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NEW YORK - Starboard Value LP, a major shareholder of Autodesk, Inc. (NASDAQ: ADSK), a software giant with a market capitalization of $58.2 billion and impressive gross profit margins of 92%, has announced its intention to nominate three new candidates for election to the company’s board of directors at the upcoming 2025 annual meeting. According to InvestingPro data, the company maintains strong profitability metrics despite trading at elevated valuation multiples. Starboard, an investment adviser with a significant stake valued at over $500 million, is advocating for change and improved accountability within Autodesk’s board.
The investment firm plans to file a preliminary proxy statement alongside a WHITE universal proxy card with the Securities and Exchange Commission (SEC) to solicit votes for their nominees: Geoff Ribar, Christie Simons, and Jeff Smith. This move comes as Starboard expresses concerns about Autodesk’s response to Total Shareholder Return (TSR) performance and targets set during an investor day, suggesting a need for a refreshed perspective on the board. Recent InvestingPro analysis shows the company achieved 11.5% revenue growth in the last twelve months, while 18 analysts have revised their earnings estimates upward for the upcoming period.
As of March 25, 2025, Starboard and its affiliates hold a collective 2,000,000 shares of Autodesk’s common stock. The participants in this proxy solicitation include various entities within the Starboard group, as well as individuals Jeffrey C. Smith, Peter A. Feld, Geoff Ribar, and Anna Christine Simons, though Ribar and Simons do not personally own shares.
Starboard’s action emphasizes their belief in the potential for value creation at Autodesk through strategic board appointments. The firm’s approach to investment involves active engagement with management teams and boards to unlock shareholder value.
The proxy materials, which will provide detailed information and will be available to all shareholders at no charge on the SEC’s website, are an essential component of the solicitation process. Starboard advises shareholders to review these materials once they become available to understand the full context of their recommendations.
This initiative is part of Starboard’s broader strategy to influence company policies and direction by proposing alternative board members who align with their vision for the company’s future. The outcome of the upcoming annual meeting will determine whether Starboard’s nominees will be successful in joining Autodesk’s board and influencing its governance. With an InvestingPro Financial Health score rated as "GOOD" and robust operational metrics, investors can access comprehensive analysis and 13 additional ProTips through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
The information for this article is based on a press release statement.
In other recent news, Autodesk reported an 11.6% year-over-year revenue growth for Q4 FY 2025, with the Architecture, Engineering, and Construction segment showing a notable 15.2% increase. The company also announced a restructuring program, including a 9% reduction in force, aimed at enhancing profitability and optimizing strategies. Autodesk has projected an 8-9% constant currency organic revenue growth for FY 2026, which is below previous market forecasts, but the restructuring is expected to improve profitability. Analysts have reacted to these developments with mixed assessments. Stifel adjusted its price target for Autodesk to $350, maintaining a Buy rating, while UBS raised its target to $370, also keeping a Buy rating. Berenberg reiterated a Hold rating with a $299 target, citing the need for new mid-term targets. Additionally, Starboard Value LP, an investment firm, announced plans to nominate directors at Autodesk’s 2025 annual meeting, citing the need for board changes to improve performance. Autodesk has addressed this by emphasizing its commitment to shareholder interests and ongoing strategic initiatives.
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