Adobe (NASDAQ:ADBE) Sets New 1-Year Low – Here’s What Happened

Adobe Inc. (NASDAQ:ADBE)’s share price hit a new 52-week low during trading on Wednesday . The company traded as low as $271.02 and last traded at $271.93, with a volume of 8286929 shares changing hands. The stock had previously closed at $293.38.

Key Stories Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Semrush shareholders approved the merger agreement with Adobe — the deal (SEO/marketing analytics) is expected to broaden Adobe’s marketing and data capabilities and create cross-sell opportunities for Experience Cloud customers. Semrush Shareholders Approve Merger Agreement with Adobe
• Positive Sentiment: Adobe is offering unlimited generations in its Firefly AI studio through March 16 — a product push that can accelerate user adoption of paid AI workflows and help defend share vs. competitors. Adobe Firefly Unlimited AI Generations
• Positive Sentiment: Some outlets still rate ADBE as a buy with sizable upside in models — this underpins longer-term bullish analyst conviction despite near-term pressure. Adobe Inc. (ADBE) a Moderate Buy, Analysts See 52% Upside
• Neutral Sentiment: Reported short-interest metrics are effectively meaningless/flat in recent tallies (no material change), so short squeezes are not a driver today.
• Neutral Sentiment: Comparisons to new Apple creative tools note competitive dynamics but conclude Apple isn’t yet an Adobe killer — a watch item for market share over time. Apple’s Creator Studio offers value, but is far from an Adobe killer
• Negative Sentiment: Adobe announced it will discontinue Adobe Animate (shutting down March 1), provoking customer backlash — a PR hit and potential churn in niche creator communities that may pressure sentiment. Adobe Animate is shutting down as company focuses on AI
• Negative Sentiment: Multiple firms have cut price targets or downgraded ADBE recently (UBS, Baird, BMO), which weighs on investor sentiment and reduces near-term analyst support. UBS, Baird Lower PT on Adobe (ADBE), BMO Capital Downgrades to Market Perform
• Negative Sentiment: Broader tech weakness and competitive moves (including Apple’s new bundle) have driven ADBE toward technical support/52-week lows as investors await Q1 guidance and execution proof. What’s Going On With Adobe Stock Tuesday?

Wall Street Analyst Weigh In

Several analysts have recently issued reports on the stock. Royal Bank Of Canada reissued an “outperform” rating and set a $430.00 price target on shares of Adobe in a research report on Thursday, December 11th. Robert W. Baird set a $350.00 price target on shares of Adobe in a research report on Wednesday, January 14th. Citigroup boosted their price target on shares of Adobe from $366.00 to $387.00 and gave the stock a “neutral” rating in a research note on Wednesday, December 17th. Wolfe Research decreased their target price on Adobe from $450.00 to $440.00 and set an “outperform” rating for the company in a report on Thursday, December 11th. Finally, Wells Fargo & Company lowered their target price on Adobe from $470.00 to $420.00 and set an “overweight” rating for the company in a research note on Thursday, November 20th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, eleven have issued a Hold rating and five have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $391.81.

Adobe Trading Down 7.3%

The firm has a market capitalization of $111.63 billion, a price-to-earnings ratio of 16.27, a PEG ratio of 1.15 and a beta of 1.51. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.00 and a current ratio of 1.00. The company has a 50-day moving average price of $327.29 and a 200-day moving average price of $340.48.

Adobe (NASDAQ:ADBE) last posted its earnings results on Wednesday, December 10th. The software company reported $5.50 earnings per share 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%.The firm’s revenue was up 10.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $4.81 earnings per share. Adobe has set its Q1 2026 guidance at 5.850-5.900 EPS and its FY 2026 guidance at 23.300-23.500 EPS. As a group, research analysts forecast 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 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 sale, the chief financial officer directly owned 41,995 shares of the company’s stock, valued at $12,382,225.75. The trade was a 3.77% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.16% of the stock is owned by corporate insiders.

Institutional Trading of Adobe

Hedge funds and other institutional investors have recently made changes to their positions in the company. BankPlus Wealth Management LLC purchased a new stake in shares of Adobe in the 4th quarter valued at about $253,000. NewEdge Wealth LLC increased its position in Adobe by 4.2% during the fourth quarter. NewEdge Wealth LLC now owns 57,660 shares of the software company’s stock worth $20,180,000 after buying an additional 2,304 shares during the period. Stiles Financial Services Inc lifted its stake in Adobe by 17.9% in the fourth quarter. Stiles Financial Services Inc now owns 8,239 shares of the software company’s stock valued at $2,884,000 after buying an additional 1,249 shares during the last quarter. Drucker Wealth 3.0 LLC boosted its holdings in shares of Adobe by 7.2% in the fourth quarter. Drucker Wealth 3.0 LLC now owns 959 shares of the software company’s stock valued at $336,000 after acquiring an additional 64 shares during the period. Finally, Crossmark Global Holdings Inc. boosted its holdings in shares of Adobe by 6.1% in the fourth quarter. Crossmark Global Holdings Inc. now owns 74,622 shares of the software company’s stock valued at $26,117,000 after acquiring an additional 4,275 shares during the period. Institutional investors and hedge funds own 81.79% of the company’s stock.

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.