Autodesk, Inc. (ADSK) – Can It Keep from Slowing Down?

Undoubtedly, Autodesk, Inc. (NASDAQ:ADSK) has been one of the most volatile stocks in the market in recent times, and the way it handled Thursday’s volatility suggests the stock may be poised to decline heading into short-terms. The shares dropped -0.23 points or -0.15 percent at $153.15 with a heavy trade volume of 2.228 million shares. After opening the session at $153.05, the shares went as high as $154.26 and as low as $151.93, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $33.6 billion and now has 219.58 million shares outstanding. Autodesk, Inc. (ADSK) stock has lost -4.01 percent of market value in 21 trading days.

ADSK stock has a trailing 3-year beta of 1.95, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$1.61 a share in the trailing twelve months. The stock’s value has surged 19.08 percent year to date (YTD) against a rise of 12.61 percent in 12 month’s time. The company’s shares still trade -9.41 percent away from its 1-year high of $169.05 and 30.1 percent up from 52-week low of $117.72. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Autodesk, Inc. (ADSK) will probably climb 17.81 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $200-month high price target. This represents a whopping 30.59 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $185, which represents a return potential of 20.8 percent when compared to the closing price of the stock of $153.15 on Thursday, March 14. The lowest price target for the stock is $91 — slightly more than -40.58 percent from ADSK’s current share price.

History has shown that shares in Autodesk, Inc. have gone up on 19 different earnings reaction days and are predicted to add 0.06 percent when the company reports upcoming earnings. Investors will get their next glimpse of ADSK’s Q1 earnings on May 16. Analysts are forecasting revenue to climb 32.2 percent to $740M in the fiscal first quarter, while earnings are seen soaring by nearly 683.33 percent to $0.47 per share. It earned $0.46 per share, better than the $0.42, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $737M, better than the $708M analysts expected. Earnings are estimated to increase by -4.4 percent this year, 66.89 percent next year and continue to increase by 63.25 percent annually for the next 5 years.

The stock is currently hovering around the first support level of $151.97. Below this, the next support is placed in the zone of $150.78. Till the time, the ADSK stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 48.14 on daily chart, which may remain a cause for concern. If the price breaks below $150.78 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $154.3 mark may result into a pull-back move towards $155.44 level.

Further, it is sporting a 14.09 on the Price-to-Sales ratio. Compare this with the industry average P/S of 5.45. 88.2 percent is the gross profit margin for Autodesk, Inc. and operating margin sits at -15.2 percent. Along with this, the net profit margin is -17.4 percent.