Formation control finds broad applications in numerous fields, such as cooperative detection, surveillance, transportation, and disaster rescue. In this article, aiming at hunting a moving target, a two-stage surrounding control algorithm is proposed for linear multiagent systems subject to input saturations. An adaptive distributed observer is developed for each agent to reconstruct the target’s position. With the assistance of the algebraic graph theory and low gain feedback technique, distributed controllers are designed to drive the agents to encircle the moving target with a fixed radius and evenly distributed phase angles. Finally, both numerical simulations and experiments are conducted to verify the effectiveness of the proposed control algorithm.