Adobe (NASDAQ:ADBE) Shares Down 2.6% – Should You Sell?

Adobe Inc. (NASDAQ:ADBE) traded down 2.6% during trading on Thursday . The stock traded as low as $284.60 and last traded at $291.65. 7,390,975 shares traded hands during mid-day trading, an increase of 48% from the average session volume of 4,985,312 shares. The stock had previously closed at $299.58.

Key Headlines Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Airtel partnership expands Adobe Express distribution to hundreds of millions of users, a large user?growth and awareness catalyst that could help adoption and monetization in key markets. ‘Airtel, in Global First, Offers 360 Million Users Free Adobe Express Premium Access’
• Neutral Sentiment: Reported short?interest data show effectively zero days to cover (odd/flat readings), indicating no clear short?squeeze risk from current filings — the data don’t appear to be driving the move. (internal short?interest entry)
• Neutral Sentiment: Apple’s new Creator Studio prompts discussion about competitive dynamics for creators; analysts see it as a different product rather than an immediate Adobe “killer,” but it raises long?term competitive watchpoints. Apple’s Creator Studio Isn’t an Adobe Killer
• Negative Sentiment: Major brokerages (Goldman, BMO, Jefferies) issued downgrades on ADBE, which has directly pressured the stock as investors mark down near?term expectations and valuation multiples. Goldman, BMO, and Jefferies Downgrade Adobe (ADBE)
• Negative Sentiment: Adobe disclosed insider selling: the CFO sold about $485k of stock. While single insider sales can be routine, the move adds to negative sentiment when combined with analyst downgrades. Adobe (NASDAQ:ADBE) CFO Sells $485,323.10 in Stock
• Negative Sentiment: Adobe’s acquisition of Semrush at a reported ~78% premium drew attention for being an expensive bolt?on, raising questions about deal discipline and near?term EPS/ROI impact. That concern is amplifying sell?side caution. Adobe Acquired Semrush Holdings (SEMR) at a 78% premium

Analyst Upgrades and Downgrades

ADBE has been the topic of a number of research reports. Citigroup boosted their price objective on Adobe from $366.00 to $387.00 and gave the company a “neutral” rating in a research report on Wednesday, December 17th. UBS Group reduced their price target on shares of Adobe from $375.00 to $340.00 and set a “neutral” rating on the stock in a research report on Monday. Weiss Ratings restated a “hold (c-)” rating on shares of Adobe in a report on Monday, December 29th. Stifel Nicolaus reduced their target price on shares of Adobe from $480.00 to $450.00 and set a “buy” rating on the stock in a research report on Tuesday, December 9th. Finally, Barclays reaffirmed an “overweight” rating and set a $415.00 price target on shares of Adobe in a research note on Friday, December 5th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, eleven have given a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $397.19.

Adobe Stock Up 0.5%

The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.00 and a current ratio of 1.00. The firm has a market capitalization of $120.38 billion, a P/E ratio of 17.55, a PEG ratio of 1.15 and a beta of 1.53. The firm’s 50-day moving average is $328.75 and its 200 day moving average is $341.95.

Adobe (NASDAQ:ADBE) last announced its earnings results 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 business had revenue of $6.19 billion for the quarter, compared to analyst estimates of $6.11 billion. Adobe had a return on equity of 61.28% and a net margin of 30.00%.Adobe’s revenue for the quarter was up 10.5% compared to the same quarter last year. During the same quarter last year, the firm 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, equities research analysts predict that Adobe Inc. will post 16.65 EPS for the current fiscal year.

Insider Activity at Adobe

In other news, CFO Daniel Durn sold 1,646 shares of the stock in a transaction dated Tuesday, January 27th. The shares were sold at an average price of $294.85, for a total transaction of $485,323.10. Following the completion of the transaction, the chief financial officer directly owned 41,995 shares in the company, valued at $12,382,225.75. This represents a 3.77% 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 currently owned by corporate insiders.

Institutional Investors Weigh In On Adobe

Large investors have recently made changes to their positions in the stock. Measured Wealth Private Client Group LLC bought a new stake in shares of Adobe in the 3rd quarter valued at about $26,000. KERR FINANCIAL PLANNING Corp bought a new position in shares of Adobe during the third quarter worth approximately $27,000. LSV Asset Management lifted its holdings in shares of Adobe by 350.0% during 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 in the last quarter. Caitlin John LLC acquired a new stake in Adobe in the 3rd quarter worth about $28,000. Finally, Beacon Financial Strategies CORP acquired a new stake in shares of Adobe in the fourth quarter valued at approximately $28,000. Institutional investors and hedge funds own 81.79% of the company’s stock.

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.