NASDAQ:ADBE opened at $249.32 on Monday. Adobe Inc. has a 12 month low of $244.28 and a 12 month high of $422.95. The company’s 50-day moving average price is $283.88 and its two-hundred day moving average price is $322.76. The company has a quick ratio of 1.00, a current ratio of 0.91 and a debt-to-equity ratio of 0.47. The firm has a market cap of $102.35 billion, a P/E ratio of 14.52, a P/E/G ratio of 0.98 and a beta of 1.53.

Adobe (NASDAQ:ADBE) last announced its earnings results on Thursday, March 12th. The software company reported $6.06 earnings per share for the quarter, topping 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 company had revenue of $6.40 billion during the quarter, compared to the consensus estimate of $6.28 billion. During the same period in the previous year, the firm posted $5.08 earnings per share. The company’s revenue 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, research analysts forecast that Adobe Inc. will post 16.65 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on ADBE shares. Jefferies Financial Group lowered their price objective on Adobe from $400.00 to $290.00 and set a “hold” rating on the stock in a research report on Monday, February 23rd. Mizuho reduced their target price on Adobe from $340.00 to $315.00 and set an “outperform” rating for the company in a research report on Friday. HSBC set a $302.00 price target on shares of Adobe in a research note on Friday, February 13th. Wall Street Zen raised shares of Adobe from a “hold” rating to a “buy” rating in a report on Saturday, March 7th. Finally, The Goldman Sachs Group set a $220.00 price objective on shares of Adobe and gave the stock a “sell” rating in a report on Friday. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, twelve have issued a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $347.85.

Insider Buying and Selling at Adobe

In other news, CFO Daniel Durn sold 1,646 shares of the business’s 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 sale, the chief financial officer owned 41,995 shares in the company, valued at $12,382,225.75. The trade was a 3.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.20% of the stock is currently 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.