Autodesk: 8 Different Insiders Have Sold Shares This Month

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 |  About: Autodesk, Inc. (ADSK)
by: Markus Aarnio

Summary

Eight insiders sold Autodesk stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

All eight of these insiders decreased their holdings by more than 10%.

Autodesk (NASDAQ:ADSK) operates as a design software and services company worldwide. Its Platform Solutions and Emerging Business segment offers AutoCAD software.

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Insider selling during the last 30 days

Here is a table of Autodesk's insider activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Jan Becker SVP March 26 15,000 Yes 91,058 shares 14.1%
Pascal Di Fronzo SVP March 26 15,000 Yes 44,300 shares 25.3%
Mark Hawkins CFO March 11-26 35,530 Yes 62,033 shares 36.4%
Carl Bass CEO March 26 97,500 Yes 381,106 shares 20.4%
Steven Blum SVP March 25 15,000 Yes 85,702 shares 14.9%
Paul Underwood VP March 10-26 3,039 No 5,331 shares 36.3%
Crawford Beveridge Director March 17 12,000 Yes 35,473 shares 25.3%
Mary McDowell Director March 5 25,000 No 22,533 shares + 25,000 options 34.5%
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There have been 218,069 shares sold by insiders during the last 30 days. Jan Becker, Pascal Di Fronzo, Mark Hawkins, Carl Bass, Steven Blum, and Crawford Beveridge sold shares pursuant to the Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.

Insider selling by calendar month

Here is a table of Autodesk's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
March 2014 218,069 0
February 2014 2,876 0
January 2014 851,734 0
December 2013 330,750 0
November 2013 22,502 0
October 2013 129,203 0
September 2013 422,423 0
August 2013 32,104 0
July 2013 20,482 0
June 2013 4,000 0
May 2013 37,500 0
April 2013 275,000 0
March 2013 110,451 0
February 2013 0 0
January 2013 50,458 0
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There have been 2,507,552 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

Autodesk reported the fiscal 2014 full-year, which ended January 31, financial results on February 26 with the following highlights:

Revenue $2.3 billion
Net income $228.8 million
Cash $2.3 billion
Debt $0.7 billion
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The eight insiders sold their shares after these results.

Autodesk had a negative quarterly revenue growth year-over-year in the fourth quarter.

Outlook

Autodesk's fiscal 2015 first-quarter guidance is as follows:

Revenue $560-$575 million
EPS GAAP $0.01-$0.04
EPS Non-GAAP $0.19-$0.22
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Autodesk's fiscal 2015 full-year guidance is as follows:

Revenue growth 3%-5%
GAAP operating margin 5%-8%
Net new subscription additions 150,000-200,000
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Competition

Autodesk's competitors include Adobe Systems (NASDAQ:ADBE), Dassault Systemes SA (OTCPK:DASTY), and PTC Inc. (NASDAQ:PTC). Here is a table comparing these companies.

Company ADSK ADBE DASTY PTC
Market Cap: 10.98B 32.24B 14.85B 4.14B
Employees: 7,600 11,847 10,685 5,940
Qtrly Rev Growth (yoy): -0.03 -0.01 0.00 0.02
Revenue: 2.27B 4.05B 2.67B 1.30B
Gross Margin: 0.88 0.86 0.87 0.72
EBITDA: 426.50M 752.51M 834.18M 288.97M
Operating Margin: 0.13 0.11 0.24 0.16
Net Income: 228.80M 271.91M 456.12M 147.62M
EPS: 1.00 0.52 3.57 1.23
P/E: 48.34 124.77 33.13 28.33
PEG (5 yr expected): 4.01 4.77 1.97 1.11
P/S: 4.82 7.92 5.46 3.21
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Autodesk has the weakest revenue growth among these four companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
ADBE 0 699,425
DASTY N/A N/A
PTC 0 189,663
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Adobe Systems has also seen intensive insider selling during the last 30 days.

Conclusion

There have been eight different insiders selling Autodesk, and there have not been any insiders buying Autodesk during the last 30 days. All eight of these insiders decreased their holdings by more than 10%. Autodesk has an insider ownership of 0.30%.

Autodesk has a $37 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $37 price target. I would place a stop loss at $59, which is the all-time high. The three main reasons for the proposed short entry are a bearish Point & Figure chart, negative revenue growth, and the intensive insider-selling activity.

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Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in ADSK over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.