Sumitomo Mitsui Trust Group Inc. Decreases Stake in Adobe Inc. $ADBE

Sumitomo Mitsui Trust Group Inc. lessened its holdings in shares of Adobe Inc. (NASDAQ:ADBE) by 6.2% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 1,069,885 shares of the software company’s stock after selling 70,377 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned about 0.26% of Adobe worth $260,068,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Measured Wealth Private Client Group LLC bought a new stake in Adobe during the 3rd quarter valued at $26,000. Western Pacific Wealth Management LP bought a new stake in shares of Adobe during the fourth quarter valued at about $26,000. Beacon Financial Strategies CORP bought a new position in shares of Adobe in the fourth quarter valued at approximately $28,000. TrustBank purchased a new position in Adobe during the fourth quarter valued at approximately $28,000. Finally, KERR FINANCIAL PLANNING Corp bought a new stake in Adobe during the 3rd quarter worth approximately $27,000. Institutional investors own 81.79% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on ADBE. TD Cowen reduced their price target on shares of Adobe from $310.00 to $285.00 and set a “hold” rating for the company in a research report on Monday, June 8th. Weiss Ratings restated a “sell (d+)” rating on shares of Adobe in a research note on Wednesday, June 3rd. DA Davidson dropped their price target on Adobe from $300.00 to $250.00 and set a “buy” rating for the company in a research report on Friday, June 12th. Freedom Capital cut shares of Adobe from a “strong-buy” rating to a “hold” rating in a research report on Friday, June 12th. Finally, Mizuho dropped their target price on shares of Adobe from $270.00 to $245.00 and set a “neutral” rating for the company in a research report on Friday, June 12th. Six analysts have rated the stock with a Buy rating, twenty-two have assigned a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat.com, Adobe presently has a consensus rating of “Hold” and an average price target of $275.00.

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: HSBC upgraded Adobe to Buy from Hold and raised its price target to $308, which helped reinforce a bullish view that the company’s AI strategy can support longer-term growth. Is Adobe Inc. (ADBE) the Best Beaten Down Technology Stock to Buy Now?
• Positive Sentiment: Adobe announced a definitive agreement to acquire Topaz Labs, an AI company focused on image and video enhancement, which could strengthen Adobe’s creative software and AI capabilities. Adobe (ADBE) to Acquire Topaz Labs
• Positive Sentiment: Adobe also expanded its GenStudio commerce media offering by integrating LiveRamp purchase data, a move that may improve targeting and workflow automation for advertisers and retailers. Adobe (ADBE) Brings LiveRamp Purchase Data Into GenStudio For Commerce Media
• Neutral Sentiment: Some analysts and commentary say Adobe looks cheap after its selloff, but debate remains over whether the valuation is a true opportunity or a value trap. Adobe’s stock is temptingly cheap. Should investors bite?
• Negative Sentiment: Bank of America reinstated Adobe with an Underperform rating and a $190 price target, arguing that generative AI is increasing competitive pressure on Adobe’s core creative software business. Adobe reinstated at Underperform by Bank of America as AI pressures growth outlook
• Negative Sentiment: Phillip Securities also downgraded Adobe to Neutral, reflecting ongoing concern that AI competition could weigh on future growth. Phillip Securities Downgrades Adobe (ADBE) to Neutral, Here’s What You Should Know

Adobe Price Performance

Shares of NASDAQ:ADBE opened at $220.94 on Thursday. The company’s fifty day moving average is $231.65 and its 200 day moving average is $261.73. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 0.42. Adobe Inc. has a 52 week low of $190.12 and a 52 week high of $384.75. The stock has a market cap of $87.82 billion, a PE ratio of 12.64, a PEG ratio of 0.72 and a beta of 1.43.

Adobe (NASDAQ:ADBE) last released its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, topping the consensus estimate of $5.82 by $0.14. Adobe had a return on equity of 65.11% and a net margin of 28.69%.The firm had revenue of $6.62 billion for the quarter, compared to the consensus estimate of $6.45 billion. During the same quarter in the previous year, the business earned $5.06 earnings per share. The company’s quarterly revenue was up 12.7% on a year-over-year basis. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. Research analysts anticipate that Adobe Inc. will post 19.8 earnings per share for the current year.

Adobe declared that its Board of Directors has approved a stock repurchase plan on Tuesday, April 21st that permits the company to buyback $25.00 billion in shares. This buyback authorization permits the software company to purchase up to 24.9% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In related news, Director David A. Ricks acquired 10,000 shares of the stock in a transaction on Thursday, June 25th. The stock was purchased at an average price of $194.51 per share, for a total transaction of $1,945,100.00. Following the completion of the transaction, the director owned 17,655 shares of the company’s stock, valued at $3,434,074.05. This trade represents a 130.63% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Daniel Durn sold 1,336 shares of the stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $248.02, for a total value of $331,354.72. Following the sale, the chief financial officer directly owned 42,833 shares of the company’s stock, valued at approximately $10,623,440.66. This trade represents a 3.02% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 77,091 shares of company stock valued at $18,782,773 over the last quarter. Company insiders own 0.20% of the company’s stock.

Adobe 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.