Joel R Mogy Investment Counsel Dumps $7.5 Million Worth of Adobe (NASDAQ: ADBE) Shares: Is the Stock a Sell?
Key Points
Joel Mogy Investment Counsel (JMIC) sold 20,929 Adobe shares; estimated trade value of approximately $7.51 million based on the average price for Q3 2025.
The transaction represents 0.41% of the fund’s reported U.S. equity assets under management as of September 30, 2025.
Post-trade holding: 50,664 shares valued at $17.87 million as of Q3 2025.
Adobe now accounts for 0.98% of the fund’s AUM as of September 30, 2025, which places it outside the fund’s top five holdings.
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Joel R Mogy Investment Counsel (JMIC) disclosed in an October 16, 2025, SEC filing that it sold 20,929 Adobe shares during Q3 2025.
This was an estimated $7.51 million trade based on the average price for Q3 2025.
What happened
Joel R Mogy Investment Counsel reported a reduction in its position in Adobe (NASDAQ:ADBE), selling 20,929 shares during Q3 2025.
The estimated value of the sale, based on the average closing price for Q3 2025, was approximately $7.51 million.
The position now stands at 50,664 shares as of Q3 2025, according to the firm's SEC Form 13-F filed on October 16, 2025.
What else to know
The fund's post-sale Adobe stake represents 0.98% of its $1.83 billion reportable U.S. equity AUM as of September 30, 2025, down from 1.60% in the previous period
JMIC's top holdings after the filing:
- Nvidia: $257.28 million (14.1% of AUM) as of September 30, 2025
- Alphabet: $158.37 million (8.68% of AUM) as of September 30, 2025
- Apple: $155.49 million (8.52% of AUM) as of September 30, 2025
- Microsoft: $148.56 million (8.14% of AUM) as of September 30, 2025
- Costco Wholesale: $91.43 million (5.0% of AUM)
As of October 15, 2025, Adobe shares were priced at $330.63, marking a one-year decline of 34.9% and underperforming the S&P 500 by 49 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $23.18 billion |
| Net Income (TTM) | $6.96 billion |
| Price (as of market close 10/15/25) | $330.63 |
| One-Year Price Change | -34.92% |
Company Snapshot
Adobe offers software solutions, including Creative Cloud, Document Cloud, and a suite of digital experience and publishing tools; primary revenue is generated through recurring subscription services.
It operates a cloud-based, subscription-driven business model, selling directly to enterprises and end users as well as through a global partner network.
The company serves content creators, marketers, enterprises, and creative professionals across industries worldwide.
Adobe Inc. is a leading global software company specializing in creative, document, and digital experience solutions.
Foolish take
Joel R Mogy Investment Counsel (JMIC) had been steadily accumulating shares over the last few years, with the firm having a 2.5% portfolio allocation in Adobe just two years ago.
However, the company has sold shares of Adobe in the last two quarters -- and heavily in its latest quarter.
With Adobe's stock down 52% from its all-time high, it certainly seems as though JMIC is worried about the long-term future of the company.
Adobe has become an artificial intelligence (AI) battleground stock lately. The market seems torn as to whether the AI revolution will empower -- or completely disrupt -- the company's creative operations.
For instance, OpenAI recently launched its Sora 2 model that lets users create short video clips from text. It doesn't take a wild leap to imagine how this could directly hinder Adobe's video editing and software businesses.
That said, Adobe has grown sales by 11% over the last year and is seeing the professional use cases for its video capabilities remain as robust as ever. Furthermore, the company has its Adobe Firefly unit, which is its own generative AI offering for creators -- so it's not exactly being blindsided by peers like OpenAI.
Trading at just 15 times free cash flow, Adobe could be a tremendous value investment at today's price, but it looks like JMIC doesn't want to risk waiting to find out if the company gets disrupted or not.
Glossary
AUM (Assets Under Management): The total market value of all investments managed by a fund or investment firm.
Form 13-F: A quarterly SEC filing by institutional investment managers disclosing their equity holdings.
Q3: The third quarter of a company's fiscal year, typically covering July through September.
Reportable U.S. equity assets: U.S. stocks and related securities that must be disclosed in regulatory filings.
Top holdings: The largest individual investments in a fund's portfolio, usually ranked by market value.
Stake: The ownership interest or number of shares a fund or investor holds in a company.
Subscription-driven business model: A model where customers pay recurring fees for ongoing access to products or services.
Global partner network: A group of companies or organizations worldwide that help distribute or sell a firm's products.
TTM: The 12-month period ending with the most recent quarterly report.
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Josh Kohn-Lindquist has positions in Adobe, Alphabet, Costco Wholesale, and Nvidia. The Motley Fool has positions in and recommends Adobe, Alphabet, Apple, Costco Wholesale, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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