Primecap Management Co. CA Trims Stake in Adobe Inc. $ADBE

Primecap Management Co. CA lessened its holdings in shares of Adobe Inc. (NASDAQ:ADBE) by 23.3% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 4,157,536 shares of the software company’s stock after selling 1,264,055 shares during the quarter. Adobe makes up 1.3% of Primecap Management Co. CA’s portfolio, making the stock its 21st largest holding. Primecap Management Co. CA’s holdings in Adobe were worth $1,608,468,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently modified their holdings of ADBE. 1248 Management LLC purchased a new position in Adobe during the first quarter valued at $25,000. LSV Asset Management raised its stake in shares of Adobe by 350.0% in the second quarter. LSV Asset Management now owns 72 shares of the software company’s stock worth $28,000 after buying an additional 56 shares during the period. Flaharty Asset Management LLC purchased a new position in shares of Adobe during the 1st quarter valued at about $29,000. HHM Wealth Advisors LLC bought a new position in shares of Adobe during the 1st quarter valued at approximately $30,000. Finally, Nexus Investment Management ULC bought a new stake in Adobe during the 2nd quarter worth approximately $31,000. 81.79% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Adobe

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

Adobe Price Performance

NASDAQ:ADBE opened at $324.47 on Wednesday. The business’s 50-day moving average is $345.35 and its 200 day moving average is $366.32. Adobe Inc. has a 12 month low of $320.80 and a 12 month high of $557.90. The company has a market capitalization of $135.82 billion, a P/E ratio of 20.22, a P/E/G ratio of 1.51 and a beta of 1.48. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 0.53.

Adobe (NASDAQ:ADBE) last released its quarterly earnings data on Thursday, September 11th. The software company reported $5.31 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $5.18 by $0.13. The business had revenue of $5.99 billion for the quarter, compared to the consensus estimate of $5.91 billion. Adobe had a return on equity of 57.54% and a net margin of 30.01%.The company’s revenue was up 10.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $4.65 EPS. Adobe has set its FY 2025 guidance at 20.800-20.850 EPS. Q4 2025 guidance at 5.350-5.400 EPS. On average, equities research analysts forecast that Adobe Inc. will post 16.65 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on ADBE shares. DA Davidson reiterated a “buy” rating and issued a $500.00 price target on shares of Adobe in a research report on Friday, September 12th. Piper Sandler cut their price target on Adobe from $500.00 to $470.00 and set an “overweight” rating for the company in a research note on Friday, September 12th. Wall Street Zen cut Adobe from a “buy” rating to a “hold” rating in a report on Saturday, November 8th. Citigroup cut their target price on Adobe from $450.00 to $400.00 and set a “neutral” rating for the company in a research report on Thursday, September 11th. Finally, Royal Bank Of Canada decreased their target price on Adobe from $480.00 to $430.00 and set an “outperform” rating on the stock in a research note on Monday, September 8th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, twelve have given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $433.41.

Adobe Profile

Adobe Inc, together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform.