Capital World Investors Trims Position in Adobe Inc. $ADBE

Capital World Investors lessened its holdings in shares of Adobe Inc. (NASDAQ:ADBE) by 12.0% during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 2,606,421 shares of the software company’s stock after selling 356,878 shares during the quarter. Capital World Investors’ holdings in Adobe were worth $912,221,000 at the end of the most recent quarter.

A number of other large investors also recently made changes to their positions in ADBE. Norges Bank purchased a new position in shares of Adobe during the 4th quarter worth $2,275,165,000. Arrowstreet Capital Limited Partnership raised its position in shares of Adobe by 53.3% in 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 raised its position in shares of Adobe by 8,006.6% in 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 raised its position in shares of Adobe by 55.2% in 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 position in shares of Adobe by 17.9% in the 3rd quarter. Amundi now owns 4,888,283 shares of the software company’s stock worth $1,711,583,000 after buying an additional 742,646 shares during the period. Hedge funds and other institutional investors own 81.79% of the company’s stock.

Key Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Royal Bank of Canada reaffirmed its Outperform rating on Adobe and kept a $350 price target, implying meaningful upside from current levels. This suggests some analysts still see attractive valuation and earnings potential ahead. Benzinga
• Positive Sentiment: Multiple previews ahead of Adobe’s June 11 fiscal Q2 earnings report say Wall Street expects earnings growth and a potential beat, which could support the stock if results and guidance come in stronger than expected. Yahoo Finance
• Neutral Sentiment: Coverage this week highlighted that Adobe is getting closer to choosing its next CEO, with internal and external candidates under review. Leadership transition talk adds uncertainty, but it could also be viewed as a strategic reset in the AI era. Yahoo Finance
• Negative Sentiment: Investor anxiety continues to build around Adobe’s competitive moat, with one recent article arguing that AI could threaten the “Adobe era” and help explain why the stock has fallen sharply from its 2025 highs. The Motley Fool
• Negative Sentiment: Recent market commentary also noted Adobe has been falling more than the broader market, reflecting ongoing skepticism ahead of earnings and broader concerns about growth durability. Zacks

Adobe Stock Performance

NASDAQ:ADBE opened at $251.44 on Monday. The business’s 50-day moving average is $245.80 and its two-hundred day moving average is $281.56. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.91 and a quick ratio of 0.91. Adobe Inc. has a 12 month low of $224.13 and a 12 month high of $419.82. The firm has a market capitalization of $101.63 billion, a PE ratio of 14.64, a price-to-earnings-growth ratio of 0.98 and a beta of 1.42.

Adobe (NASDAQ:ADBE) last released its quarterly earnings data on Thursday, March 12th. The software company reported $6.06 EPS for the quarter, beating the consensus estimate of $5.87 by $0.19. Adobe had a return on equity of 64.48% and a net margin of 29.48%.The company had revenue of $6.40 billion for the quarter, compared to analyst estimates of $6.28 billion. During the same period last year, the company posted $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. Research analysts predict that Adobe Inc. will post 19.14 earnings per share for the current fiscal year.

Adobe announced that its Board of Directors has authorized a stock repurchase plan on Tuesday, April 21st that allows the company to buyback $25.00 billion in shares. This buyback authorization allows the software company to purchase up to 24.9% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on ADBE. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating on shares of Adobe in a research report on Friday, March 13th. JPMorgan Chase & Co. cut their target price on Adobe from $520.00 to $420.00 and set an “overweight” rating on the stock in a research report on Friday, March 13th. Morgan Stanley cut their target price on Adobe from $425.00 to $365.00 and set an “equal weight” rating on the stock in a research report on Friday, March 13th. Jefferies Financial Group cut their target price on Adobe from $400.00 to $290.00 and set a “hold” rating on the stock in a research report on Monday, February 23rd. Finally, Citigroup increased their target price on Adobe from $253.00 to $264.00 and gave the stock a “neutral” rating in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, seventeen have given a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat.com, Adobe presently has a consensus rating of “Hold” and a consensus price target of $337.62.

Insider Buying and Selling at Adobe

In other Adobe news, CFO Daniel Durn sold 1,336 shares of the firm’s stock in a transaction dated Monday, April 20th. The stock was sold at an average price of $248.02, for a total value of $331,354.72. Following the transaction, the chief financial officer directly owned 42,833 shares of the company’s stock, valued at $10,623,440.66. This trade represents a 3.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Jillian Forusz sold 755 shares of the firm’s 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 sale, the chief accounting officer owned 3,521 shares of the company’s stock, valued at $867,046.25. This represents a 17.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 77,091 shares of company stock valued at $18,782,773 over the last three months. 0.20% of the stock is owned by company insiders.

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.