Adobe (NASDAQ:ADBE) Hits New 1-Year Low – What’s Next?

Adobe Inc. (NASDAQ:ADBE) reached a new 52-week low during trading on Thursday . The company traded as low as $228.39 and last traded at $229.47, with a volume of 544496 shares traded. The stock had previously closed at $239.31.

Analyst Upgrades and Downgrades

A number of analysts recently commented on ADBE shares. The Goldman Sachs Group dropped their target price on shares of Adobe from $290.00 to $220.00 and set a “sell” rating on the stock in a report on Friday, March 13th. Sanford C. Bernstein set a $447.00 target price on shares of Adobe and gave the stock an “outperform” rating in a report on Friday, March 13th. Piper Sandler dropped their target price on shares of Adobe from $330.00 to $280.00 and set a “neutral” rating on the stock in a report on Friday, March 13th. Wells Fargo & Company cut their price target on shares of Adobe from $420.00 to $405.00 and set an “overweight” rating on the stock in a report on Monday, March 9th. Finally, HSBC set a $302.00 price target on shares of Adobe in a report on Friday, February 13th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, fourteen have given a Hold rating and five have issued a Sell rating to the company. According to MarketBeat.com, Adobe has a consensus rating of “Hold” and an average price target of $343.88.

Adobe Price Performance

The stock’s fifty day moving average price is $259.42 and its 200-day moving average price is $309.09. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.91 and a quick ratio of 0.91. The firm has a market cap of $93.48 billion, a price-to-earnings ratio of 13.43, a price-to-earnings-growth ratio of 0.95 and a beta of 1.52.

Adobe (NASDAQ:ADBE) last released its quarterly 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. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The business had revenue of $6.40 billion for the quarter, compared to analyst estimates of $6.28 billion. During the same quarter in the previous year, the business earned $5.08 earnings per share. The firm’s revenue was up 12.0% compared to the same quarter last year. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. Equities research analysts predict that Adobe Inc. will post 16.65 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO Daniel Durn sold 1,646 shares of the business’s stock in a transaction that occurred on Tuesday, January 27th. The shares were sold at an average price of $294.85, for a total transaction of $485,323.10. Following the transaction, the chief financial officer directly owned 41,995 shares of the company’s stock, 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 document filed with the SEC, which is accessible through the SEC website. Insiders own 0.20% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ADBE. Norges Bank purchased a new position in Adobe during the fourth quarter valued at approximately $2,275,165,000. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Adobe by 53.3% during 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 buying an additional 1,952,994 shares during the period. Dodge & Cox boosted its holdings 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 worth $562,109,000 after buying an additional 1,573,849 shares during the period. AQR Capital Management LLC boosted its holdings in shares of Adobe by 55.2% during the 3rd quarter. AQR Capital Management LLC now owns 2,587,399 shares of the software company’s stock worth $912,705,000 after buying an additional 920,353 shares during the period. Finally, Amundi raised its stake in Adobe by 17.9% during the 3rd quarter. Amundi now owns 4,888,283 shares of the software company’s stock valued at $1,711,583,000 after purchasing an additional 742,646 shares during the last quarter. 81.79% of the stock is owned by hedge funds and other institutional investors.

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.