Needham & Company LLC Raises Workday (NASDAQ:WDAY) Price Target to $230.00

Key Points

• Needham raised Workday’s price target from $180 to $230 and maintained a “Buy” rating, implying 18.82% upside from the stock’s reported $193.57 price.
• Workday exceeded quarterly expectations, reporting adjusted EPS of $2.75 versus a $2.61 consensus and revenue of $2.65 billion, up 12.8% year over year.
• Analyst sentiment remains mixed: the consensus rating is “Hold” with an average price target of $194.81, while projected subscription-revenue growth near 11% and significant insider selling raise valuation and sentiment concerns.

Workday (NASDAQ:WDAY - Get Free Report) had its price target raised by investment analysts at Needham & Company LLC from $180.00 to $230.00 in a report released on Friday,Benzinga reports. The firm presently has a "buy" rating on the software maker's stock. Needham & Company LLC's target price suggests a potential upside of 18.82% from the stock's current price.

A number of other research analysts have also weighed in on the stock. Wall Street Zen lowered shares of Workday from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. Wolfe Research reissued an "outperform" rating and set a $160.00 price target on shares of Workday in a research report on Friday, May 22nd. CLSA began coverage on shares of Workday in a report on Monday, July 20th. They issued an "underperform" rating and a $92.00 target price on the stock. Bank of America raised their price target on shares of Workday from $140.00 to $205.00 and gave the stock a "neutral" rating in a report on Wednesday, August 19th. Finally, William Blair reiterated an "outperform" rating on shares of Workday in a research report on Friday. Twenty equities research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $194.81.

Workday Stock Up 1.5%

WDAY stock opened at $193.57 on Friday. The stock has a market capitalization of $47.81 billion, a P/E ratio of 60.49, a P/E/G ratio of 2.03 and a beta of 1.08. Workday has a 52 week low of $110.36 and a 52 week high of $249.85. The firm has a 50-day simple moving average of $155.95 and a 200-day simple moving average of $140.36. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.30.

Workday (NASDAQ:WDAY - Get Free Report) last posted its quarterly earnings data on Thursday, August 27th. The software maker reported $2.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.61 by $0.14. Workday had a return on equity of 14.75% and a net margin of 8.60%.The company had revenue of $2.65 billion for the quarter, compared to analysts' expectations of $2.64 billion. During the same period in the previous year, the firm posted $2.21 EPS. Workday's revenue was up 12.8% compared to the same quarter last year. Equities analysts forecast that Workday will post 5.38 earnings per share for the current fiscal year.

Insider Transactions at Workday

In other Workday news, insider Robert Enslin sold 5,374 shares of the business's stock in a transaction that occurred on Sunday, July 5th. The stock was sold at an average price of $134.90, for a total value of $724,952.60. Following the sale, the insider owned 239,469 shares of the company's stock, valued at $32,304,368.10. The trade was a 2.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Mark S. Garfield sold 918 shares of the company's stock in a transaction on Friday, July 10th. The stock was sold at an average price of $142.19, for a total value of $130,530.42. Following the transaction, the chief accounting officer owned 73,718 shares in the company, valued at $10,481,962.42. This trade represents a 1.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 875,020 shares of company stock worth $113,938,503 in the last three months. Company insiders own 18.64% of the company's stock.

Hedge Funds Weigh In On Workday

Hedge funds and other institutional investors have recently bought and sold shares of the company. California State Teachers Retirement System increased its stake in Workday by 11,770.8% during the second quarter. California State Teachers Retirement System now owns 36,907,426 shares of the software maker's stock worth $4,518,207,000 after purchasing an additional 36,596,516 shares during the period. Paralel Advisors LLC purchased a new position in shares of Workday in the second quarter valued at approximately $2,178,000. Wedmont Private Capital boosted its stake in shares of Workday by 25.9% in the second quarter. Wedmont Private Capital now owns 2,751 shares of the software maker's stock valued at $337,000 after purchasing an additional 566 shares during the period. Kintra Wealth LLC acquired a new position in shares of Workday in the second quarter valued at approximately $499,000. Finally, Figure 8 Investment Strategies LLC grew its holdings in shares of Workday by 84.2% in the second quarter. Figure 8 Investment Strategies LLC now owns 6,571 shares of the software maker's stock valued at $804,000 after purchasing an additional 3,003 shares in the last quarter. 89.81% of the stock is currently owned by hedge funds and other institutional investors.

More Workday News

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Workday reported fiscal Q2 adjusted EPS of $2.75, above the roughly $2.61–$2.62 consensus, while revenue reached $2.649 billion, slightly exceeding estimates and increasing 12.8% year over year. Workday Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Subscription revenue climbed 13.9% to $2.471 billion. Management also said AI-related offerings represented more than 25% of new contract value, reinforcing the company’s positioning in enterprise AI for HR, finance and IT. Workday Fiscal 2027 Second-Quarter Results
• Positive Sentiment: Profitability was a major strength: net income reportedly rose to $632 million from $228 million a year earlier, while operating profit increased 26.2%. Workday also authorized an additional $4 billion share repurchase, which could support per-share results and signal confidence in cash generation. Workday Reports Higher Profit and Revenue
• Positive Sentiment: Canaccord Genuity raised its price target to $225, adding to bullish sentiment following the earnings beat. Canaccord Raises Workday Price Target
• Neutral Sentiment: Management’s outlook broadly met expectations and targets at least two points of non-GAAP margin expansion, but investors are watching whether AI adoption can offset slower growth in the coming years. Workday Signals Future Growth and Margin Targets
• Negative Sentiment: Workday’s projected subscription-revenue growth near 11% for fiscal 2028 implies continued deceleration from current levels, raising valuation concerns for a stock trading at a premium earnings multiple. Workday Outlook Despite AI Demand
• Negative Sentiment: Recent insider activity was heavily weighted toward selling, including substantial sales by founder David Duffield. While such transactions may be planned, they can weigh on investor sentiment.

Workday Company Profile

Workday, Inc NASDAQ: WDAY is a provider of cloud-based enterprise applications focused on human capital management (HCM) and financial management. Founded in 2005 by Dave Duffield and Aneel Bhusri following their tenure at PeopleSoft, the company develops software-as-a-service solutions that help organizations manage workforce and financial processes in a unified, cloud-native environment. Workday's platform emphasizes continuous updates, data security, and a configurable architecture aimed at large and mid-sized enterprises.

The company's product portfolio centers on Workday Human Capital Management and Workday Financial Management, with additional offerings for payroll, talent management, workforce planning and analytics.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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