Stock of the Day

March 5, 2024

Autodesk (ADSK)

$285.00
-$6.02 (-2.1%)
Market Cap: $62.57B

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.:

  • Recent analyst upgrades have increased price targets for Autodesk, Inc., with estimates now reaching as high as $350.00, indicating strong market confidence in the company's growth potential.
  • Institutional ownership is robust, with over 90% of the company's stock held by institutional investors, suggesting a strong endorsement from major financial entities.
  • The current stock price is $302.72, reflecting a solid market position and potential for appreciation as the company continues to innovate and expand its offerings.
  • Autodesk, Inc. has shown significant growth in institutional holdings, with firms like Principal Securities Inc. and Stoneridge Investment Partners LLC increasing their stakes, indicating positive sentiment among large investors.
  • Analysts have rated Autodesk, Inc. with a consensus rating of "Moderate Buy," which suggests that the stock is viewed favorably by a majority of market analysts.

Autodesk Bear Case

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

  • The stock has experienced volatility, with recent trading showing fluctuations, including a drop to $297.28, which may indicate uncertainty in the market.
  • Despite strong institutional support, the company's high price-to-earnings (P/E) ratio of 60.06 suggests that the stock may be overvalued compared to its earnings, which could deter value-focused investors.
  • Autodesk, Inc. has a relatively low quick ratio of 0.65, indicating potential liquidity issues, which could affect its ability to meet short-term obligations.
  • Recent insider selling, such as the sale of shares by Director Mary T. Mcdowell, may raise concerns about the confidence of company leadership in the stock's future performance.
  • The competitive landscape in the software industry is intense, and Autodesk, Inc. must continuously innovate to maintain its market position, which poses risks for investors.

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