Autodesk Stock Attracts Options Attention After Earnings

Analysts chimed in with over 10 price-target cuts

Digital Content Manager
Nov 23, 2022 at 12:34 PM
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The shares of Autodesk Inc (NASDAQ:ADSK) are tumbling further this afternoon, last seen down 5.4% at $197.73 in the wake of the software company's third-quarter earnings report. While revenue and earnings fell in line with expectations, the company lowered its annual billings outlook and slashed its annual free cash flow forecast. So naturally, that has investors spooked. 

The stock was hit with a deluge of price-target cuts following the report, with no less than 10 brokerages lowering their objectives. The lowest came from MoffettNathanson to $177, which noted lack of clarity with cash flow and macro impacts will likely put near-term pressure on the equity, though it did note long-term strength remains in place. Meanwhile, Credit Suisse chimed in saying that ADSK could push through geopolitical and macroeconomic disruptions to see more upbeat revenue growth in the long term. 

The stock is currently trending on StockTwits and is popular among options players right now. At last check, 8,304 calls and 8,902 puts have been exchanged, which is seven times the intraday average. The most popular position is the weekly 11/25 200-strike call, followed by the weekly 12/2 190-strike put, with positions being opened at both. 

ADSK has yet to work off its near 30% year-to-date deficit. The shares were off by as much as $188.01 earlier today, trading at their lowest level since Oct. 14. The stock has shed 10% in the last trading week alone and prior to that was turned away at $235, a similar resistance point back in August.


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