Shares of Autodesk, Inc. (NASDAQ:ADSK) experienced a significant rise in pre-market trading on Wednesday following the release of better-than-expected earnings results. The stock, which closed at $294.43 the previous day, opened at $313.97 and last traded at $308.06 with a trading volume of 829,928 shares.
The software company reported earnings per share (EPS) of $2.67 for the recent quarter, surpassing the consensus estimate of $2.50 by $0.17. Autodesk’s revenue for the quarter reached $1.85 billion, also exceeding expectations of $1.81 billion. The company demonstrated a strong financial performance, with a return on equity of 51.23% and a net margin of 15.75%. Year-over-year, revenue increased by 18.0%, compared to the same quarter last year when EPS was $2.17. Autodesk has set its fiscal year 2026 guidance at $10.180 to $10.250 EPS, with fourth-quarter guidance of $2.590 to $2.670 EPS.
Analyst Ratings Reflect Optimism
A number of research firms have recently adjusted their ratings for Autodesk shares. KeyCorp raised its target price from $350.00 to $365.00 and assigned an “overweight” rating. Similarly, Barclays reiterated an “overweight” rating with a price objective of $390.00. Mizuho increased its target from $350.00 to $375.00, also providing an “outperform” rating. Wells Fargo & Company maintained an “overweight” rating with a target price of $380.00.
In contrast, Wall Street Zen downgraded Autodesk from a “strong-buy” to a “buy” rating. Among analysts, one has rated the stock as a Strong Buy, twenty have given it a Buy rating, and six have designated it as a Hold. According to data from MarketBeat, Autodesk currently has an average rating of “Moderate Buy” and a consensus target price of $363.24.
Insider Transactions and Institutional Holdings
In recent insider activity, Director Ayanna Howard sold 917 shares on September 29, 2023, at an average price of $325.00, totaling $298,025.00. This sale reduced her ownership to 3,476 shares, valued at approximately $1,129,700. Additionally, Executive Vice President Ruth Ann Keene sold 2,761 shares on September 3, 2023, for around $869,991.10, bringing her total shares to 80,255, worth approximately $25,288,350.50.
In the past ninety days, insiders have sold 35,386 shares for a total of $11,433,201, and insider ownership now stands at 0.15%.
Institutional investors have also been active, with Beacon Financial Group increasing its stake by 3.0% during the second quarter, now holding 1,130 shares valued at $350,000. Other firms, including Freedom Investment Management Inc. and Bridgewater Advisors Inc., have similarly expanded their positions. Currently, institutional investors own approximately 90.24% of Autodesk’s stock.
As of now, Autodesk boasts a market capitalization of $64.97 billion with a price-to-earnings ratio of 63.44 and a PEG ratio of 2.63. The stock has a fifty-day moving average of $307.38 and a two-hundred day moving average of $302.86. Financial ratios indicate a current ratio of 0.76 and a debt-to-equity ratio of 0.91.
Overview of Autodesk’s Offerings
Autodesk, Inc. specializes in providing a suite of 3D design, engineering, and entertainment technology solutions globally. Its products include AutoCAD Civil 3D, a comprehensive tool for civil engineering projects, and Fusion 360, which integrates CAD, CAM, and computer-aided engineering functionalities. The company also offers Industry Collections, targeting professionals in architecture, engineering, construction, and manufacturing sectors.
As the company continues to evolve, its strong financial performance and positive analyst ratings suggest a promising outlook for Autodesk and its stakeholders.
