Adobe (NASDAQ:ADBE) Upgraded at Wall Street Zen

by · The Markets Daily

Wall Street Zen upgraded shares of Adobe (NASDAQ:ADBE – Free Report) from a hold rating to a buy rating in a research report sent to investors on Saturday,Wall Street Zen reports.

A number of other research firms have also recently issued reports on ADBE. CLSA assumed coverage on shares of Adobe in a research report on Monday, July 20th. They set an “outperform” rating and a $300.00 price objective on the stock. Piper Sandler cut their price target on Adobe from $280.00 to $240.00 and set a “neutral” rating on the stock in a report on Friday, June 12th. Stifel Nicolaus restated a “hold” rating and set a $200.00 price objective (down from $350.00) on shares of Adobe in a report on Friday, June 12th. Royal Bank Of Canada upped their target price on Adobe from $285.00 to $315.00 and gave the stock an “outperform” rating in a research report on Wednesday, September 2nd. Finally, Bank of America increased their target price on Adobe from $190.00 to $220.00 and gave the stock an “underperform” rating in a report on Wednesday, August 19th. Seven analysts have rated the stock with a Buy rating, twenty-one have issued a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $278.72.

Get Our Latest Stock Analysis on ADBE

Adobe Price Performance

Adobe stock opened at $266.51 on Friday. The stock has a market capitalization of $105.94 billion, a price-to-earnings ratio of 15.25, a PEG ratio of 0.93 and a beta of 1.42. Adobe has a 52-week low of $190.12 and a 52-week high of $370.86. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.75 and a current ratio of 0.75. The stock’s 50 day moving average price is $250.39 and its two-hundred day moving average price is $245.73.

Adobe (NASDAQ:ADBE – Get Free Report) last released its earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.82 by $0.14. The company had revenue of $6.62 billion for the quarter, compared to the consensus estimate of $6.45 billion. Adobe had a net margin of 28.69% and a return on equity of 65.11%. Adobe’s quarterly revenue was up 12.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $5.06 EPS. 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 predict that Adobe will post 19.81 earnings per share for the current year.

Insiders Place Their Bets

In other news, CAO Jillian Forusz sold 416 shares of the company’s stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $264.33, for a total value of $109,961.28. Following the completion of the sale, the chief accounting officer owned 3,824 shares in the company, valued at $1,010,797.92. This represents a 9.81% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director David Ricks bought 10,000 shares of the stock in a transaction dated Thursday, June 25th. The stock was purchased at an average price of $194.51 per share, with a total value of $1,945,100.00. Following the acquisition, the director owned 17,655 shares of the company’s stock, valued at $3,434,074.05. The trade was a 130.63% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.20% of the company’s stock.

Hedge Funds Weigh In On Adobe

Hedge funds and other institutional investors have recently modified their holdings of the business. Western Pacific Wealth Management LP purchased a new position in Adobe in the fourth quarter worth $26,000. Measured Wealth Private Client Group LLC bought a new stake in shares of Adobe during the 3rd quarter worth $26,000. TrustBank purchased a new position in shares of Adobe in the 4th quarter worth about $28,000. Mowery & Schoenfeld Wealth Management LLC purchased a new position in shares of Adobe in the 2nd quarter worth about $28,000. Finally, Lloyd Advisory Services LLC. bought a new position in Adobe during the fourth quarter valued at about $31,000. Hedge funds and other institutional investors own 81.79% of the company’s stock.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

  • Positive Sentiment: RBC Capital maintained an Outperform rating and raised its price target to $315, citing expectations for an in-line third quarter and the importance of renewed annual recurring-revenue growth. The target implies meaningful upside from recent trading levels. RBC sets $315 target article
  • Positive Sentiment: Adobe’s recent rally is being supported by strong fundamentals: second-quarter revenue reached roughly $6.6 billion, up 12.7% year over year, while AI-first ARR more than tripled to above $500 million. Investors will look for further evidence of monetization in Thursday’s results. Adobe Q3 earnings preview
  • Positive Sentiment: Bank of America reportedly views Adobe more favorably than Oracle ahead of earnings, adding a positive relative-investment case for the software company. BofA Adobe versus Oracle analysis
  • Neutral Sentiment: Adobe named Anil Chakravarthy president and CEO effective December 1, while longtime CEO Shantanu Narayen becomes executive chair. The transition could sharpen the company’s AI strategy, but investors will closely evaluate execution under the new leadership. Adobe CEO succession article
  • Negative Sentiment: Analyst sentiment remains divided ahead of earnings. Several recent calls are Holds or Sells, and concerns include Adobe’s roughly 20% year-to-date decline, an open CFO search and uncertainty over whether AI growth can offset competitive pressure. Adobe analyst earnings preview
  • Negative Sentiment: Retail investors and hedge funds appear sharply split, while reported insider activity shows six open-market sales and no purchases over the past six months. That divergence may reinforce concerns about near-term confidence in the stock. Adobe investor sentiment article

About Adobe

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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.

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