Adobe (NASDAQ:ADBE) Stock Price Down 4.8% – What’s Next?
by Tristan Rich · The Markets DailyAdobe Inc. (NASDAQ:ADBE – Get Free Report)’s stock price fell 4.8% during mid-day trading on Friday . The company traded as low as $331.64 and last traded at $333.30. 5,620,914 shares changed hands during mid-day trading, an increase of 34% from the average session volume of 4,203,159 shares. The stock had previously closed at $349.99.
Adobe News Summary
Here are the key news stories impacting Adobe this week:
- Positive Sentiment: Zacks Research raised multiple near‑term and FY2026/2027 EPS forecasts (Q1–Q4 and full‑year upgrades), suggesting a stronger earnings trajectory that supports valuation and investor confidence. This is a clear earnings‑driven positive catalyst for ADBE. Zacks Research Forecasts Adobe’s Q4 Earnings (NASDAQ:ADBE)
- Positive Sentiment: Piper Sandler reaffirmed an Overweight/Outperform stance and a $470 target after Adobe’s fiscal 2025 results, highlighting the company’s AI leadership, strong revenue and cash flow — a fundamental endorsement that can support upside and investor allocation to the stock. Adobe (ADBE) Reaffirms AI Leadership — Piper Sandler
- Positive Sentiment: Market commentary points to “strong financial prospects” as a driver of ADBE momentum—investor focus on recurring revenue growth, margin strength and AI product optionality is supporting sentiment. Are Strong Financial Prospects Driving Adobe’s Momentum? (Yahoo)
- Neutral Sentiment: Analyst consensus and valuation context remain mixed: sell‑side consensus EPS cited in the reports (~$16.65) differs from the higher Zacks/FY2026–27 upgrades, leaving room for re‑rating if company execution matches raised estimates. Investors should watch upcoming guidance and quarterly results for confirmation.
- Negative Sentiment: Short‑term weakness vs. peers: a note that Adobe “underperformed Friday when compared to competitors” signals relative‑performance pressure and may trigger tactical selling or sector rotation even as fundamental outlooks are upgraded. Adobe Inc. stock underperforms Friday vs competitors (MSN)
Analyst Upgrades and Downgrades
A number of research firms have issued reports on ADBE. Evercore ISI decreased their price target on shares of Adobe from $475.00 to $450.00 and set an “outperform” rating for the company in a report on Friday, September 12th. BMO Capital Markets cut their price objective on Adobe from $405.00 to $400.00 and set an “outperform” rating for the company in a research report on Monday, December 15th. UBS Group set a $487.00 target price on Adobe in a research note on Sunday, December 14th. Stifel Nicolaus lowered their price objective on shares of Adobe from $480.00 to $450.00 and set a “buy” rating on the stock in a research note on Tuesday, December 9th. Finally, JMP Securities reaffirmed a “market perform” rating on shares of Adobe in a research report on Friday, September 12th. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, eleven have assigned a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $417.93.
Check Out Our Latest Research Report on ADBE
Adobe Stock Down 4.8%
The company has a current ratio of 1.00, a quick ratio of 1.02 and a debt-to-equity ratio of 0.53. The business’s fifty day moving average price is $338.29 and its 200 day moving average price is $351.45. The company has a market capitalization of $139.52 billion, a P/E ratio of 19.95, a P/E/G ratio of 1.31 and a beta of 1.53.
Adobe (NASDAQ:ADBE – Get Free Report) last posted its earnings results on Wednesday, December 10th. The software company reported $5.50 earnings per share 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 analysts’ expectations 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 quarter 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. As a group, equities research analysts predict that Adobe Inc. will post 16.65 earnings per share for the current fiscal year.
Insider Activity
In related news, CAO Jillian Forusz sold 149 shares of the firm’s stock in a transaction that occurred on Friday, October 31st. The stock was sold at an average price of $337.88, for a total transaction of $50,344.12. Following the completion of the transaction, the chief accounting officer owned 3,426 shares in the company, valued at $1,157,576.88. This trade represents a 4.17% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.16% of the company’s stock.
Institutional Inflows and Outflows
A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. First Financial Bank Trust Division bought a new stake in shares of Adobe in the 4th quarter worth about $2,591,000. RIA Advisory Group LLC bought a new position in Adobe during the 3rd quarter valued at about $2,124,000. Mirova boosted its position in Adobe by 89.4% in the third quarter. Mirova now owns 1,695 shares of the software company’s stock valued at $598,000 after buying an additional 800 shares in the last quarter. Triumph Capital Management boosted its position in Adobe by 22.5% in the third quarter. Triumph Capital Management now owns 773 shares of the software company’s stock valued at $273,000 after buying an additional 142 shares in the last quarter. Finally, Advisors Management Group Inc. ADV grew its stake in Adobe by 1.2% during the third quarter. Advisors Management Group Inc. ADV now owns 15,299 shares of the software company’s stock worth $5,397,000 after buying an additional 175 shares during the last quarter. 81.79% of the stock is owned by institutional investors.
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.