Autodesk stock on Monday rebounded from a sharp sell-off after the design software firm apparently ruled out a potential bid for industry peer PTC.
Autodesk stock plunged last week after Bloomberg reported that the company was considering a cash-and-stock deal to buy engineering software firm PTC, which has a market value of about $23 billion.
But on Monday, Autodesk stock rallied after the company published a business update with the Securities and Exchange Commission that appeared to rule out a big acquisition.
In the regulatory filing, Autodesk said it is focused on organic growth with "targeted and tuck-in acquisitions." It also is looking to improve profit margins and continue its share repurchase program, the filing said.
Further, Bloomberg reported Monday that Autodesk is no longer considering an acquisition of PTC.
On the stock market today, Autodesk stock jumped 5.1% to close at 294.55. Last week, Autodesk stock fell 11.5% to 280.39.
Meanwhile, PTC stock fell 1.3% to 191.08 on Monday. Last week, PTC stock surged 10% to 193.51.
Rosenblatt Securities analyst Blair Abernethy reiterated his buy rating on Autodesk stock with a price target of 345. Autodesk's SEC filing "indicates no current interest in PTC," Abernethy said in a client note.
Autodesk makes design software for industries such as architecture, construction, manufacturing and media.
Also, Autodesk stock is on the IBD Tech Leaders list.
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