Autodesk (ADSK): Today's Weak On High Volume Stock
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Autodesk as such a stock due to the following factors:
- ADSK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $220.7 million.
- ADSK has traded 3.0 million shares today.
- ADSK is trading at 13.30 times the normal volume for the stock at this time of day.
- ADSK is trading at a new low 6.03% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on ADSK:
Autodesk, Inc. operates as a design software and services company worldwide. Currently there are 8 analysts that rate Autodesk a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for Autodesk has been 4.1 million shares per day over the past 30 days. Autodesk has a market cap of $13.9 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.91 and a short float of 3.2% with 1.94 days to cover. Shares are up 3.9% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Autodesk as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
Highlights from the ratings report include:
- After a year of stock price fluctuations, the net result is that ADSK's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- ADSK's debt-to-equity ratio of 0.78 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that ADSK's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.12 is high and demonstrates strong liquidity.
- Despite the weak revenue results, ADSK has outperformed against the industry average of 17.3%. Since the same quarter one year prior, revenues slightly dropped by 4.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Software industry and the overall market, AUTODESK INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $77.20 million or 19.75% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, AUTODESK INC has marginally lower results.
- You can view the full Autodesk Ratings Report.
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