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

Key Points

• Autodesk shares fell after Piper Sandler cut its price target from $369 to $338, although it maintained an Overweight rating. The stock opened at $261.16 after previously closing at $270.58.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $322.65; other firms issued targets ranging from $269 to $325.
• Autodesk reported fiscal Q2 revenue of $2.05 billion and adjusted EPS of $3.30, beating expectations, and raised its full-year outlook. However, weaker-than-expected third-quarter EPS guidance and concerns about generative AI weighed on sentiment.

Autodesk, Inc. (NASDAQ:ADSK - Get Free Report) gapped down prior to trading on Friday after Piper Sandler lowered their price target on the stock from $369.00 to $338.00. The stock had previously closed at $270.58, but opened at $261.16. Piper Sandler currently has an overweight rating on the stock. Autodesk shares last traded at $254.98, with a volume of 497,622 shares changing hands.

Other equities research analysts also recently issued reports about the stock. Citigroup lifted their price target on shares of Autodesk from $252.00 to $269.00 and gave the company a "neutral" rating in a research report on Thursday, August 20th. New Street Research set a $277.00 price objective on Autodesk in a report on Thursday, August 20th. DA Davidson reissued a "buy" rating and set a $325.00 target price on shares of Autodesk in a report on Friday, May 29th. Royal Bank Of Canada decreased their price target on Autodesk from $335.00 to $305.00 and set an "outperform" rating on the stock in a research report on Friday, May 29th. Finally, Robert W. Baird boosted their price target on Autodesk from $312.00 to $325.00 and gave the company an "outperform" rating in a research note on Friday, August 21st. Two research analysts have rated the stock with a Strong Buy rating, twenty-four have given a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $322.65.

Insiders Place Their Bets

In other news, EVP Janesh Moorjani purchased 2,500 shares of the company's stock in a transaction dated Monday, June 15th. The stock was bought at an average cost of $197.67 per share, for a total transaction of $494,175.00. Following the purchase, the executive vice president owned 50,993 shares of the company's stock, valued at approximately $10,079,786.31. The trade was a 5.16% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director John T. Cahill acquired 2,000 shares of the business's stock in a transaction that occurred on Tuesday, June 23rd. The shares were purchased at an average cost of $189.20 per share, for a total transaction of $378,400.00. Following the acquisition, the director owned 4,000 shares in the company, valued at $756,800. This represents a 100.00% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.14% of the stock is currently owned by corporate insiders.

More Autodesk News

Here are the key news stories impacting Autodesk this week:

• Positive Sentiment: Autodesk reported fiscal Q2 2027 revenue of $2.05 billion, up 16.1% year over year and above the $2.01 billion consensus estimate. Adjusted EPS of $3.30 also exceeded expectations of $3.12, compared with $2.62 in the prior-year quarter. Autodesk fiscal 2027 second-quarter results
• Positive Sentiment: Management raised its fiscal 2027 outlook, including EPS guidance of $12.52-$12.60 versus the $12.02 analyst consensus and revenue guidance of approximately $8.6-$8.7 billion versus an $8.2 billion consensus. The company also increased its billings outlook to $8.575-$8.65 billion following the MaintainX acquisition. Autodesk raises fiscal 2027 billings outlook
• Positive Sentiment: Analysts remain broadly constructive. BTIG reaffirmed a Buy rating with a $300 price target, Bank of America maintained its Buy rating and $300 target, and Piper Sandler retained an Overweight rating despite reducing its target to $338. Autodesk analyst rating update
• Neutral Sentiment: Autodesk will present at Citi’s Global TMT Conference and Goldman Sachs’ Communacopia + Technology Conference on September 9, potentially giving management an opportunity to discuss AI initiatives, subscription momentum and the MaintainX integration. Autodesk investor conference announcement
• Negative Sentiment: Fiscal Q3 adjusted EPS guidance of $3.04-$3.09 came in below some Wall Street expectations, overshadowing the quarterly beat. Investors are also weighing potential disruption from generative AI tools, contributing to the extended-hours decline. Autodesk quarterly profit outlook
• Negative Sentiment: BMO Capital Markets raised its price target to $283 but assigned a Market Perform rating, signaling limited near-term upside from the current valuation. Piper Sandler also lowered its target from $369 to $338, reflecting more cautious expectations even while remaining bullish.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Torren Management LLC bought a new position in Autodesk during the 4th quarter worth $25,000. Measured Wealth Private Client Group LLC acquired a new stake in shares of Autodesk in the third quarter valued at about $25,000. Kemnay Advisory Services Inc. acquired a new stake in shares of Autodesk in the fourth quarter valued at about $25,000. Archer Investment Corp raised its position in shares of Autodesk by 112.2% during the fourth quarter. Archer Investment Corp now owns 87 shares of the software company's stock worth $26,000 after acquiring an additional 46 shares during the last quarter. Finally, Prosperity Bancshares Inc bought a new position in shares of Autodesk during the fourth quarter worth about $27,000. Institutional investors own 90.24% of the company's stock.

Autodesk Stock Performance

The stock has a 50 day moving average of $224.60 and a 200 day moving average of $232.09. The company has a market capitalization of $53.66 billion, a price-to-earnings ratio of 37.07, a price-to-earnings-growth ratio of 1.56 and a beta of 1.29. The company has a quick ratio of 0.83, a current ratio of 0.83 and a debt-to-equity ratio of 0.78.

Autodesk (NASDAQ:ADSK - Get Free Report) last released its earnings results on Thursday, August 27th. The software company reported $3.30 earnings per share for the quarter, beating analysts' consensus estimates of $3.12 by $0.18. Autodesk had a net margin of 19.49% and a return on equity of 57.14%. The business had revenue of $2.05 billion during the quarter, compared to the consensus estimate of $2.01 billion. During the same quarter in the prior year, the firm posted $2.62 EPS. The company's revenue for the quarter was up 16.1% compared to the same quarter last year. Autodesk has set its FY 2027 guidance at 12.520-12.600 EPS and its Q3 2027 guidance at 3.040-3.090 EPS. As a group, analysts predict that Autodesk, Inc. will post 9.7 EPS for the current 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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