Adobe (NASDAQ:ADBE) Trading 1.9% Higher – Still a Buy?

Adobe Inc. (NASDAQ:ADBE)’s share price rose 1.9% during mid-day trading on Wednesday . The stock traded as high as $357.80 and last traded at $354.66. Approximately 4,208,148 shares changed hands during trading, an increase of 6% from the average daily volume of 3,981,709 shares. The stock had previously closed at $347.89.

Wall Street Analyst Weigh In

ADBE has been the topic of a number of research analyst reports. TD Cowen cut their target price on shares of Adobe from $420.00 to $400.00 and set a “hold” rating on the stock in a research report on Thursday, December 11th. DA Davidson reaffirmed a “buy” rating and issued a $500.00 target price on shares of Adobe in a report on Thursday, December 11th. Weiss Ratings restated a “hold (c)” rating on shares of Adobe in a report on Thursday, December 11th. Redburn Partners set a $280.00 price objective on Adobe in a research note on Monday, September 1st. Finally, Citigroup lifted their target price on shares of Adobe from $366.00 to $387.00 and gave the stock a “neutral” rating in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, eleven have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and an average price target of $417.93.

Adobe Stock Performance

The company has a market capitalization of $148.46 billion, a price-to-earnings ratio of 21.22, a P/E/G ratio of 1.38 and a beta of 1.54. The company has a 50 day moving average price of $336.08 and a 200 day moving average price of $356.19. 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 earnings results on Wednesday, December 10th. The software company reported $5.50 EPS for the quarter, topping the consensus estimate of $5.40 by $0.10. The company had revenue of $6.19 billion during 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 firm’s revenue for the quarter was up 10.5% on a year-over-year basis. During the same period in the previous year, the firm posted $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. Equities research analysts predict that Adobe Inc. will post 16.65 earnings per share for the current fiscal year.

Insider Transactions at Adobe

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

Institutional Trading of Adobe

Several institutional investors and hedge funds have recently made changes to their positions in the company. Strategic Investment Advisors MI raised its stake in shares of Adobe by 6.4% during the 3rd quarter. Strategic Investment Advisors MI now owns 1,669 shares of the software company’s stock worth $589,000 after purchasing an additional 101 shares during the period. Bourne Lent Asset Management Inc. raised its position in Adobe by 2.1% in the third quarter. Bourne Lent Asset Management Inc. now owns 57,346 shares of the software company’s stock worth $20,229,000 after acquiring an additional 1,200 shares during the period. Mirabella Financial Services LLP boosted its stake in Adobe by 102.1% in the third quarter. Mirabella Financial Services LLP now owns 7,594 shares of the software company’s stock valued at $2,675,000 after acquiring an additional 3,836 shares during the last quarter. Hudson Bay Capital Management LP grew its position in shares of Adobe by 195.0% during the 3rd quarter. Hudson Bay Capital Management LP now owns 1,181 shares of the software company’s stock valued at $417,000 after acquiring an additional 2,424 shares during the period. Finally, Painted Porch Advisors LLC increased its stake in shares of Adobe by 22.8% during the 3rd quarter. Painted Porch Advisors LLC now owns 2,873 shares of the software company’s stock worth $1,013,000 after purchasing an additional 534 shares during the last quarter. Hedge funds and other institutional investors own 81.79% of the company’s stock.

Adobe Company Profile

Adobe Inc, together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform.