Steve Mandel Buys 5 Percent Stake in 3D Printing Company

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Nov 06, 2014
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Lone Pine Capital manager Steve Mandel (Trades, Portfolio) has acquired a stake in Autodesk Inc. (ADSK, Financial) consisting of 11,961,827 shares on Oct. 24, GuruFocus Real Time Picks reports. The holding represents 5.3% of the company’s shares outstanding.

Autodesk Inc. is a maker of 3D printing design software used in a variety of industries, such as entertainment, manufacturing, engineering and others. The company introduced its 3D printing software that connects to any hardware, Spark, earlier this year.

In the second quarter, Autodesk had record revenue of $637 million, up 13% from the same quarter a year ago, as total billings increased 27% and total subscriptions due to strong demand. Net income increased to $31.3 million from $61.7 million.

The company’s operating results and positive business outlook prompted it to increase its full-year guidance to revenue growth between 7 and 9%, billings growth between 10 to 12%, and a GAAP operating margin of 4 to 5%. On Oct. 1, it confirmed its guidance and announced plans to expand and transition to a recurring subscription-based business model for its software.

Autodesk’s long-term revenue and growth history:

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The company’s per-share price, which closed at $58.32 per share on Wednesday, is close to a 10-year high. Its P/E ratio is also near a three-year high at 79.78, and its P/S ratio is close to a five-year high at 5.7. The company has a P/B ratio is 5.8.

Several other gurus initiated stakes in Autodesk in the second quarter: Louis Moore Bacon (Trades, Portfolio), Jim Simons (Trades, Portfolio) and Pioneer Investments (Trades, Portfolio).

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