Adobe (NASDAQ:ADBE) Stock Rating Cut to Sell at Citigroup

Adobe (NASDAQ:ADBE) was downgraded by analysts at Citigroup from a “neutral” rating to a “sell” rating in a research note issued on Wednesday, Marketbeat.com reports. They presently have a $207.00 target price on the software company’s stock. Citigroup‘s price target indicates a potential downside of 15.90% from the stock’s current price.

Several other research firms have also weighed in on ADBE. DA Davidson boosted their target price on shares of Adobe from $250.00 to $290.00 and gave the company a “buy” rating in a research note on Monday, September 14th. Royal Bank Of Canada restated an “outperform” rating and issued a $315.00 price target on shares of Adobe in a research report on Friday, September 11th. Oppenheimer restated a “market perform” rating on shares of Adobe in a research report on Tuesday, September 8th. UBS Group lifted their price target on Adobe from $225.00 to $255.00 and gave the company a “neutral” rating in a report on Friday, September 11th. Finally, TD Cowen reiterated a “hold” rating and set a $245.00 price target on shares of Adobe in a research report on Wednesday, September 9th. Nine analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and eight have given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $282.52.

Adobe Stock Down 2.1%

Shares of Adobe stock opened at $246.14 on Wednesday. The business has a 50-day moving average price of $253.29 and a 200 day moving average price of $250.40. Adobe has a fifty-two week low of $190.12 and a fifty-two week high of $362.71. The firm has a market cap of $95.80 billion, a P/E ratio of 13.74, a P/E/G ratio of 0.88 and a beta of 1.37. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 0.41.

Adobe (NASDAQ:ADBE) last released its earnings results on Thursday, September 10th. The software company reported $6.13 EPS for the quarter, topping analysts’ consensus estimates of $6.08 by $0.05. Adobe had a return on equity of 65.65% and a net margin of 28.05%. The company had revenue of $6.76 billion for the quarter, compared to the consensus estimate of $6.69 billion. During the same quarter last year, the business posted $5.31 EPS. Adobe’s quarterly revenue was up 12.9% compared to the same quarter last year. Adobe has set its Q4 2026 guidance at 6.300-6.350 EPS and its FY 2026 guidance at 24.450-24.500 EPS. On average, sell-side analysts forecast that Adobe will post 20.01 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Adobe news, CEO Shantanu Narayen sold 50,500 shares of the stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $249.57, for a total transaction of $12,603,285.00. Following the completion of the transaction, the chief executive officer directly owned 238,724 shares of the company’s stock, valued at approximately $59,578,348.68. This trade represents a 17.46% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.20% of the stock is owned by company insiders.

Institutional Trading of Adobe

Several institutional investors have recently modified their holdings of ADBE. Cyndeo Wealth Partners LLC boosted its position in shares of Adobe by 2.8% during the 3rd quarter. Cyndeo Wealth Partners LLC now owns 1,559 shares of the software company’s stock valued at $374,000 after acquiring an additional 43 shares in the last quarter. Meridian Management Co. lifted its stake in Adobe by 0.3% during the first quarter. Meridian Management Co. now owns 15,241 shares of the software company’s stock worth $3,705,000 after purchasing an additional 44 shares during the period. Brown Shipley& Co Ltd lifted its stake in Adobe by 28.8% during the first quarter. Brown Shipley& Co Ltd now owns 197 shares of the software company’s stock worth $48,000 after purchasing an additional 44 shares during the period. Pzena Investment Management LLC boosted its holdings in Adobe by 4.0% during the third quarter. Pzena Investment Management LLC now owns 1,138 shares of the software company’s stock valued at $273,000 after purchasing an additional 44 shares in the last quarter. Finally, United Bank boosted its holdings in Adobe by 1.4% during the first quarter. United Bank now owns 3,658 shares of the software company’s stock valued at $889,000 after purchasing an additional 49 shares in the last quarter. 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: Adobe is bringing licensed music from Universal Music Group and Warner Music Group to Premiere mobile. The added music catalog could make the video-editing app more useful and attractive to creators, though the reports did not describe a financial contribution. Forbes article on Adobe’s music deals
• Neutral Sentiment: Analyst views remain split: some see potential in Adobe’s freemium offerings and AI, while others are wary of softer annual recurring revenue (ARR) trends and competition. A compiled fair-value estimate was trimmed from $275.06 to $268.30, suggesting somewhat less estimated upside. Analyst views on Adobe fair value
• Negative Sentiment: Investors may be concerned that AI could challenge Adobe’s competitive edge, as new AI tools and software alternatives raise questions about the durability of its business and pricing power. This concern adds to pressure from competition and softer ARR trends. Article on AI and Adobe’s competitive edge

About Adobe

Adobe Inc is a global software company that develops digital tools for creative professionals, businesses, marketers, and individual users. Its products help customers create, edit, publish, manage, and measure digital content across websites, mobile applications, documents, and other media.

The company’s Creative Cloud portfolio includes applications such as Photoshop, Illustrator, InDesign, Premiere Pro, and Acrobat. Adobe also offers Document Cloud, which provides tools for creating, editing, sharing, signing, and managing digital documents, and Experience Cloud, a suite of solutions for digital marketing, analytics, commerce, customer journeys, and content management.