One of Autodesk’s leading executives, Amarpreet Hanspal, senior vice president, has sold 39,736 shares of company stock valued at $3,020,333.36.USD. The transaction took place on Tuesday after Christmas, 27 December 2016. The shares were sold at prices between $76.0092 and $76.4735, as revealed in a US Securities Exchange Commission filing available here.
First Subscription Only Quarter Behind Autodesk
Autodesk’s financial third quarter earnings report was on 29 November 2016. There were two noteworthy items at this time. Firstly, total insider trading by volume for Autodesk was twice as high as the three previous quarters. Secondly, Autodesk’s Q3-17 was the first quarter the company only sold software by subscription. Perpetual software licenses are officially over at Autodesk. “We are pleased with our results for the quarter, which were driven by strong growth in product subscription,” said Carl Bass, Autodesk president, and CEO.
Autodesk’s transition from perpetual to a subscription-only licensing model hasn’t come without some teething issues. However, the company continues to transition its existing customers and gain new ones on the new model. In Q3-16, the company reported 861,000 new subscriptions, a net increase of 168,000 (or 24% increase) from the prior quarter—a healthy increase.
Hanspal’s Opportune Timing
Hanspal’s sell isn’t just reflective of steady progress at Autodesk, the stock sell price was just over the average analyst 12-month target price of $75.08. Autodesk’s (ADSK) stock price this morning at the time of this writing was $77.51. When stocks reach the targets analysts set for them some form of reset or correction is in order. Analysts either adjust up with a higher target price or downgrade on valuation.
Determining this takes a careful look at the business’s fundamentals and its model. Autodesk has crossed a significant milestone on 29 November 2016, the completion of its first quarter under the model of its future of selling its software.