Stock of the Day

March 5, 2024

Autodesk (ADSK)

$238.93
-$6.24 (-2.5%)
Market Cap: $49.86B

About Autodesk

Autodesk, Inc. provides 3D design, engineering, and entertainment technology solutions worldwide. The company offers AutoCAD Civil 3D, a surveying, design, analysis, and documentation solution for civil engineering, including land development, transportation, and environmental projects; BuildingConnected, a SaaS preconstruction solution; AutoCAD, a software for professional design, drafting, detailing, and visualization; AutoCAD LT, a drafting and detailing software; computer-aided manufacturing (CAM) software for computer numeric control machining, inspection, and modelling for manufacturing; Fusion 360, a 3D CAD, CAM, and computer-aided engineering tool; and Industry Collections tools for professionals in architecture, engineering and construction, product design and manufacturing, and media and entertainment collection industries. It also provides Inventor tools for 3D mechanical design, simulation, analysis, tooling, visualization, and documentation; Vault, a data management software to manage data in one central location, accelerate design processes, and streamline internal/external collaboration; Maya and 3ds Max software products that offer 3D modeling, animation, effects, rendering, and compositing solutions; and ShotGrid, a cloud-based software for review and production tracking in the media and entertainment industry. It sells its products and services to customers directly, as well as through a network of resellers and distributors. Autodesk, Inc. was incorporated in 1982 and is headquartered in San Francisco, California.

Autodesk Bull Case

Here are some ways that investors could benefit from investing in Autodesk, Inc.:

  • Autodesk, Inc. shares surged 6.1% to $245.16 on October 15, 2026, driven by a valuation read-through from Schneider Electric's agreement to acquire PTC, a close peer in engineering software, which suggests the market may be undervaluing Autodesk's strategic position in the design and industrial software sector.
  • The company demonstrated strong fundamental performance in its most recent quarter, reporting revenue of $2.05 billion, which represented a 16.1% year-over-year increase, and earnings per share of $3.30, beating the consensus estimate of $3.12, indicating robust demand for its cloud-based services and software tools.
  • Management has provided optimistic forward-looking guidance, projecting full-year 2027 earnings per share between $12.52 and $12.60, which significantly exceeds the consensus estimate of $12.02, suggesting that the company expects continued acceleration in growth and profitability in the coming year.
  • Insiders have shown confidence in the company's future by making five purchases in the past six months, including a recent buy of 2,000 shares by Director John T Cahill at an average price of $189.20, which often signals that company leadership believes the stock is undervalued relative to its intrinsic worth.
  • Autodesk, Inc. maintains a high CEO approval rating of 0.95 out of 1.0, reflecting strong stakeholder confidence in Andrew Anagnost's leadership, which is a positive indicator for the company's ability to execute its strategy in the competitive application software market.

Autodesk Bear Case

Investors should be bearish about investing in Autodesk, Inc. for these reasons:

  • Several major institutional investors have recently reduced their stakes in the company, including Ninety One UK Ltd, which cut its position by 3.3% in the third quarter, and Ninety One North America Inc., which decreased its holdings by 8.6%, suggesting that some large holders are taking profits or losing confidence in the stock's near-term trajectory.
  • The stock is currently trading at $245.16, which is significantly below its 52-week high of $320.00, indicating that the company has experienced substantial volatility and a significant drawdown from its peak valuation, which may reflect broader market concerns about the software sector or company-specific risks.
  • Autodesk, Inc. has a beta of 1.33, meaning it is more volatile than the overall market, and its debt-to-equity ratio of 0.59 combined with a current ratio of 0.86 suggests that the company may face liquidity pressures or higher financial risk compared to peers with stronger balance sheets.
  • Short interest in the stock has been increasing, with shares shorted rising to 9,378,815 as of September 30, 2026, representing a 12.43% month-over-month increase, which indicates that a growing number of traders are betting against the stock's price appreciation.
  • The company's dividend yield is 0.00%, meaning it does not pay dividends, which may be a disadvantage for income-focused investors who prefer stocks that provide regular cash flow in addition to potential capital appreciation.
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