The Goldman Sachs Group Upgrades Adobe (NASDAQ:ADBE) to “Strong Sell”

Adobe (NASDAQ:ADBE) was upgraded by equities research analysts at The Goldman Sachs Group to a “strong sell” rating in a research report issued on Monday,Zacks.com reports.

Several other equities analysts have also commented on ADBE. Morgan Stanley dropped their price target on shares of Adobe from $450.00 to $425.00 and set an “equal weight” rating for the company in a research report on Thursday, December 11th. DA Davidson restated a “buy” rating and set a $500.00 price objective on shares of Adobe in a report on Thursday, December 11th. UBS Group set a $487.00 target price on Adobe in a research report on Sunday, December 14th. Wall Street Zen upgraded Adobe from a “hold” rating to a “buy” rating in a report on Monday, December 22nd. Finally, BMO Capital Markets lowered Adobe from an “outperform” rating to a “market perform” rating and dropped their price target for the stock from $400.00 to $375.00 in a research note on Friday. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, twelve have given a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $406.44.

Adobe Trading Down 1.9%

Shares of ADBE opened at $327.65 on Monday. Adobe has a fifty-two week low of $311.58 and a fifty-two week high of $465.70. The company has a market capitalization of $137.15 billion, a PE ratio of 19.61, a price-to-earnings-growth ratio of 1.31 and a beta of 1.53. The stock has a fifty day moving average of $336.96 and a two-hundred day moving average of $349.26. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.02 and a current ratio of 1.00.

Adobe (NASDAQ:ADBE) last posted its quarterly earnings results on Wednesday, December 10th. The software company reported $5.50 EPS for the quarter, beating the consensus estimate of $5.40 by $0.10. The company had revenue of $6.19 billion during 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 firm’s revenue was up 10.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $4.81 EPS. 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, analysts forecast that Adobe will post 16.65 EPS for the current year.

Insider Activity at Adobe

In related news, CAO Jillian Forusz sold 149 shares of the business’s stock in a transaction that occurred 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 transaction, the chief accounting officer directly owned 3,426 shares of the company’s stock, valued at approximately $1,157,576.88. The trade was a 4.17% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders own 0.16% of the company’s stock.

Institutional Trading of Adobe

A number of hedge funds have recently made changes to their positions 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 purchased a new position in Adobe in the 3rd quarter valued at about $27,000. LSV Asset Management boosted its position in Adobe by 350.0% in the 2nd quarter. LSV Asset Management now owns 72 shares of the software company’s stock valued at $28,000 after buying an additional 56 shares during the last quarter. Caitlin John LLC acquired a new stake in shares of Adobe during the third quarter valued at about $28,000. Finally, Beacon Financial Strategies CORP purchased a new stake in shares of Adobe during the fourth quarter worth about $28,000. Hedge funds and other institutional investors own 81.79% of the company’s stock.

Trending Headlines about Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Bull case: Several articles argue Adobe remains an attractive long‑term opportunity given its cash flows, recurring SaaS revenue and exposure to design/creative workflows, which investors interpret as valuation upside versus peers. What Makes Adobe (ADBE) an Attractive Opportunity?
• Positive Sentiment: Retail/idea coverage: The Motley Fool included Adobe in a list of “cheap” stocks that could outperform, reinforcing a narrative that the stock may be undervalued after last year’s weakness. 3 Absurdly Cheap Stocks That Could Double in 2026
• Neutral Sentiment: Short‑interest report appears to contain data errors (reports show a jump yet list 0 shares and NaN), so there’s no clear evidence of a material short squeeze or buildup to explain the move — treat the dataset cautiously.
• Negative Sentiment: Jefferies downgraded ADBE from Buy to Hold and cut its price target from $500 to $400 as part of a broader software‑sector review, citing rising competitive pressure — a direct negative catalyst for the stock. Jefferies Cautious on Adobe (ADBE)
• Negative Sentiment: BMO downgraded Adobe to Market Perform, citing increasing competition and a lack of near‑term positive catalysts — another analyst move that pressures sentiment and can trigger selling. BMO downgrades Adobe to Market Perform
• Negative Sentiment: Analysts note Adobe’s AI tools are popular but warn competition is intensifying in generative AI and creative software — this raises execution and margin risk as rivals and new entrants chase the same market. Analysts Say Adobe’s (ADBE) AI Tools Are Popular, but Competition Is Intensifying
• Negative Sentiment: Market reaction summary pieces note shares were down intraday (about 1.5% in one report), reflecting the combined weight of downgrades and competition concerns — short‑term pressure is likely sentiment‑driven rather than fundamental‑earnings surprises. Adobe (NASDAQ:ADBE) Stock Price Down 1.5% – Should You Sell?

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.