California State Teachers Retirement System 13F: Cuts ADBE Stake by $3M
The California State Teachers Retirement System trimmed its position in Adobe Inc. by 14,954 shares, reflecting a 2.3% decrease.
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California State Teachers Retirement System sold 14,954 shares from its stake in Adobe Inc. ($ADBE), a 2.32% decrease, according to a 13F filing with the SEC dated May 18, 2026. It reported 629,123 shares worth $127.07 million at the end of the quarter.
Since the filing, $ADBE is down 5.9% after 1 week, down 23.2% after 1 month and down 4.1% to date (from the $255.64 close on May 18, 2026).
Find the original: California State Teachers Retirement System 13F filings on SEC EDGAR
ADBE
Adobe Inc.
Key Points
- California State Teachers Retirement System trimmed its Adobe Inc. (ADBE) position by 14,954 shares, reducing its total holdings to 629,123 shares valued at approximately $127.1 million as of May 18, 2026.
- Adobe's stock closed at $201.98 on the day of the filing, down from a previous close of $240.68, showing a significant decline in its market performance.
- The latest analyst ratings show a hold recommendation with a target mean price of $272.31, indicating mixed opinions on the stock's future performance.
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Overview of the Trimmed Position
The California State Teachers Retirement System trimmed its stake in Adobe Inc. (ADBE) by 14,954 shares, reducing its total holdings to 629,123 shares. This change represents a 2.3% decrease, with the position valued at approximately $127.1 million as of the latest filing on May 18, 2026.
What Changed in the Position
The California State Teachers Retirement System's holdings in Adobe decreased from 644,077 shares to 629,123 shares, reflecting a reduction of 14,954 shares. This adjustment shows the fund's decision to scale back its investment in the software company, which it previously held at a cost basis of $97.59 per share.
Institutional Activity in Adobe
In the same quarter, other institutional investors have also made moves with Adobe. Notably, D. E. Shaw reduced its stake by over a million shares, while Lsv Asset Management increased its holdings by 9.4%, reaching nearly 1 million shares. This trend suggests a mix of confidence and caution among large investors in Adobe's stock.
Stock Performance and Market Context
Adobe's stock closed at $201.98 on the day of the filing, significantly lower than its previous close of $240.68. This drop indicates a challenging market environment for the company, as it trades well below its 50-day moving average of $256.84 and its 52-week high of $363.70.
Recent Earnings
For the fiscal year, Adobe reported revenue of approximately $25.97 billion, reflecting a growth rate of 12.9%. The company's net margin stands at 28.05%, and it has an impressive return on equity (ROE) of 61.90%. The next earnings report is scheduled for December 9, 2026, which will provide further insights into its financial performance.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
17 target cuts vs 0 raises.
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EPS & revenue
EPS met estimates. Revenue beat estimates by 0.5%.
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Profit surprise
EBITDA missed by 26 percent. Operating income missed by 24 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
2 downgrades, 17 target cuts.
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Earnings quality
Operating margin down 2.1 points. Positive free cash flow.
Earnings Call Summary
Adobe reported $6.62 billion in revenue, beating consensus by $33 million, but missed earnings at $5.96 non-GAAP EPS versus expected $5.83. The company is pivoting to a freemium strategy, growing Creative Cloud freemium users from 50 million to 90 million and Acrobat users from 700 million to 850 million. Firefly AI revenue approached $300 million and grew 50 percent quarter over quarter. Management stressed that capturing traffic and user engagement now is more important than short-term profit, similar to how Acrobat Reader became a long-term moat.
Guidance Adobe expects $20.5 billion to $20.6 billion in revenue for the full year, raising its prior target. For next quarter, the company guides to $6.67 billion to $6.72 billion in revenue. The company is investing heavily in freemium products and deferring Creative Cloud price increases to capture new users and build long-term growth.
Severe negative reset. The report materially damaged the forward outlook and likely forces major downward revisions.
Insider Buying and Selling at Adobe Inc.
On June 15, 2026, several insiders at Adobe made notable transactions. Interim CFO Steven Day bought 546 shares, while Chief Legal Officer Adele Pentland purchased 7,800 shares. However, Pentland also sold 7,800 shares on the same day, which adds a layer of complexity to the insider trading picture. Additionally, SVP & CAO Jillian Forusz sold 461 shares, indicating varied investment strategies among the company's leadership.
Analysts Set New Price Targets
Analysts have recently downgraded their ratings for Adobe. On October 13, 2026, HSBC downgraded the stock to a hold rating with a target price of $267, down from a previous target of $310. Similarly, Wells Fargo downgraded its rating to underweight with a target of $225, down from $270. Despite these downgrades, DA Davidson maintained a buy rating with a target of $290, showing some continued optimism.
Conclusion
As Adobe prepares for its next earnings report on December 9, 2026, investors will be watching closely for any further developments in its financial health. The recent adjustments by both institutional investors and insiders highlight the mixed sentiments surrounding the company's stock. Remember, this 13F filing reflects past holdings and may not indicate current positions.
Related Filing Alerts
Source: California State Teachers Retirement System's 13F filing on $ADBE (May 18, 2026). 13F filings show holdings as of the end of the reporting quarter and may not reflect the fund's current position. Find the original filing: California State Teachers Retirement System 13F filings on SEC EDGAR. Written by software, not financial advice. How we make alerts