Autodesk Stock Hits 2-Year Low After Downgrade

Analysts are eyeing Friday's upcoming first-quarter earnings report

Deputy Editor
May 23, 2022 at 10:53 AM
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Autodesk Inc (NASDAQ:ADSK) is down 8.7% to trade at $174.46 at last glance, after Deutsche Bank downgraded the stock to "hold" from "buy" ahead of Friday's upcoming earnings report. The firm also slashed its price objective to $225 from $275, while RBC and Stifel chimed in with significant price-target cuts as well. 

Deutsche Bank expects mixed first-quarter results from Autodesk, and noted potential long-term headwinds such as changing demand, the possibility of less multi-year contracts, and the war in Ukraine. ADSK finished three of its last eight post-earnings sessions higher, averaging a 4.5% swing in either direction. This time around, the options pits are pricing in a much larger 15.5% move. 

Today's negative price action has Autodesk stock extending its recent May 12 two-year low of $175.41, earlier falling as low as $174.17. The stock has struggled on the charts, down 36.8% year-to-date, with the descending 50-day moving average guiding the shares lower since November's steep post-earnings bear gap.

Meanwhile, calls are much more popular than usual in the options pits. ADSK's 50-day call/put volume ratio of 3.25 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than 96% of readings from the past year. 

There is still plenty of room for further bear notes, as analysts still lean optimistic as well. Of the 22 analysts in coverage, 16 still carry a "buy" or better rating. Plus, the 12-month consensus price target of $268.82 is a 53.4% premium to current levels. 

 

 

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