Adobe (NASDAQ:ADBE) Downgraded by Dbs Bank to “Hold”

Dbs Bank cut shares of Adobe (NASDAQ:ADBE) from a moderate buy rating to a hold rating in a research note released on Tuesday morning,Zacks.com reports.

A number of other analysts have also issued reports on ADBE. Weiss Ratings lowered Adobe from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, March 6th. BMO Capital Markets lowered their target price on Adobe from $375.00 to $285.00 and set a “market perform” rating on the stock in a report on Friday, March 13th. Stifel Nicolaus lowered their target price on Adobe from $450.00 to $400.00 and set a “buy” rating on the stock in a report on Friday, March 13th. Wells Fargo & Company lowered their target price on Adobe from $420.00 to $405.00 and set an “overweight” rating on the stock in a report on Monday, March 9th. Finally, KeyCorp reduced their price objective on Adobe from $310.00 to $235.00 and set an “underweight” rating for the company in a research report on Friday, March 13th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, seventeen have given a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $338.15.

Adobe Stock Performance

Shares of NASDAQ ADBE opened at $254.99 on Tuesday. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.91 and a current ratio of 0.91. The firm has a market cap of $103.07 billion, a price-to-earnings ratio of 14.85, a P/E/G ratio of 1.00 and a beta of 1.42. The business’s 50-day simple moving average is $246.83 and its 200-day simple moving average is $289.04. Adobe has a 52 week low of $224.13 and a 52 week high of $422.95.

Adobe (NASDAQ:ADBE) last released its earnings results on Thursday, March 12th. The software company reported $6.06 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.87 by $0.19. The firm had revenue of $6.40 billion for the quarter, compared to analyst estimates of $6.28 billion. Adobe had a return on equity of 64.48% and a net margin of 29.48%.The company’s revenue was up 12.0% on a year-over-year basis. During the same quarter last year, the firm posted $5.08 EPS. 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, equities research analysts expect that Adobe will post 19.14 earnings per share for the current fiscal year.

Adobe declared that its board has approved a stock buyback program on Tuesday, April 21st that authorizes the company to buyback $25.00 billion in shares. This buyback authorization authorizes the software company to reacquire up to 24.9% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling

In related news, CFO Daniel Durn sold 1,336 shares of the firm’s stock in a transaction that occurred on Monday, April 20th. The stock was 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 owned 42,833 shares in the company, valued at $10,623,440.66. This trade represents a 3.02% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Shantanu Narayen sold 75,000 shares of the firm’s stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $243.54, for a total value of $18,265,500.00. Following the transaction, the chief executive officer owned 359,538 shares of the company’s stock, valued at $87,561,884.52. This trade represents a 17.26% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 77,091 shares of company stock worth $18,782,773 in the last 90 days. 0.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Adobe

Hedge funds and other institutional investors have recently modified their holdings of the stock. Western Pacific Wealth Management LP bought a new position in Adobe in the 4th quarter valued at $26,000. Measured Wealth Private Client Group LLC bought a new position in Adobe in the 3rd quarter valued at $26,000. KERR FINANCIAL PLANNING Corp bought a new position in Adobe in the 3rd quarter valued at $27,000. Caitlin John LLC bought a new position in Adobe in the 3rd quarter valued at $28,000. Finally, Beacon Financial Strategies CORP bought a new position in Adobe in the 4th quarter valued at $28,000. Institutional investors own 81.79% of the company’s stock.

Key Stories Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe was mentioned in bullish coverage that says the software rally may still have room to run, with the stock viewed as a quality name in the software group alongside ServiceNow. The software rally may still have legs. Buy ServiceNow and Adobe.
• Positive Sentiment: Adobe is drawing investor attention after reports that Michael Burry added the stock to his beaten-down picks, which can signal value appeal and support sentiment around ADBE. Michael Burry just loaded up on these 5 beaten-down stocks
• Positive Sentiment: Adobe announced a product expansion that brings professional creative tools into Google Gemini, and said a Premiere Android app is coming soon, reinforcing its AI and mobile growth story. Adobe brings professional creative tools straight into Google Gemini; Premiere Android app coming soon
• Positive Sentiment: Multiple articles called Adobe a top-ranked growth stock or a potential value opportunity, suggesting sentiment remains constructive despite the share price trading below prior highs. Adobe Systems (ADBE) is a Top-Ranked Growth Stock: Should You Buy?
• Neutral Sentiment: Adobe also appeared in a lawsuit-related notice from the Shareholders Foundation, which may keep legal risk in focus but does not appear to be the main trading driver today. Investors who lost money with Adobe Inc. (NASDAQ: ADBE) shares should contact the Shareholders Foundation in connection with Lawsuit

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.