Autodesk Stock Rises After Starboard Value Takes a Stake
Starboard Value revealed a large stake in Autodesk and the activist investor is pushing for changes. Here's what you need to know.


Autodesk (ADSK) stock jumped more than 4% at the start of trading Monday after a report in The Wall Street Journal indicated activist investor Starboard Value has built an estimated $500 million stake in the global software firm.
Starboard's concerns are centered around Autodesk's operations, corporate governance and how the company handled a recent accounting probe, the WSJ said, citing people familiar with the matter. Starboard thinks Autodesk should improve its margins and make changes to its board of directors and it recently met with ADSK management to discuss these issues.
As part of its activist investing push, Starboard is also weighing legal action to reopen Autodesk's director-nomination window and to delay the company's annual shareholder meeting, which is currently scheduled for July 16, The Wall Street Journal report indicated.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"We are confident in our strategic direction, significant margin opportunity, and our corporate governance," an Autodesk spokesperson said, according to the WSJ, adding that it welcomes constructive feedback from shareholders.
Autodesk stock has a market cap of about $51 billion at the time of this writing, so Starboard’s estimated $500 million stake would be roughly 1% of the company. While it's a large amount of money, it still does not make Starboard a top 10 stakeholder in Autodesk. Currently, The Vanguard Group and BlackRock are the largest stakeholders, owning roughly 9% and 8.5% of the company, respectively.
Is Autodesk stock a buy, sell or hold?
Even though the tech stock has drastically underperformed the broad market this year, down 2.6% for the year to date vs the S&P 500's nearly 14% gain, analysts are bullish.
According to S&P Global Market Intelligence, the average analyst target price for ADSK stock is $270.20, representing implied upside of more than 14% to current levels. Additionally, the consensus recommendation is Buy.
Financial services firm Oppenheimer is one of the bullish outfits on ADSK stock with an Outperform rating (equivalent to a Buy) and a $275 price target.
"We expect Autodesk to deliver durable high-teens to low-20% earnings growth powered by double-digit revenue growth, and consistent margin expansion in the mid to long term," Oppenheimer analyst Ken Wong wrote in a June 12 note. "We also believe Autodesk is well positioned to capitalize on the digitization of the construction market, which remains a significantly large ($12 billion total addressable market) analog end-market."
Oppenheimer's $275 price target represents implied upside of over 16% to current levels.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
5 Historic Philadelphia Homes for Sale Now
Philadelphia is a goldmine of historic properties that rival the best in New York, London and Paris for charm and opulence. Here are five gems you can own.
By Charlotte Gorbold
-
When to Sell Your Stock
Knowing when to sell a stock is a major decision investors must make. While there's no one correct answer, we look at some best practices here.
By Charles Lewis Sizemore, CFA
-
When to Sell Your Stock
Knowing when to sell a stock is a major decision investors must make. While there's no one correct answer, we look at some best practices here.
By Charles Lewis Sizemore, CFA
-
Within Five Years of Retirement? Five Things to Do Now
If you're retiring in the next five years, your to-do list should contain some financial planning and, according to current retirees, a few life goals, too.
By Evan T. Beach, CFP®, AWMA®
-
The Home Stretch: Seven Essential Steps for Pre-Retirees
The decade before retirement is the home stretch in the race to quit work — but there are crucial financial decisions to make before you reach the finish line.
By Mike Dullaghan, AIF®
-
Stock Market Today: Great Power Affairs Mesmerize Markets
The U.S. and China are at least talking about talking about tariffs, and investors, traders and speculators are showing a little less fear.
By David Dittman
-
Three Options for Retirees With Concentrated Stock Positions
If a significant chunk of your portfolio is tied up in a single stock, you'll need to make sure it won't disrupt your retirement and legacy goals. Here's how.
By Evan T. Beach, CFP®, AWMA®
-
Four Reasons It May Be Time to Shop for New Insurance
You may be unhappy with your insurance for any number of reasons, so once you've decided to shop, what is appropriate (or inappropriate) timing?
By Karl Susman, CPCU, LUTCF, CIC, CSFP, CFS, CPIA, AAI-M, PLCS
-
Stock Market Today: Stocks Rise on Good Volatility
Investors, traders and speculators continue to process the "known unknown" of global tariff-and-trade war negotiations.
By David Dittman
-
Before You Invest Like a Politician, Consider This Dilemma
As apps that track congressional stock trading become more popular, investors need to take into consideration some caveats.
By Ryan K. Snover, Investment Adviser Representative