Welcome to Extreme Investor Network, where we bring you the latest insights and news on all things finance and investing. Today, we are diving into the world of activist investing with Starboard Value’s recent move in graphics-design firm Autodesk.
Starboard Value, led by CEO Jeff Smith, has made a significant investment in Autodesk, with a stake valued at roughly $500 million. The activist fund has raised serious concerns over Autodesk’s disclosures related to an internal investigation that led to the removal of its chief financial officer.
The probe revealed that executives at Autodesk misled investors about the company’s free cash flow metrics and operating margins by manipulating reporting tied to the company’s contract billing structure. This led to the ouster of the CFO and a 20% slide in Autodesk’s shares following the delayed disclosure of the investigation.
Starboard Value believes that Autodesk can drive actual margin improvement and enhance investor communications to boost its stock performance. The activist is even considering legal action to compel the reopening of Autodesk’s nominating window and delay its annual meeting, scheduled for July 16.
This move by Starboard Value is not the first time Autodesk has faced activist scrutiny. In 2016, the company settled with two activist investors to avoid a proxy contest. Additionally, Autodesk disclosed earlier this year that it is facing probes from the Justice Department and SEC.
Stay tuned to Extreme Investor Network for more updates on this developing story and other top investment opportunities. Don’t miss out on exclusive insights and expert analysis by visiting our website regularly. Let us help you make informed investment decisions and stay ahead of the market trends.