Adobe (NASDAQ:ADBE) Trading Down 1.8% – Should You Sell?

Adobe Inc. (NASDAQ:ADBE)’s share price fell 1.8% on Wednesday . The company traded as low as $302.47 and last traded at $304.44. 5,697,154 shares were traded during mid-day trading, an increase of 32% from the average session volume of 4,325,008 shares. The stock had previously closed at $309.93.

Key Stories Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Forbes highlights a bullish case: Adobe’s cash generation, fundamentals and valuation could make it a buying opportunity for investors focused on yield and long-term cash returns. Is It Time To Buy Adobe Stock?
• Positive Sentiment: Several pieces argue the selloff may overshoot and that Adobe could rebound — highlighting long-term franchise value and potential for share-buybacks/dividends if management chooses to return excess cash. Here’s why Adobe stock price has crashed and why it may rebound
• Neutral Sentiment: Adobe’s acquisition of Semrush is intended to accelerate its AI initiatives — a strategic positive long term, but the market remains unconvinced that the deal meaningfully shifts Adobe’s near-term monetization outlook. Cloud Stocks: For Adobe, Is The Semrush Acquisition Enough?
• Negative Sentiment: Goldman Sachs initiated coverage with a Sell rating and $290 price target — a high-profile bearish call that adds to analyst pressure and may influence institutional flows. Goldman Sachs Assumes Coverage of Adobe (ADBE) With Sell Rating, $290 PT
• Negative Sentiment: Put buying surged today (≈86,112 puts, ~54% above average), indicating elevated bearish speculative or hedging activity that can amplify downward moves.
• Negative Sentiment: Competitive pressure intensifies: coverage and reporting note Apple’s lower‑cost creative subscription and faster-growing AI competitors (Canva, Figma, OpenAI) as threats to Adobe’s pricing and growth. Adobe Stock Falls as Apple Unveils Discounted Creative Software Subscription
• Negative Sentiment: Technical and sentiment signals are weak: multiple downgrades (Oppenheimer, BMO) and chart analysis point to a break of key support and a 52‑week low, which can trigger momentum selling and widen the pool of reluctant buyers. Adobe Shares Slide After Oppenheimer Downgrade Adobe stock hits 52-week low

Analysts Set New Price Targets

A number of research analysts have recently commented on the stock. Mizuho cut their price objective on shares of Adobe from $410.00 to $390.00 and set an “outperform” rating for the company in a research report on Thursday, November 20th. The Goldman Sachs Group began coverage on Adobe in a research note on Monday. They set a “sell” rating and a $290.00 price target on the stock. Morgan Stanley cut their price target on Adobe from $450.00 to $425.00 and set an “equal weight” rating for the company in a report on Thursday, December 11th. Weiss Ratings reissued a “hold (c-)” rating on shares of Adobe in a report on Monday, December 29th. Finally, Barclays restated an “overweight” rating and issued a $415.00 target price on shares of Adobe in a research note on Friday, December 5th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, thirteen have issued a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat, Adobe presently has a consensus rating of “Hold” and a consensus target price of $403.67.

Adobe Price Performance

The company has a 50-day moving average of $336.45 and a 200 day moving average of $348.73. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.02 and a current ratio of 1.00. The firm has a market cap of $127.44 billion, a P/E ratio of 18.22, a P/E/G ratio of 1.29 and a beta of 1.53.

Adobe (NASDAQ:ADBE) last announced its quarterly earnings results on Wednesday, December 10th. The software company reported $5.50 earnings per share for the quarter, beating analysts’ consensus estimates of $5.40 by $0.10. The firm had revenue of $6.19 billion for 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 business’s revenue was up 10.5% compared to the same quarter last year. During the same period in the prior year, the business posted $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. On average, sell-side analysts anticipate that Adobe Inc. will post 16.65 EPS for the current year.

Insider Activity

In related news, CAO Jillian Forusz sold 149 shares of Adobe stock in a transaction dated Friday, October 31st. The shares were sold at an average price of $337.88, for a total transaction of $50,344.12. Following the completion of the transaction, the chief accounting officer directly owned 3,426 shares of the company’s stock, valued at $1,157,576.88. This trade represents a 4.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.16% of the stock is owned by company insiders.

Institutional Trading of Adobe

Large investors have recently added to or reduced their stakes in the company. Measured Wealth Private Client Group LLC acquired a new stake in Adobe during the 3rd quarter valued at $26,000. KERR FINANCIAL PLANNING Corp bought a new stake in shares of Adobe during the third quarter worth $27,000. LSV Asset Management grew its holdings in shares of Adobe by 350.0% during the second quarter. LSV Asset Management now owns 72 shares of the software company’s stock worth $28,000 after purchasing an additional 56 shares during the last quarter. Caitlin John LLC acquired a new stake in shares of Adobe in the third quarter valued at $28,000. Finally, Beacon Financial Strategies CORP bought a new position in shares of Adobe in the fourth quarter valued at about $28,000. 81.79% of the stock is owned by institutional investors.

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.