Macquarie Initiates Coverage on Autodesk (NASDAQ:ADSK)

On December 14, 2024, Macquarie analysts commenced coverage on Autodesk (NASDAQ:ADSK), a leading software company known for its design software solutions. In their report, Macquarie has assigned an "outperform" rating for Autodesk, establishing a price target of $380.00 for the stock. This target indicates a potential increase of 25.09% from the stock’s previous closing price.

Other brokerage firms have also recently offered their assessments of Autodesk's stock. Notably, KeyCorp raised its price target for Autodesk from $325.00 to $330.00, designating the company with an "overweight" rating on November 20. Meanwhile, BMO Capital Markets adjusted its target from $287.00 to $308.00, advising a "market perform" rating as of November 27. Conversely, HSBC chose to lower Autodesk's rating from "buy" to "hold," setting its price target at $290.00 in a report dated November 29. Bank of America updated its price objective for Autodesk, increasing it from $260.00 to $285.00 while issuing a "neutral" rating on August 30. Lastly, Citigroup raised its target from $358.00 to $361.00 with a "buy" rating noted on November 29. Collectively, ten analysts have rated Autodesk with a hold and fourteen have assigned buy ratings, leading to an average rating of "Moderate Buy" along with an average price target of $323.05, as reported by MarketBeat.

Current Stock Performance

As of Thursday, ADSK stock opened at $303.77. The company has experienced a 50-day moving average of $296.76 and a 200-day moving average of $263.57. Autodesk boasts a market capitalization of $65.31 billion, with a price-to-earnings (PE) ratio of 60.27 and a price-to-earnings-growth (PEG) ratio of 3.62, reflecting a beta of 1.43. Over the past year, the stock has recorded a low of $195.32 and a high of $326.62, and it holds a quick ratio of 0.65 alongside a debt-to-equity ratio of 0.76.

In its latest quarterly earnings report, released on November 26, Autodesk reported earnings of $2.17 per share (EPS), surpassing analysts' expectations of $2.12 by $0.05. The company's return on equity stood at 53.87%, with a net margin of 18.30%. The reported revenue for the quarter was $1.57 billion, slightly exceeding analyst estimates of $1.56 billion. This represents an 11.0% increase in revenue compared to the same quarter from the previous year. Analysts project Autodesk will achieve an EPS of 5.76 for the current fiscal year.

Insider Trading Activities

Recent trading activity involving Autodesk insiders includes a sale by CAO Stephen W. Hope, who disposed of 286 shares on September 30 for an average price of $274.84, totaling $78,604.24. Following this transaction, Hope now owns 4,879 shares valued at approximately $1,340,944.36, marking a decrease of 5.54% in his stake. Additionally, Director Mary T. McDowell sold 550 shares on November 15 at an average price of $305.06, resulting in a total of $167,783.00. Post-sale, McDowell retains 30,249 shares valued at about $9,227,759.94, indicating a 1.79% decline in ownership. In the past three months, insiders sold a total of 1,936 shares valued at around $549,333, leaving corporate insiders with only 0.14% ownership of the stock.

Institutional Interest

Several institutional investors have recently modified their positions in Autodesk. Notably, Jag Capital Management LLC acquired a new stake in Autodesk valued at approximately $13,861,000 during the third quarter, while LMR Partners LLP invested about $12,643,000 during the same period. Starboard Value LP also entered a new position worth approximately $510,189,000. Erste Asset Management GmbH purchased a new stake valued at approximately $20,087,000. Meanwhile, Bank of Montreal Can increased its shareholding by 8.7%, now owning 913,516 shares worth $248,385,000 after buying an additional 73,363 shares. Currently, 90.24% of Autodesk's stock is held by institutional and hedge fund investors.

Company Overview

Autodesk, Inc. specializes in providing 3D design, engineering, and entertainment technology solutions globally. The company’s product offerings include AutoCAD Civil 3D, a design and documentation solution for civil engineering projects; BuildingConnected, a preconstruction SaaS solution; AutoCAD, a professional design and drafting tool; AutoCAD LT for drafting and detailing; Fusion 360, a multifunction CAD tool; and various industry collections for architecture, engineering, construction, product design, and entertainment industries.

Macquarie, Autodesk, Analysis