Autodesk (NASDAQ-ADSK) shares were at an all-time high today (2nd June) at 216.22 and show signs of an upward trend. This is the most unusual activity recorded at Autodesk which takes June 220 strike calls. This is considered as a very stunning move in which the strike calls are at this price.
- AUTODESK has a market capitalization of $46.11bn, PE Ratio (price-to-earnings ratio) of 49.
- A PEG ratio of 84 and having a BETA of 1.60.
- On 27th May, the company released its earnings results where the company reported $0.85 EPS for the quarter, and having revenue of $866.00 million during the quarter.
- The company’s quarterly revenue was up by 17.7% compared to last year’s quarter. In the last quarter, the company posted $0.45 earnings per share.
- Hedge funds and institutional investors recently reduced or added to their stake in the company.
- In related news, the company recently announced the pre-release of the BIM360 assets module within Autodesk Construction Cloud.
As the stock price of ADSK looks very expensive at 10 times forward. Is this price better for the investor? Let’s move more in-depth on it. Beyond the shadow of a doubt, Autodesk is dealing in design software which turns an idea into new realities of the future, its software and emerging technologies such as artificial intelligence (AI), 3D-printing, generative design and robotics for media manufacturing and construction industry.
Autodesk is continuing to maintain its flagship in computer-aided design (CAD) software and Revit software which are used by engineers, architects and structural designers to work effectively. With this, Autodesk also offers a digital prototyping software including fusion 360, Autodesk product design suite and the ADSK is back for trading at all-time highs. The share shoots up to more than 60% from rock-bottom in March. At that time the investors are in disquieted due to pandemic impact on manufacturing and Autodesk end consumer base. The company recently came up with its first-quarter earnings results that provide insights to the investors.
Throughout, ADSK has stayed an impressive player in NASDAQ for the long term. By shoot of share price by 10x provides a spark. This can be observed by its valuation revenue growth and stock performance. Autodesk, (NASDAQ: ADSK) was in 65 hedge funds portfolios in March. ADSK shareholders have witnessed an increase in positively from smart money recently.
As more than two-thirds of its revenue comes from the manufacturing and construction industry having consumer-like MQDC, General Motors, MODBOT, MOOM Bike. With the spike in the stock price, the company also faces some fundamental risks in March. So, an investor should wait for the share to come with better price later.
The Company also expects that full-year operating margin will expand by approximately 2% to 4%. As ANDREW ANAGNOST, CEO said, “Although our fiscal year 21 results are being impacted by COVID-19, we are confident in our fiscal 23 free cash flow targets of $2.4 billion, assuming the recovery starts by the end of this fiscal year. We have built a resilient business model that will allow us to capitalize on multiple tailwinds once we exit the current pandemic”. This provides positive insight to the investors.
FIRST QUARTER FISCAL 2021 FINANCIAL HIGHLIGHTS
- Total revenue increased by 20% to $886million.
- GAAP operating margin was 15% up 11% points.
- Non-GAAP diluted EPS was $0.30, Non-GAAP diluted EPS was $0.85.
- Cash flow from operating activities was $327 million, free cash flow was $307million.
In the end, based on all the reports, I came across around 60% analysts saying buy, 30% analysts saying hold and 20% analysts saying sell. Personally, I believe investment in the company has been made very strategically by keeping demand from potential consumer that the company holds.