ADSK Autodesk Inc

Activist investor Sachem Head Capital Management disclosed a 5.7% stake in Autodesk Inc. and said the company's shares are undervalued.

Autodesk, a maker of design software for artists, architects and engineers, has grown through acquisitions, focusing on cloud, mobile and social media. It has been moving to a subscription-based model.

Sachem Head said it plans to hold talks with the company's management, board and shareholders that may include topics such as cost structure, strategic plans and board composition.

An Autodesk spokesman said, "We have recently learned of Sachem Head's new position in Autodesk. As always, we are open to constructive dialogue with any Autodesk shareholders, large or small."

Autodesk shares, down 3.7% this year, rose 5% to $60.74 in recent after-hours trading Wednesday.

In June, Wedbush downgraded Autodesk, saying the change toward subscriptions could take longer than expected.

On Aug. 27, Autodesk lowered its earnings guidance for the year, citing the shift from perpetual licenses to new subscription types. The company said billings rose 7% for the second quarter ended July 31. Autodesk said total subscriptions rose to 2.39 million and said it was pleased with the progress of its transition.

Autodesk reiterated its financial projections on Sept. 29.

In August, Autodesk agreed to buy SeeControl, a developer of an Internet-of-things cloud service platform. In September, it agreed to purchase Germany-based netfabb, which focuses on industrial additive design and manufacturing.

Sachem Head was founded by Scott Ferguson, who worked at William Ackman's Pershing Square Capital Management.

Write to Josh Beckerman at josh.beckerman@wsj.com

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(END) Dow Jones Newswires

November 04, 2015 18:55 ET (23:55 GMT)

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