Evercore ISI Forecasts Strong Price Appreciation for Workday (NASDAQ:WDAY) Stock

Key Points

• Evercore ISI has increased its price target for Workday's stock from $275 to $300, suggesting a potential upside of 26.09% from the previous close.
• Workday's shares recently traded up by 8.6%, reaching $237.92, with a market capitalization of $63.53 billion and a price-to-earnings (P/E) ratio of 110.15.
• Analysts have mixed ratings on Workday, with two analysts rating it as Strong Buy, while the average rating is a "Moderate Buy" with a consensus target price of $287.75.

Workday (NASDAQ:WDAY - Free Report) had its target price boosted by Evercore ISI from $275.00 to $300.00 in a research report report published on Wednesday morning,Benzinga reports. They currently have an outperform rating on the software maker's stock.

Other research analysts have also recently issued research reports about the company. Canaccord Genuity Group decreased their target price on Workday from $330.00 to $275.00 and set a "buy" rating on the stock in a research report on Friday, August 22nd. Cantor Fitzgerald reiterated an "overweight" rating and issued a $265.00 target price on shares of Workday in a research report on Wednesday. Sanford C. Bernstein reissued an "outperform" rating and set a $304.00 price target on shares of Workday in a research note on Friday, August 22nd. Wells Fargo & Company cut their price target on Workday from $325.00 to $300.00 and set an "overweight" rating on the stock in a research note on Monday, August 18th. Finally, Needham & Company LLC reissued a "buy" rating and set a $300.00 price target on shares of Workday in a research note on Wednesday. Two analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $287.48.

Workday Price Performance

Workday stock traded down $1.38 during midday trading on Wednesday, reaching $233.50. The company's stock had a trading volume of 4,374,058 shares, compared to its average volume of 3,868,489. Workday has a 52 week low of $205.33 and a 52 week high of $294.00. The company has a current ratio of 2.10, a quick ratio of 2.10 and a debt-to-equity ratio of 0.33. The business has a 50-day moving average price of $228.46 and a 200-day moving average price of $238.13. The stock has a market cap of $62.34 billion, a PE ratio of 108.10, a price-to-earnings-growth ratio of 3.25 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 (EPS) for the quarter, beating analysts' consensus estimates of $2.09 by $0.12. Workday had a return on equity of 9.74% and a net margin of 6.51%.The firm had revenue of $2.35 billion for the quarter, compared to analysts' expectations of $2.34 billion. During the same quarter in the previous year, the business posted $1.75 earnings per share. The business's revenue for the quarter was up 12.6% on a year-over-year basis. Workday has set its FY 2026 guidance at EPS. Q3 2026 guidance at EPS. On average, sell-side analysts predict that Workday will post 2.63 EPS for the current year.

Insider Buying and Selling

In related news, CFO Zane Rowe sold 6,000 shares of Workday stock in a transaction that occurred on Tuesday, July 8th. The stock was sold at an average price of $239.59, for a total value of $1,437,540.00. Following the transaction, the chief financial officer directly owned 178,418 shares of the company's stock, valued at $42,747,168.62. The trade was a 3.25% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Carl M. Eschenbach sold 6,250 shares of Workday stock in a transaction that occurred on Tuesday, July 1st. The stock was sold at an average price of $239.43, for a total value of $1,496,437.50. Following the completion of the transaction, the chief executive officer directly owned 1,472 shares in the company, valued at approximately $352,440.96. This represents a 80.94% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 326,864 shares of company stock valued at $76,391,858 over the last 90 days. 19.31% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Workday

Several institutional investors have recently added to or reduced their stakes in WDAY. Rakuten Securities Inc. acquired a new position in Workday in the second quarter valued at approximately $25,000. Cornerstone Planning Group LLC lifted its stake in Workday by 76.1% in the first quarter. Cornerstone Planning Group LLC now owns 125 shares of the software maker's stock valued at $28,000 after buying an additional 54 shares during the period. Dagco Inc. acquired a new position in Workday in the first quarter valued at approximately $31,000. Berbice Capital Management LLC lifted its stake in Workday by 136.4% in the second quarter. Berbice Capital Management LLC now owns 130 shares of the software maker's stock valued at $31,000 after buying an additional 75 shares during the period. Finally, Farmers & Merchants Investments Inc. acquired a new position in Workday in the first quarter valued at approximately $32,000. 89.81% of the stock is owned by institutional investors and hedge funds.

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.