On September 29, 2023, Lorrie Norrington, a director at Autodesk Inc (ADSK, Financial), sold 2,148 shares of the company. This move is part of a trend observed over the past year, where the insider has sold a total of 2,148 shares and purchased none.
Autodesk Inc is a leading software company that provides a diverse suite of software products for the architecture, engineering, construction, manufacturing, and media industries. Its software enables design, drafting, and the creation of 3D visualizations, and it is used across a wide range of industries, from the construction of buildings and infrastructure to the design of consumer products.
Lorrie Norrington is a seasoned executive with a wealth of experience in the technology sector. She has held various leadership roles at companies such as eBay, Intuit, and General Electric. Her expertise in operational strategy and customer experience has been instrumental in Autodesk's growth and success.
The insider's recent sell-off raises questions about the company's current valuation and future prospects. To understand this better, let's delve into the company's insider trading history and valuation metrics.
The insider transaction history for Autodesk Inc shows a clear trend of insider selling. Over the past year, there have been 27 insider sells and no insider buys. This could indicate that insiders believe the stock is currently overvalued, prompting them to sell their shares.
On the day of the insider's recent sell, Autodesk Inc's shares were trading at $209.71, giving the company a market cap of $44.68 billion. The price-earnings ratio stood at 51.73, higher than the industry median of 27.45 but lower than the company's historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, Autodesk Inc is modestly undervalued. The stock's price-to-GF-Value ratio is 0.79, suggesting that it is trading below its intrinsic value.
In conclusion, while the insider's recent sell-off might raise some eyebrows, the company's valuation metrics suggest that Autodesk Inc's stock is still a good buy. However, investors should keep a close eye on the company's insider trading activity as it could provide valuable insights into the company's future prospects.
