Adobe (NASDAQ:ADBE) Price Target Lowered to $230.00 at BMO Capital Markets

Adobe (NASDAQ:ADBE) had its target price dropped by research analysts at BMO Capital Markets from $285.00 to $230.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage currently has a “market perform” rating on the software company’s stock. BMO Capital Markets’ price objective suggests a potential upside of 14.06% from the company’s current price.

A number of other equities research analysts have also recently commented on ADBE. Evercore set a $225.00 price target on Adobe in a research note on Friday. Morgan Stanley cut their price target on shares of Adobe from $425.00 to $365.00 and set an “equal weight” rating on the stock in a research note on Friday, March 13th. The Goldman Sachs Group reiterated a “sell” rating and set a $190.00 price objective on shares of Adobe in a research note on Friday. Citigroup reissued a “market perform” rating on shares of Adobe in a research report on Friday. Finally, Jefferies Financial Group set a $230.00 price target on shares of Adobe in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, eighteen have given a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat.com, Adobe has an average rating of “Hold” and a consensus price target of $295.58.

Adobe Stock Performance

Shares of NASDAQ:ADBE opened at $201.64 on Friday. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.47. The company has a market capitalization of $81.50 billion, a price-to-earnings ratio of 11.61, a price-to-earnings-growth ratio of 0.91 and a beta of 1.42. The firm has a 50 day moving average of $245.29 and a 200 day moving average of $279.13. Adobe has a 52 week low of $197.93 and a 52 week high of $405.00.

Adobe (NASDAQ:ADBE) last issued its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 earnings per share for the quarter, topping analysts’ consensus estimates of $5.82 by $0.14. The firm had revenue of $6.62 billion during the quarter, compared to analysts’ expectations of $6.45 billion. Adobe had a return on equity of 64.48% and a net margin of 29.48%.The firm’s quarterly revenue was up 12.7% on a year-over-year basis. During the same period in the prior year, the business posted $5.06 EPS. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. On average, sell-side analysts predict that Adobe will post 19.14 earnings per share for the current fiscal year.

Adobe announced that its Board of Directors has initiated a share buyback program on Tuesday, April 21st that permits the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization permits the software company to purchase up to 24.9% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling

In other news, CAO Jillian Forusz sold 755 shares of the stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $246.25, for a total value of $185,918.75. Following the completion of the sale, the chief accounting officer directly owned 3,521 shares in the company, valued at $867,046.25. This represents a 17.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Shantanu Narayen sold 75,000 shares of the company’s stock in a transaction dated Tuesday, April 28th. The shares were sold at an average price of $243.54, for a total transaction of $18,265,500.00. Following the sale, the chief executive officer directly owned 359,538 shares of the company’s stock, valued at approximately $87,561,884.52. This represents a 17.26% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 77,091 shares of company stock worth $18,782,773. 0.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Adobe

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Brighton Jones LLC grew its stake in shares of Adobe by 2.1% in the 4th quarter. Brighton Jones LLC now owns 8,068 shares of the software company’s stock valued at $3,588,000 after buying an additional 167 shares during the period. Sivia Capital Partners LLC increased its stake in Adobe by 25.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company’s stock worth $926,000 after buying an additional 486 shares during the period. United Bank boosted its position in Adobe by 12.8% in the 2nd quarter. United Bank now owns 3,773 shares of the software company’s stock valued at $1,460,000 after buying an additional 428 shares during the period. Schnieders Capital Management LLC. grew its stake in shares of Adobe by 7.8% in the second quarter. Schnieders Capital Management LLC. now owns 2,630 shares of the software company’s stock worth $1,017,000 after acquiring an additional 190 shares in the last quarter. Finally, Gamco Investors INC. ET AL increased its position in shares of Adobe by 190.6% during the second quarter. Gamco Investors INC. ET AL now owns 2,764 shares of the software company’s stock worth $1,069,000 after acquiring an additional 1,813 shares during the period. Institutional investors and hedge funds own 81.79% of the company’s stock.

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe delivered a double beat in Q2, with revenue and EPS both topping Wall Street expectations, and it raised FY2026 and Q3 guidance. Adobe Reports Record Q2 Results
• Positive Sentiment: Management said AI-driven demand and stronger subscription spending are supporting growth, and Adobe reiterated a push into freemium AI products to expand users. ADBE Q2 Earnings Call Centers on Freemium AI Push, Raised Outlook
• Neutral Sentiment: Several analysts lowered price targets after the report, but most kept a neutral stance, suggesting the results were solid while near-term upside looks limited. These Analysts Slash Their Forecasts On Adobe Following Q2 Earnings
• Negative Sentiment: Investor concern centered on unchanged annual recurring revenue expectations, which raised doubts that Adobe’s AI push will quickly translate into durable growth. Adobe Beats Expectations and Raises Outlook, but Shares Fall on ARR Concerns
• Negative Sentiment: Adobe also announced that CFO Dan Durn is departing, adding leadership uncertainty on top of the ongoing CEO succession process. Adobe raises annual revenue forecast, CFO to exit

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.