Adobe (NASDAQ:ADBE) Stock Price Down 5.4% – Time to Sell?

Adobe Inc. (NASDAQ:ADBE)’s stock price traded down 5.4% on Tuesday . The stock traded as low as $307.91 and last traded at $309.93. 7,186,080 shares changed hands during trading, an increase of 69% from the average session volume of 4,262,237 shares. The stock had previously closed at $327.65.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Retail investors remain active and bullish in some venues despite price weakness; articles note continued retail buying that could provide short‑term support. ADBE shares slip on analyst downgrades — but why is retail bullish?
• Positive Sentiment: Some bullish commentary argues Adobe remains an attractive long‑term opportunity based on its recurring revenue, margin profile and AI product positioning, which helps explain why some investors defend the shares. What Makes Adobe (ADBE) an Attractive Opportunity?
• Neutral Sentiment: Short‑interest report in the cycle shows anomalous/zero values (likely a data issue), so current short‑interest metrics aren’t providing clear directional clues. Finviz (short interest summary)
• Negative Sentiment: BMO downgraded ADBE to Market Perform and cut its PT to $375 from $400, saying near‑term catalysts are limited and expecting range‑bound shares. Adobe (ADBE) Downgraded as Analysts See Limited Near-Term Catalysts
• Negative Sentiment: Oppenheimer cut its rating (coverage notes and press coverage) — one of several firms trimming recommendations today — which amplified selling pressure. Adobe Shares Slide After Oppenheimer Downgrade
• Negative Sentiment: Goldman initiated coverage with a Sell and a $290 price target, signaling near‑term downside versus prior levels and adding to price‑target cuts piling up. ADBE assumed with a Sell at Goldman Sachs
• Negative Sentiment: Jefferies downgraded Adobe from Buy to Hold and cut its PT as part of a broader software‑sector re‑rating, citing rising competition and a tougher outlook for multiple software names. Jefferies Cautious on Adobe (ADBE)
• Negative Sentiment: Analyst commentary and pieces (TipRanks) highlight unusually pessimistic forecasts from some strategists — the most bearish views in years — which pressured sentiment and triggered headlines. Adobe Stock Drops as The Most Pessimistic Analyst Forecast Since 2013 Hits ADBE Shares
• Negative Sentiment: Competitive pressure from Apple’s lower‑cost creative app suite is receiving media attention as a potential longer‑term threat to Adobe’s Creative Cloud pricing/premium positioning. Apple Hits Adobe With an Affordable Creative App Suite
• Negative Sentiment: Shares hit a 52‑week low in intraday trading, reflecting the cumulative effect of downgrades, price‑target cuts and competition concerns. Adobe stock hits 52-week low at $311.55

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Oppenheimer cut shares of Adobe from an “outperform” rating to a “market perform” rating in a research report on Tuesday. Wells Fargo & Company reduced their price objective on shares of Adobe from $470.00 to $420.00 and set an “overweight” rating on the stock in a research report on Thursday, November 20th. Wolfe Research dropped their target price on Adobe from $450.00 to $440.00 and set an “outperform” rating for the company in a research report on Thursday, December 11th. Mizuho cut their target price on Adobe from $410.00 to $390.00 and set an “outperform” rating on the stock in a research note on Thursday, November 20th. Finally, Royal Bank Of Canada reissued an “outperform” rating and set a $430.00 price target on shares of Adobe in a research note on Thursday, December 11th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, thirteen have given a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $406.44.

Adobe Stock Down 5.4%

The company has a current ratio of 1.00, a quick ratio of 1.02 and a debt-to-equity ratio of 0.53. The firm has a market cap of $129.74 billion, a PE ratio of 18.55, a P/E/G ratio of 1.31 and a beta of 1.53. The business’s 50-day simple moving average is $336.96 and its 200 day simple moving average is $349.26.

Adobe (NASDAQ:ADBE) last released its quarterly earnings data on Wednesday, December 10th. The software company reported $5.50 earnings per share (EPS) 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 the consensus estimate of $6.11 billion. Adobe had a net margin of 30.00% and a return on equity of 61.28%. The company’s quarterly revenue was up 10.5% on a year-over-year basis. During the same period last year, the firm 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, equities research analysts expect that Adobe Inc. will post 16.65 earnings per share for the current year.

Insider Buying and Selling at Adobe

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

Institutional Trading of Adobe

Several hedge funds have recently modified their holdings of ADBE. Riverbend Wealth Management LLC boosted its stake in Adobe by 1.8% in the third quarter. Riverbend Wealth Management LLC now owns 1,668 shares of the software company’s stock valued at $588,000 after acquiring an additional 29 shares in the last quarter. FSM Wealth Advisors LLC boosted its position in shares of Adobe by 1.1% in the 2nd quarter. FSM Wealth Advisors LLC now owns 2,644 shares of the software company’s stock worth $997,000 after purchasing an additional 30 shares in the last quarter. Intellus Advisors LLC grew its stake in Adobe by 1.6% during the 2nd quarter. Intellus Advisors LLC now owns 1,860 shares of the software company’s stock worth $720,000 after buying an additional 30 shares during the last quarter. Beacon Financial Advisory LLC increased its position in Adobe by 5.5% during the 3rd quarter. Beacon Financial Advisory LLC now owns 577 shares of the software company’s stock valued at $204,000 after buying an additional 30 shares in the last quarter. Finally, MCF Advisors LLC raised its stake in Adobe by 20.8% in the third quarter. MCF Advisors LLC now owns 174 shares of the software company’s stock valued at $61,000 after buying an additional 30 shares during the last quarter. 81.79% of the stock is owned by hedge funds and other institutional investors.

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.