Is Autodesk Inc. (ADSK) A Good Investment?

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Autodesk Inc. (NASDAQ:ADSK) finished Wednesday with a subtraction of -$4.39 to close at $181.90, a downside of -2.36 percent. An average of 1,240,780 shares of common stock have been traded in the last five days. There was a fall of -$6.02 in the past week, and it reached a new high 2 times over the past 12 months. The last 20 days have seen an average of 1,538,160 shares traded, while the 50-day average volume stands at 1,648,064.

ADSK stock has decreased by -6.89% in the last month. The company shares reached their 1-month lowest point of $181.59 on 12/28/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $163.20 and a high of $285.37 in 52 weeks. It has reached a new high 1 time so far this year and lost -35.31% or -$99.29 in price. In spite of this, the price is down -36.26% from the 52-week high.


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Insider Transactions

ADSK stock investors should be aware that Autodesk Inc. (ADSK) stock had its last reported insider trading activity 8 days ago on Dec 21. In this transaction, the insider spent $77,355. EVP, Chief People Officer, Pearce Rebecca, disposed of 713 shares at a price of $207.45 on Dec 01. The insider now owns more than $147,910 worth of shares. Prior to that, EVP, Chief People Officer Pearce Rebecca went on to Sale 436 shares at $200.02 each on Nov 25. An amount of $87,209 was transacted.

Valuation Metrics

Autodesk Inc. (ADSK) has a trailing price-to-earnings (P/E) ratio of 64.16. The stock’s beta is 1.47. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 8.01, the price-to-book (PB) ratio at 43.41, and the price-to-cash flow ratio at 21.27.

Financial Health

The quick ratio of Autodesk Inc. for the three months ended July 30 was 0.70, and the current ratio was 0.70, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 2.52 and a total debt to equity ratio of 2.90 for the quarter ending July 30. Its gross profit as reported stood at $3.97 billion compared to revenue of $4.39 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Autodesk Inc.’s return on assets was 7.30%.

Earnings Surprise

For the three-month period that ended July 30, Autodesk Inc. had $139.0 million in cash and short-term investments compared to $2.28 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $198.0 million in the quarter, while revenues were grew 30.96%. The analyst consensus anticipated Autodesk Inc.’s latest quarter earnings to come in at $1.57 per share, but it turned out to be $1.65, a 5.10% surprise. For the quarter, EBITDA amounted to $293.0 million. Shareholders own equity worth $215.77 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Autodesk Inc. (ADSK) price momentum. RSI 9-day as of the close on 28 December was 30.28%, suggesting the stock is Neutral, with historical volatility in this time frame at 22.40%.

As of today, ADSK’s price is $187.34 -3.20% or -$6.02 from its 5-day moving average. ADSK is currently trading -6.80% lower than its 20-day SMA and -17.95% lower than its 100-day SMA. However, the stock’s current price level is -8.45% below the SMA50 and -3.60% below the SMA200.

The stochastic %K and %D were 4.94% and 7.63%, respectively, and the average true range (ATR) was 5.92. With the 14-day stochastic at 1.03% and the average true range at 6.51, the RSI (14) stands at 36.20%. The stock has reached -3.40 on the 9-day MACD Oscillator while the 14-day reading was at -6.95.

Analyst Ratings

Mizuho downgraded Autodesk Inc. (NASDAQ: ADSK) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a Buy.

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