Autodesk | ADSK | Long at $261.72Autodesk NASDAQ:ADSK is a leading software company providing 3D design, engineering, and entertainment solutions. It's primarily known for AutoCAD, a program used by professionals in architecture, engineering, construction, and product design to create, visualize, and manage projects from concept to completion. It's increasingly integrating AI for enhanced automation and workflows, operating on a subscription model with cloud-based tools.
Technical Analysis
The price is currently bouncing along my selected historical simple moving average. So far, it has behaved "nicely and predictably" in this area of support. Momentum is trending upward, but this doesn't mean a short-term dip into the low $200's isn't ahead. The glaring price gap between $335 and $339 on the daily chart will be filled, though. It's just a matter of when. Given the low RSI (indicating a potential reversal) and current area of support, it seems primed for a move up soon...
Health
Debt-to-equity: 0.9x (very healthy)
Altman's Z score / bankruptcy risk / long-term health: 5.3 (very low risk)
Quick ratio / ability to pay today's bills / short-term health: 0.8 (minor risk)
Growth
Earnings-per-share growth expected 45.1% between 2025 ($10.23) and 2028 ($14.84)
Revenue growth expected around 32% between 2025 ($7.2 billion) and 2028 ($9.8 billion)
Insiders
Lots of selling (bearish, but common among tech)
Action
NASDAQ:ADSK transition to a subscription-based/cloud-native model, continued EPS and revenue growth, dominant market position, and exploration of AI-drive tool are all bullish cases for the stock. It's current P/E of 50x, insider selling, and short-term solvency are bearish, though. Given the growth potential, upward momentum, and last gap fill to $339, NASDAQ:ADSK is in a personal buy zone at $261.72. It's a starter position in case short-term bearishness kicks in and additional, lower opportunities open up in the low $200's.
Targets into 2029
$292.00 (+11.6%)
$338.00 (+29.1%)
Long
