Stocks

Van Strum & Towne Inc. Increases Stake in Adobe Inc.

Published March 16, 2025

Van Strum & Towne Inc. has significantly increased its investment in Adobe Inc. (NASDAQ:ADBE) by 54.5% during the fourth quarter, based on its latest filing with the Securities and Exchange Commission. The fund now holds 2,615 shares of Adobe's stock after adding 922 shares during the quarter. As per the most recent disclosure, Van Strum & Towne Inc.'s total holdings in Adobe are valued at approximately $1,163,000.

Several other institutional investors have also made adjustments to their investments in Adobe. Legacy Investment Solutions LLC established a new position in Adobe during the third quarter with a valuation of $26,000. MidAtlantic Capital Management Inc. similarly purchased a new stake in Adobe valued at roughly $30,000 in the same quarter. Additionally, True Wealth Design LLC increased its position in Adobe by an impressive 141.7% during the third quarter, bringing its total to 58 shares, valued at $30,000 after acquiring an extra 34 shares. Briaud Financial Planning Inc. acquired a new stake in Adobe worth approximately $36,000, while Decker Retirement Planning Inc. also purchased a new stake in the company, valued at around $31,000 during the fourth quarter. Currently, institutional investors and hedge funds own approximately 81.79% of Adobe's stock.

Adobe's Stock Performance

Adobe's shares opened at $394.74 on Friday, and the stock has shown a movement of 4.5%. The 50-day moving average price stands at $437.03, while the 200-day moving average price is at $482.65. Adobe Inc. reached a 52-week low of $374.50 and a high of $587.75. The company's market capitalization is estimated at $171.87 billion, with a price-to-earnings ratio of 31.83, a price-to-earnings growth ratio of 2.15, and a beta of 1.37. Adobe maintains a quick ratio of 1.07, a current ratio of 1.07, and a debt-to-equity ratio of 0.29.

Recent Earnings Report

Adobe recently reported its earnings for the fourth quarter on March 12. The company achieved earnings per share (EPS) of $5.08, surpassing the consensus estimate of $4.97 by $0.11. The return on equity was impressive at 45.87%, with a net margin of 25.85%. Adobe generated $5.71 billion in revenue for the quarter, exceeding analysts' expectations of $5.66 billion. This marks an increase from the previous year when Adobe's EPS was $4.48. Analysts forecast an average EPS of 16.65 for the current fiscal year.

Analyst Ratings and Research

A variety of research firms have recently reviewed Adobe's stock, with varying opinions on its future performance. Citigroup reduced its price target from $551.00 to $490.00 and gave a "neutral" rating in a report released on March 10. Morgan Stanley also cut its target from $660.00 to $600.00, maintaining an "overweight" rating. Oppenheimer lowered its target from $560.00 to $530.00, issuing an "outperform" rating. Conversely, BNP Paribas upgraded Adobe from "underperform" to "neutral" with a target price of $425.00, and KeyCorp decreased its target from $450.00 to $390.00 with an "underweight" rating. The consensus among analysts includes one sell rating, eleven hold ratings, seventeen buy ratings, and one strong buy rating, leading to an average rating of "Moderate Buy" with a target price of $539.46.

Insider Transactions

In insider trading news, EVP Scott Belsky sold 922 shares on January 24 at an average price of $437.28, amounting to approximately $403,172.16. Following this transaction, he retains ownership of 22,153 shares valued at around $9,687,063.84, marking a decrease of 4.00% in his stake. Chief Accounting Officer Jillian Forusz also sold 334 shares on January 28 at an average price of $435.83, totaling $145,567.22, which represents an 11.06% reduction in her ownership. Overall, corporate insiders have sold 5,075 shares valued at $2,191,826 over the last quarter, while corporate insiders hold roughly 0.16% of Adobe's stock.

Company Overview

Adobe Inc. operates as a diversified software company globally through its subsidiaries. The company has three main segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers a range of products and services that enable the creation, publication, and promotion of content, including its Document Cloud platform.