These 5 Stocks Can Crash After Federal Reserve’s Latest Rate Hike

3. Autodesk, Inc. (NASDAQ:ADSK)

Debt-to-Equity Ratio: 3.55

Number of Hedge Fund Holders: 53

Autodesk, Inc. (NASDAQ:ADSK) is a leading global developer of 3D design, engineering, and entertainment software. On September 16, JPMorgan analyst Stephen Tusa slashed his price target on Autodesk, Inc. (NASDAQ:ADSK) to $203 from $267 and downgraded the stock to Neutral from Overweight. The analyst is bearish on the company due to macroeconomic uncertainty.

Autodesk’s (NASDAQ:ADSK) valuation can suffer if the Fed raises interest rates. According to the company’s second-quarter fiscal 2023 balance sheet, Autodesk, Inc. (NASDAQ:ADSK) has total debt of $3.04 billion and its debt-to-equity ratio is estimated at 3.55. If the Fed continues to tighten, Autodesk’s (NASDAQ:ADSK) cash flows can be strained and the stock can crash. As of September 19, the stock is trading at a PE multiple of 80x and has crashed 30% year to date.

At the close of Q2 2022, 53 hedge funds were bullish on Autodesk, Inc. (NASDAQ:ADSK) and held stakes worth $1.41 billion in the company. This is compared to 50 positions in the previous quarter with stakes worth $1.93 billion.

As of June 30, Impax Asset Management is the most prominent investor in Autodesk, Inc. (NASDAQ:ADSK) with stakes worth $221 million. The investment covers 1.07% of Ian Simm’s 13F portfolio.