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Autodesk Stock Set for Big August Loss After Earnings

No fewer than eight ADSK price-target cuts have come through overnight

Aug 28, 2019 at 9:59 AM
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Autodesk, Inc. (NASDAQ:ADSK) stock is down 11.1% to trade at $133.57, after the AutoCAD maker cut its full-year forecast, citing macro uncertainty amid U.S.-China trade tensions. This is offsetting the software concern's second-quarter earnings and revenue beats, and has ADSK stock on track for its biggest one-day percentage loss since Nov. 29, 2017, when it dropped 15.9%.

Analyst reaction has been swift, with at least eight brokerages cutting their ADSK price targets. Wedbush set the lowest price target at $149 -- down from $164 -- well below the average 12-month price target of $174.30. No downgrades have come through yet, with 11 of 16 analysts continuing to maintain a "buy" or better rating on the stock.

This optimism has been seen in the options pits, too. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ADSK's 10-day call/put volume ratio of 1.67 ranks in the 86th annual percentile, meaning calls have been bought to open over puts at a quicker-than-usual clip.

Looking closer at the charts, Autodesk stock rallied hard off its late-December low near $118, eventually topping out at a record high of $178.95 on May 1. The shares have pulled back dramatically in August amid sector-related headwinds, and today's drop puts ADSK on track for its worst monthly performance since last October.

 

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