DA Davidson Forecasts Strong Price Appreciation for Workday (NASDAQ:WDAY) Stock

Key Points

• DA Davidson has increased its price target for Workday (NASDAQ: WDAY) from $225 to $260, suggesting an 11.77% potential upside from its current stock price.
• Despite the positive outlook from DA Davidson, other analysts have decreased their price targets for Workday, with Loop Capital lowering theirs from $285 to $250.
• Workday's most recent earnings report showed a quarter revenue of $2.35 billion, exceeding analyst expectations, and an EPS of $2.21, beating the consensus estimate by $0.12.

Workday (NASDAQ:WDAY - Free Report) had its price target raised by DA Davidson from $225.00 to $260.00 in a report published on Friday morning,Benzinga reports. DA Davidson currently has a neutral rating on the software maker's stock.

WDAY has been the topic of several other research reports. Loop Capital dropped their price objective on shares of Workday from $285.00 to $250.00 and set a "hold" rating on the stock in a report on Friday, May 23rd. Needham & Company LLC reissued a "buy" rating and set a $300.00 price objective on shares of Workday in a report on Wednesday, September 17th. Oppenheimer decreased their price target on Workday from $300.00 to $270.00 and set an "outperform" rating on the stock in a research report on Friday, August 22nd. Wall Street Zen raised shares of Workday from a "hold" rating to a "buy" rating in a research note on Sunday, July 13th. Finally, Deutsche Bank Aktiengesellschaft decreased their price target on Workday from $330.00 to $280.00 and set a "buy" rating on the stock in a report on Friday, August 22nd. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $287.83.

Workday Stock Performance

Shares of NASDAQ WDAY traded up $9.04 during trading hours on Friday, hitting $242.66. 4,621,819 shares of the stock were exchanged, compared to its average volume of 2,610,111. Workday has a one year low of $205.33 and a one year high of $294.00. The company's 50 day moving average is $228.66 and its 200 day moving average is $237.73. The company has a debt-to-equity ratio of 0.33, a current ratio of 2.10 and a quick ratio of 2.10. The firm has a market capitalization of $64.79 billion, a P/E ratio of 112.34, a P/E/G ratio of 3.08 and a beta of 1.12.

Workday (NASDAQ:WDAY - Get Free Report) last released its earnings results on Thursday, August 21st. The software maker reported $2.21 earnings per share for the quarter, topping analysts' consensus estimates of $2.09 by $0.12. The firm had revenue of $2.35 billion during the quarter, compared to analyst estimates of $2.34 billion. Workday had a net margin of 6.51% and a return on equity of 9.74%. The business's revenue was up 12.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.75 EPS. Workday has set its FY 2026 guidance at EPS. Q3 2026 guidance at EPS. On average, research analysts expect that Workday will post 2.63 EPS for the current year.

Insider Buying and Selling

In other news, CFO Zane Rowe sold 6,000 shares of the company's stock in a transaction dated Tuesday, July 8th. The stock was sold at an average price of $239.59, for a total transaction of $1,437,540.00. Following the completion of the transaction, the chief financial officer directly owned 178,418 shares of the company's stock, valued at $42,747,168.62. This represents a 3.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Mark S. Garfield sold 451 shares of Workday stock in a transaction that occurred on Thursday, July 10th. The shares were sold at an average price of $234.86, for a total value of $105,921.86. Following the completion of the sale, the chief accounting officer directly owned 42,977 shares in the company, valued at approximately $10,093,578.22. This represents a 1.04% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 328,024 shares of company stock valued at $76,664,934. Corporate insiders own 20.00% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its stake in shares of Workday by 2.5% during the 2nd quarter. Vanguard Group Inc. now owns 21,114,184 shares of the software maker's stock worth $5,067,404,000 after buying an additional 515,529 shares during the last quarter. State Street Corp boosted its position in Workday by 3.3% during the second quarter. State Street Corp now owns 9,600,516 shares of the software maker's stock valued at $2,304,124,000 after purchasing an additional 303,713 shares during the last quarter. Geode Capital Management LLC grew its stake in Workday by 2.9% in the second quarter. Geode Capital Management LLC now owns 4,952,938 shares of the software maker's stock valued at $1,183,112,000 after purchasing an additional 140,042 shares in the last quarter. T. Rowe Price Investment Management Inc. increased its position in shares of Workday by 47.5% during the 1st quarter. T. Rowe Price Investment Management Inc. now owns 3,764,598 shares of the software maker's stock worth $879,147,000 after purchasing an additional 1,211,659 shares during the last quarter. Finally, The Manufacturers Life Insurance Company boosted its holdings in shares of Workday by 0.4% in the 1st quarter. The Manufacturers Life Insurance Company now owns 3,736,609 shares of the software maker's stock valued at $872,610,000 after buying an additional 14,354 shares during the last quarter. Institutional investors own 89.81% of the company's stock.

About Workday

Workday, Inc provides enterprise cloud applications in the United States and internationally. Its applications help its customers to plan, execute, analyze, and extend to other applications and environments to manage their business and operations. The company offers a suite of financial management applications to maintain accounting information in the general ledger; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; enhance financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations.