Autodesk, Inc. (ADSK) Announces Major Restructuring Plan

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Today it was announced that Autodesk, Inc. (NASDAQ:ADSK) will be restructuring their business in order to cut costs and streamline organization. As a part of this new restructuring plan the company will cut approximately 10% of their workforce, which amounts to around 925 employees. The restructuring will cost Autodesk, Inc. (NASDAQ:ADSK) between $85 and $95 million.

“As we progress through our business model transition, we continue to take a comprehensive look at our company to see where we can be more effective and efficient. To realize maximum value for both our customers and shareholders, and as a follow-on to previously discussed cost reduction actions, we are restructuring so we can focus resources on areas that will accelerate the move to the cloud and transition to a subscription-based business,” said Carl Bass, Autodesk President and CEO.

The company believes that these changes will lead to significant cost savings from fiscal 2017 and onward. Shares of are trading up considerably this afternoon thanks to this news. The stock is up 8.29% or $3.81 following the news, hitting $49.69 per share. About 4.72M shares traded hands or up 83.66% from the average. ADSK has declined 8.97% since June 29, 2015 and is currently downtrending. It has underperformed the S&P500 by 0.10%.

From a total of 14 analysts covering Autodesk Inc. (NASDAQ:ADSK) stock, 6 rate it a “Buy”, 2 a “Sell”, and 6 a “Hold”. This means that 43% of the ratings are positive. The highest target price is $85 while the lowest target price is $45. The mean of all analyst targets is $63.07 which is 26.93% above today’s ($49.69) stock price. Autodesk Inc. was the topic of 34 analyst reports since August 4, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on December 4 with a “Sector Perform” rating. Goldman Sachs downgraded shares to a”Buy” rating and a $73 target share price in their report from an August 5. Morgan Stanley downgraded ADSK stock in a recent report from November 10 to a “Equal-Weight” rating. Finally, OTR Global downgraded the stock to a “Mixed” rating in a report they issued on an October 30.

The institutional sentiment increased to 1 in Q2 2015. It’s up 0.02, from 0.98 in 2015Q2. The ratio is positive, as 68 funds sold all their Autodesk, Inc. shares they owned while 136 reduced their positions. 54 funds bought stakes while 149 increased their total positions. Institutions now own 216.91 million shares which is 4.61% more than the previous share count of 207.36 million in 2015Q2.

Hmi Capital Llc holds 16.32% of its total portfolio in Autodesk, Inc., equating to 1.18 million shares. Domini Social Investments Llc owns 7,641 shares representing 5.51% of their total US portfolio. Moreover, Soroban Capital Partners Lp has 4.94% of their total portfolio invested in the company, equating to 15.42 million shares. The New York-based Marble Arch Investments Lp has a total of 4.69% of their portfolio invested in the stock. Eminence Capital Lp, a New York-based fund reported 6.64 million shares owned.

Since March 11, 2015, the stock had 0 insider purchases, and 2 insider sales for a total of $1.77 million in net activity. Bass Carl sold 30,000 shares worth $1.50 million. Beveridge Crawford W sold 6,000 shares worth $272,340. Halvorsen Kris sold 5,000 shares worth $253,105. Rafael Betsy sold 4,000 shares worth $217,570. The insider Dawson J Hallam sold 9,964 shares worth $539,640.

Autodesk, Inc. is a design software and services company, offering clients productive business solutions through technology services and products. The company has a market cap of $10.70 billion. The Firm serves clients in the architecture, engineering and construction; manufacturing, and digital media, consumer and entertainment industries. It currently has negative earnings. The Firm operates in four divisions: Architecture, Engineering and Construction (AEC), Platform Solutions and Emerging Business (PSEB), Manufacturing (MFG), and Media and Entertainment (M&E).

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