Autodesk (NASDAQ:ADSK) Shares Gap Down After Analyst Downgrade

Key Points

• Autodesk shares gapped down after Wells Fargo cut its price target from $350 to $330, though it kept an overweight rating. The stock opened sharply below Thursday’s close and was trading around $224 in premarket activity.
• Despite the pullback, Autodesk posted a strong Q1 beat with revenue of $1.93 billion and adjusted EPS of $2.99, both above estimates, with revenue up 18.4% year over year.
• The company also raised guidance for fiscal 2027 and Q2, reinforcing optimism about future growth, while Wall Street remains broadly positive with a consensus rating of Moderate Buy and a target price around $327.75.

Autodesk, Inc. (NASDAQ:ADSK - Get Free Report)'s share price gapped down before the market opened on Friday after Wells Fargo & Company lowered their price target on the stock from $350.00 to $330.00. The stock had previously closed at $240.95, but opened at $225.56. Wells Fargo & Company currently has an overweight rating on the stock. Autodesk shares last traded at $224.2640, with a volume of 1,002,745 shares.

ADSK has been the topic of a number of other research reports. Jefferies Financial Group upgraded Autodesk to a "strong-buy" rating in a research report on Tuesday. KeyCorp reduced their price objective on shares of Autodesk from $365.00 to $341.00 and set an "overweight" rating on the stock in a research note on Thursday, May 21st. DA Davidson decreased their target price on shares of Autodesk from $375.00 to $325.00 and set a "buy" rating on the stock in a report on Friday, February 27th. Argus upgraded shares of Autodesk to a "strong-buy" rating in a research report on Friday, March 6th. Finally, Arete Research cut their price target on shares of Autodesk from $460.00 to $456.00 and set a "buy" rating for the company in a report on Thursday, March 26th. Three research analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $327.75.

Key Stories Impacting Autodesk

Here are the key news stories impacting Autodesk this week:

• Positive Sentiment: Autodesk delivered better-than-expected Q1 results, with revenue of $1.93 billion and adjusted EPS of $2.99 both topping estimates, while revenue rose 18.4% year over year. AUTODESK, INC. ANNOUNCES FISCAL 2027 FIRST QUARTER RESULTS
• Positive Sentiment: The company raised guidance for fiscal 2027 and Q2, signaling management confidence in continued growth and profitability. AUTODESK, INC. ANNOUNCES FISCAL 2027 FIRST QUARTER RESULTS
• Positive Sentiment: BTIG reaffirmed its Buy rating and set a $300 price target, while Piper Sandler maintained Overweight, despite trimming its target to $369, reinforcing Wall Street’s bullish long-term view. Benzinga rating update
• Positive Sentiment: Autodesk announced it will present at upcoming investor conferences, which can help keep investors focused on the company’s strategy and outlook. Autodesk to present at upcoming investor conferences
• Neutral Sentiment: Autodesk’s planned $3.6 billion acquisition of MaintainX could expand its operations platform and AI ambitions over time, but it also adds integration and execution risk that may be keeping some investors cautious. Autodesk to acquire MaintainX, advancing unified platform in operations
• Negative Sentiment: Some traders appear to be focusing on the acquisition headline rather than the earnings beat, with reports noting the stock slipped in premarket trading despite strong fundamentals. Why Autodesk (ADSK) Stock Tumbled 5% Despite Strong Earnings Results

Institutional Investors Weigh In On Autodesk

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Torren Management LLC acquired a new position in shares of Autodesk in the fourth quarter valued at approximately $25,000. Measured Wealth Private Client Group LLC acquired a new stake in Autodesk during the 3rd quarter worth approximately $25,000. Kemnay Advisory Services Inc. bought a new stake in Autodesk during the 4th quarter worth approximately $25,000. Archer Investment Corp raised its stake in shares of Autodesk by 112.2% during the fourth quarter. Archer Investment Corp now owns 87 shares of the software company's stock valued at $26,000 after acquiring an additional 46 shares during the last quarter. Finally, Prosperity Bancshares Inc acquired a new position in shares of Autodesk during the fourth quarter worth $27,000. Institutional investors own 90.24% of the company's stock.

Autodesk Trading Down 6.7%

The company has a debt-to-equity ratio of 0.82, a current ratio of 0.85 and a quick ratio of 0.85. The company has a market cap of $47.48 billion, a price-to-earnings ratio of 42.91, a price-to-earnings-growth ratio of 1.53 and a beta of 1.32. The business's fifty day moving average price is $238.86 and its 200 day moving average price is $260.61.

Autodesk (NASDAQ:ADSK - Get Free Report) last posted its quarterly earnings data on Thursday, May 28th. The software company reported $2.99 earnings per share for the quarter, beating analysts' consensus estimates of $2.84 by $0.15. The business had revenue of $1.93 billion during the quarter, compared to the consensus estimate of $1.89 billion. Autodesk had a return on equity of 53.51% and a net margin of 15.60%.Autodesk's quarterly revenue was up 18.4% on a year-over-year basis. During the same period in the prior year, the business posted $2.29 earnings per share. Autodesk has set its FY 2027 guidance at 12.400-12.650 EPS and its Q2 2027 guidance at 3.100-3.140 EPS. Research analysts anticipate that Autodesk, Inc. will post 9.35 earnings per share for the current fiscal year.

About Autodesk

Autodesk, Inc NASDAQ: ADSK is a software company that develops design and creation tools for the architecture, engineering and construction (AEC), manufacturing, and media and entertainment industries. Headquartered in San Rafael, California, the company was founded in 1982 and is best known for pioneering CAD (computer-aided design) software. Autodesk sells products and services to a global customer base, including architects, engineers, contractors, product designers, and content creators.

The company's product portfolio includes industry-standard design and modeling applications such as AutoCAD, Revit, Inventor, Fusion 360, Maya and 3ds Max, as well as cloud-based collaboration and project management platforms like BIM 360 and Autodesk Construction Cloud.

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