Adobe (NASDAQ:ADBE) Reaches New 12-Month Low – Here’s What Happened
by Kim Johansen · The Markets DailyAdobe Inc. (NASDAQ:ADBE – Get Free Report)’s share price reached a new 52-week low during trading on Monday . The company traded as low as $246.21 and last traded at $246.7410, with a volume of 2036858 shares. The stock had previously closed at $258.61.
Key Adobe News
Here are the key news stories impacting Adobe this week:
- Positive Sentiment: Zacks highlights Adobe’s expanding AI partnerships and deeper integration of Firefly and Acrobat AI, arguing these moves could help stabilize growth and support a recovery in the stock. AI Efforts & Rich Partner Base: Adobe Stock Set for Recovery?
- Positive Sentiment: MarketBeat argues the broader tech pullback creates buying opportunities for oversold names like Adobe, which could attract value-oriented buyers if sentiment stabilizes. The Late-Stage Bull Market Is a Buying Opportunity for Tech (ADBE)
- Neutral Sentiment: Piper Sandler retains a constructive view on Adobe while cutting its rating/target (Overweight→Neutral, PT lowered to $330), signaling mixed analyst conviction rather than outright abandonment. Piper Sandler Remains Positive on Adobe Inc. (ADBE) Despite Concerns
- Neutral Sentiment: Barchart and other outlets note attractive option pricing/strategies (e.g., short iron condor) after the recent drop — relevant for traders but not a direct fundamental catalyst. 1 Picture-Perfect Short Iron Condor Trade Returning 35% on Adobe Stock Now
- Neutral Sentiment: Reports show anomalous/zero short‑interest figures this week (data appears to be glitchy), so short‑interest signals are unreliable right now. (No external link)
- Negative Sentiment: Multiple downgrades and analyst notes warn that rising competition in generative AI (from Microsoft, Alphabet and acquisitive players like Canva) threatens Adobe’s revenue durability — a primary driver of recent selling. Adobe Downgrades Spotlight AI Competition And Questions Around Growth Durability
- Negative Sentiment: Adobe hit a 52‑week low amid the selloff, reinforcing downside momentum and raising valuation concerns among investors. Adobe stock hits 52-week low at $251.00
- Negative Sentiment: Opinion pieces (Forbes/Seeking Alpha) question whether the drop signals a durable structural problem or a temporary pullback, adding to investor uncertainty and downside risk. How Low Can Adobe Stock Go?
Analyst Upgrades and Downgrades
Several research firms recently issued reports on ADBE. Stifel Nicolaus dropped their target price on Adobe from $480.00 to $450.00 and set a “buy” rating on the stock in a report on Tuesday, December 9th. Wall Street Zen lowered Adobe from a “buy” rating to a “hold” rating in a research report on Saturday, January 17th. BMO Capital Markets cut Adobe from an “outperform” rating to a “market perform” rating and dropped their price objective for the stock from $400.00 to $375.00 in a research note on Friday, January 9th. The Goldman Sachs Group began coverage on Adobe in a report on Monday, January 12th. They issued a “sell” rating and a $290.00 price objective for the company. Finally, Citigroup boosted their target price on shares of Adobe from $366.00 to $387.00 and gave the stock a “neutral” rating in a report on Wednesday, December 17th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, twelve have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $392.76.
Check Out Our Latest Research Report on Adobe
Adobe Stock Performance
The stock has a market capitalization of $105.83 billion, a P/E ratio of 15.43, a PEG ratio of 0.97 and a beta of 1.51. The stock’s 50-day simple moving average is $305.38 and its 200 day simple moving average is $330.43. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.00 and a quick ratio of 1.00.
Adobe (NASDAQ:ADBE – Get Free Report) last issued its quarterly earnings data on Wednesday, December 10th. The software company reported $5.50 earnings per share for the quarter, beating the consensus estimate of $5.40 by $0.10. The company had revenue of $6.19 billion for the quarter, compared to analyst estimates of $6.11 billion. Adobe had a net margin of 30.00% and a return on equity of 61.28%. The company’s revenue was up 10.5% on a year-over-year basis. During the same period in the prior year, the firm earned $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. Research analysts expect that Adobe Inc. will post 16.65 EPS for the current fiscal year.
Insider Activity
In related news, CFO Daniel Durn sold 1,646 shares of the company’s stock in a transaction dated Tuesday, January 27th. The shares were sold at an average price of $294.85, for a total value of $485,323.10. Following the transaction, the chief financial officer directly owned 41,995 shares in the company, valued at approximately $12,382,225.75. This represents a 3.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.16% of the company’s stock.
Institutional Inflows and Outflows
Institutional investors and hedge funds have recently made changes to their positions in the business. LSV Asset Management grew its position in 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. Measured Wealth Private Client Group LLC bought a new stake in shares of Adobe during the 3rd quarter valued at $26,000. Western Pacific Wealth Management LP acquired a new stake in shares of Adobe during the 4th quarter worth $26,000. Caitlin John LLC bought a new position in shares of Adobe in the third quarter worth $28,000. Finally, Beacon Financial Strategies CORP acquired a new position in Adobe in the fourth quarter valued at about $28,000. Institutional investors and hedge funds own 81.79% of the company’s 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.