Why Autodesk Stock Is Sliding Today

Autodesk Inc ADSK shares are trading lower Wednesday after the application software company announced that it will not file its annual financial results within the required time period. The company also provided an update on its previously announced internal investigation.

What Happened: Autodesk said late Tuesday that it’s unable to file its annual report for the year ended Jan. 31, 2024, within the 15-day extension period. Accordingly, the company expects to receive a Nasdaq notice informing the company that it is not in compliance with the timely filing requirement for continued listing under Nasdaq rules.

“The Company intends to take the necessary steps to regain compliance with Nasdaq’s listing rules as soon as practicable,” Autodesk said.

Earlier this month, Autodesk announced that an internal investigation was being conducted by its board’s audit committee after information was brought to the attention of management related to the company’s earnings release in February. The investigation is ongoing and centered around the company’s free cash flow and non-GAAP operating margin practices.

“The subject of the internal investigation remains the same as previously disclosed, and the Company currently does not believe that any of the matters under investigation affect any previously issued financial statements or the information in the Company’s earnings release on February 29, 2024. As of today, the investigation is ongoing and all parties continue to work diligently to complete the investigation,” the company said.

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Is ADSK A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Autodesk‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Autodesk does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Autodesk will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

ADSK Price Action: Autodesk shares were down 5.36% at $216 at the time of writing Wednesday morning, according to Benzinga Pro.

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