u/Street-Broccoli-968 ·
Reddit — r/ValueInvesting
· April 25, 2026 at 02:25
· ⬆ 21 pts
· 💬 40 comments
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AI Summary
Summary
The post analyzes Adobe (ADBE) governance issues: CFO sold shares just before buyback announcement, CEO excessive compensation with minimal ownership, no insider buying at lows, and stalled CEO search.
Author’s thesis is bearish: management appears misaligned with shareholders, buybacks are value-destructive, and only an activist could turn things around.
Quality assessment: Reasonably well-researched DD focusing on insider behavior and capital allocation, though speculative on activist catalyst.
Score21
Comments40
Upvote %77%
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So I’ve read a lot of the Adbe posts in this sub, and I feel like most of them focus mainly on the front page numbers. I wanted to take a step back and focus more on analyzing the people who actually run and make decisions about the future of the company, hoping it helps us better understand what’s really going on.
I see some red flags. First, the CFO sold 331k shares one day before the buyback announcement. Then they announce another 25B buyback program. To me that basically translates to we don’t know where to invest the money so we’re just burning it(catching a falling knife), which is pretty much what happened with the current 25B program while the stock is down -30%YTD.
Also the CEO is making 51M in total comp. Are we rewarding failure here ? He only owns about 0.11% of the company and has basically appointed most of the board. None of them have been buying at current prices. Which I see as a very bearish signal. The stock is at one of its cheapest levels and there’s no insider buying at all ???
They also announced they were searching for a new CEO about 45 days ago, and there’s still no news. What’s your take on that ? Personally if it ends up being an internal appointment, I would seriously consider cutting a large portion of my exposure to this company.
At this point the only thing I think could really change the trajectory is an activist filing a 13D and stepping in to shake things up, because the current board feels way too conservative
CFO sold 331k shares day before $25B buyback announcement; CEO owns only 0.11% with $51M comp; no insider buying at 30% YTD low. Insider actions signal lack of confidence in near-term value, and the stalled CEO search suggests internal dysfunction—creating downside risk if no activist intervenes. Short Adobe as management appears to be burning cash on buybacks while insiders exit, pointing to further price erosion. An activist filing a 13D could catalyze a turnaround; strong product moat (Creative Cloud) may support valuation; market rotation could lift tech.
This Reddit post, published April 25, 2026,
features u/Street-Broccoli-968
discussing ADBE.
1 trade idea extracted by AI with direction and confidence scoring.