15 Stocks Targeted By Activist Hedge Funds

6. Autodesk, Inc. (NASDAQ:ADSK)

Company Market Cap as of December 31: $63.55 Billion

Number of Hedge Fund Holders: 70

Autodesk, Inc. (NASDAQ:ADSK) is a technology company that provides worldwide 3D design, engineering, and entertainment technology solutions. The company offers AutoCAD Civil 3D, surveying, design, analysis, and documentation solutions. While the stock was up by 26% in 2024, it was the subject of an activist campaign by Starboard Value.

The activist hedge fund sent a letter to the company’s board demanding answers on what was behind an internal financial probe that sparked federal investigations. The hedge fund also wants answers on misrepresentation of key financial metrics. Starboard Value believes that Autodesk, Inc. (NASDAQ:ADSK) hasn’t gone far enough in addressing shareholder concerns, which caused its stock to drop 20% when it was announced, and that more executives than the company’s CFO were involved in the attempt to deceive investors.

To increase profitability and raise the share price, the activist hedge fund is currently looking to alter Autodesk’s management, operations, and financial accounting approach. It has prepared a thorough report outlining how this could be accomplished, along with a press release and letters to the board and other shareholders.

Additionally, Starboard Value thinks that Autodesk, Inc. (NASDAQ:ADSK) spends too much on marketing and sales in comparison to its competitors. Consequently, it should focus on real operating margin improvements to boost investor confidence.

Parnassus Mid Cap Fund stated the following regarding Autodesk, Inc. (NASDAQ:ADSK) in its Q3 2024 investor letter:

“In Software, we added Autodesk, Inc. (NASDAQ:ADSK) and Cloudflare while exiting Bill.com. We believe Autodesk’s dominant position in architecture, engineering and construction software allows it to increase margins and offer attractive revenue growth. Autodesk is a market-leading vertical software company with the ability to meaningfully improve its margins, while its revenue growth should accelerate as it completes its sales channel re-alignment.”