Workiva (NYSE:WK) Rating Lowered to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Workiva from “Strong Buy” to “Hold.” Broader analyst sentiment remains more positive, with a “Moderate Buy” consensus and an average price target of $87.
• Third-quarter revenue rose 17.3% year over year to $262.96 million, slightly exceeding estimates, but earnings per share of $0.72 fell short of the $0.80 consensus.
• Forward guidance is a concern: Workiva’s Q4 and full-year EPS forecasts are below analyst expectations, while its Q4 revenue outlook is also slightly below consensus.

Workiva (NYSE:WK - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "strong-buy" rating to a "hold" rating in a research report issued on Saturday, Wall Street Zen reports.

Other equities research analysts have also recently issued reports about the stock. BTIG Research set a $85.00 target price on shares of Workiva in a research report on Wednesday, September 16th. Stifel Nicolaus set a $95.00 price objective on Workiva in a research report on Thursday, August 27th. UBS Group set a $70.00 price objective on shares of Workiva in a research note on Wednesday, August 5th. Robert W. Baird boosted their price target on shares of Workiva from $95.00 to $105.00 and gave the company an "outperform" rating in a research report on Wednesday, September 16th. Finally, Citigroup reissued a "buy" rating on shares of Workiva in a research report on Thursday, August 6th. Nine research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Workiva has an average rating of "Moderate Buy" and a consensus price target of $87.00.

Workiva Price Performance

Shares of WK stock opened at $72.83 on Friday. Workiva has a one year low of $43.34 and a one year high of $95.00. The business's 50 day simple moving average is $75.83 and its 200 day simple moving average is $63.07. The stock has a market capitalization of $4.09 billion, a PE ratio of 65.03 and a beta of 0.46.

Workiva (NYSE:WK - Get Free Report) last announced its earnings results on Thursday, November 5th. The software maker reported $0.72 earnings per share for the quarter, missing analysts' consensus estimates of $0.80 by ($0.08). Workiva had a net margin of 4.87% and a negative return on equity of 140.17%. The business had revenue of $262.96 million for the quarter, compared to the consensus estimate of $261.37 million. During the same period in the prior year, the business posted $0.55 EPS. Workiva's revenue for the quarter was up 17.3% on a year-over-year basis. As a group, research analysts expect that Workiva will post 1.31 earnings per share for the current year.

Insider Buying and Selling at Workiva

In other Workiva news, EVP Brandon Ziegler sold 6,571 shares of the firm's stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $75.97, for a total transaction of $499,198.87. Following the sale, the executive vice president owned 126,216 shares in the company, valued at $9,588,629.52. This trade represents a 4.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 4.77% of the stock is owned by corporate insiders.

Institutional Trading of Workiva

A number of large investors have recently bought and sold shares of the business. State of Alaska Department of Revenue boosted its holdings in Workiva by 7.3% during the third quarter. State of Alaska Department of Revenue now owns 2,423 shares of the software maker's stock valued at $161,000 after purchasing an additional 164 shares in the last quarter. Knights of Columbus Asset Advisors LLC increased its stake in shares of Workiva by 0.5% during the 3rd quarter. Knights of Columbus Asset Advisors LLC now owns 35,917 shares of the software maker's stock worth $2,391,000 after purchasing an additional 171 shares during the last quarter. Handelsbanken Fonder AB raised its position in shares of Workiva by 1.3% during the 2nd quarter. Handelsbanken Fonder AB now owns 16,095 shares of the software maker's stock valued at $781,000 after buying an additional 200 shares in the last quarter. Farther Finance Advisors LLC boosted its holdings in Workiva by 43.8% in the third quarter. Farther Finance Advisors LLC now owns 732 shares of the software maker's stock valued at $49,000 after acquiring an additional 223 shares in the last quarter. Finally, Arizona State Retirement System grew its stake in shares of Workiva by 1.9% in the second quarter. Arizona State Retirement System now owns 13,953 shares of the software maker's stock worth $677,000 after acquiring an additional 254 shares during the period. Institutional investors and hedge funds own 92.21% of the company's stock.

Key Headlines Impacting Workiva

Here are the key news stories impacting Workiva this week:

• Positive Sentiment: Third-quarter revenue rose 17.3% year over year to $262.96 million, topping analysts’ $261.37 million estimate. Quarterly results
• Neutral Sentiment: Coverage highlighted Workiva’s AI expansion, while noting moderating business tailwinds; the available reports do not quantify the potential financial contribution from AI. Q3 deep dive
• Negative Sentiment: Q3 EPS was $0.72, below the roughly $0.79–$0.80 consensus, despite increasing from $0.55 a year earlier. The earnings shortfall is a likely drag on sentiment. Q3 earnings miss
• Negative Sentiment: Workiva’s Q4 EPS outlook of $0.78–$0.80 is below the $0.92 consensus, and its $275 million–$278 million revenue range is just shy of the $278.1 million estimate. Full-year EPS guidance of $2.80–$2.83 also trails the $2.95 consensus, putting the outlook at the center of investor concern. Why shares are falling

Workiva Company Profile

Workiva Inc NYSE: WK provides cloud-based software designed to help organizations manage reporting, compliance, risk and other complex business processes. Its platform connects financial, operational and environmental, social and governance (ESG) data so teams can collaborate on information used for internal and external reporting.

The company's products support financial reporting, regulatory filings, audit and compliance workflows, investor communications, and sustainability reporting.

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