Piper Sandler Issues Pessimistic Forecast for Adobe (NASDAQ:ADBE) Stock Price

Adobe (NASDAQ:ADBE) had its price target decreased by equities research analysts at Piper Sandler from $280.00 to $240.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm presently has a “neutral” rating on the software company’s stock. Piper Sandler’s price target suggests a potential upside of 9.97% from the company’s previous close.

Other equities research analysts also recently issued reports about the stock. Wolfe Research downgraded shares of Adobe from an “outperform” rating to a “peer perform” rating in a report on Friday. DA Davidson set a $300.00 price target on shares of Adobe in a report on Friday, March 13th. Argus reiterated a “hold” rating on shares of Adobe in a report on Monday, March 16th. HSBC set a $302.00 target price on shares of Adobe in a research report on Friday, February 13th. Finally, Royal Bank Of Canada set a $285.00 target price on shares of Adobe in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, eighteen have issued a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $306.85.

Adobe Stock Performance

Shares of NASDAQ ADBE opened at $218.24 on Friday. The company has a market cap of $88.21 billion, a PE ratio of 12.71, a price-to-earnings-growth ratio of 0.91 and a beta of 1.42. Adobe has a 12 month low of $218.09 and a 12 month high of $416.39. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.91 and a quick ratio of 0.91. The company has a 50-day simple moving average of $245.29 and a 200-day simple moving average of $279.13.

Adobe (NASDAQ:ADBE) last issued its quarterly earnings results on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, topping analysts’ consensus estimates of $5.82 by $0.14. The business had revenue of $6.62 billion during the quarter, compared to the consensus estimate of $6.45 billion. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The company’s quarterly revenue was up 12.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $5.06 earnings per share. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. On average, equities analysts anticipate that Adobe will post 19.14 earnings per share for the current year.

Adobe announced that its board has initiated a stock buyback program on Tuesday, April 21st that authorizes the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization authorizes the software company to repurchase up to 24.9% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling

In other Adobe news, CEO Shantanu Narayen sold 75,000 shares of Adobe stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $243.54, for a total transaction of $18,265,500.00. Following the transaction, the chief executive officer directly owned 359,538 shares of the company’s stock, valued at $87,561,884.52. The trade was a 17.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CFO Daniel Durn sold 1,336 shares of Adobe stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $248.02, for a total transaction of $331,354.72. Following the transaction, the chief financial officer directly owned 42,833 shares in the company, valued at approximately $10,623,440.66. This trade represents a 3.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 77,091 shares of company stock valued at $18,782,773. Insiders own 0.20% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of ADBE. Brighton Jones LLC lifted its position in Adobe by 2.1% during the fourth quarter. Brighton Jones LLC now owns 8,068 shares of the software company’s stock valued at $3,588,000 after buying an additional 167 shares in the last quarter. Sivia Capital Partners LLC lifted its position in shares of Adobe by 25.5% during the second quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company’s stock worth $926,000 after purchasing an additional 486 shares in the last quarter. United Bank lifted its position in shares of Adobe by 12.8% during the second quarter. United Bank now owns 3,773 shares of the software company’s stock worth $1,460,000 after purchasing an additional 428 shares in the last quarter. Schnieders Capital Management LLC. lifted its position in shares of Adobe by 7.8% during the second quarter. Schnieders Capital Management LLC. now owns 2,630 shares of the software company’s stock worth $1,017,000 after purchasing an additional 190 shares in the last quarter. Finally, Gamco Investors INC. ET AL lifted its position in shares of Adobe by 190.6% during the second quarter. Gamco Investors INC. ET AL now owns 2,764 shares of the software company’s stock worth $1,069,000 after purchasing an additional 1,813 shares in the last quarter. 81.79% of the stock is owned by institutional investors and hedge funds.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe posted record second-quarter revenue of $6.62 billion and EPS of $5.96, both above expectations, while also raising full-year FY2026 revenue and earnings guidance. Management said AI tool adoption and higher subscription spending are supporting results. Adobe Reports Record Q2 Results
• Positive Sentiment: The company’s updated outlook topped Wall Street estimates for both Q3 and FY2026, suggesting Adobe still sees room for stronger revenue and profit growth even after a challenging year. Reuters: Adobe raises annual revenue forecast, CFO to exit
• Neutral Sentiment: Adobe is shifting toward a freemium AI strategy and pausing price hikes for now, aiming to boost user growth and engagement in the near term, but this could delay ARR expansion. Adobe pauses price hikes for short-term AI push
• Negative Sentiment: Shares are being weighed down by the sudden departure of CFO Dan Durn, adding to investor concerns about leadership stability as Adobe is also navigating CEO succession plans. Adobe Stock Drops As CFO Dan Durn Resigns
• Negative Sentiment: Broker reaction was cautious after earnings, with Stifel downgrading Adobe and cutting its price target, reflecting skepticism that the AI push will quickly translate into sustained growth. Stifel Downgrades Adobe Stock

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.