3G Capital Partners LP Invests $3.50 Million in Workday, Inc. $WDAY

Key Points

• 3G Capital Partners LP has acquired a new stake in Workday, Inc. by purchasing 15,000 shares, valued at approximately $3.5 million, making it the firm's 14th largest holding.
• Major shareholder David A. Duffield sold 73,971 shares at an average price of $238.66, which represents a 41.80% decrease in his position.
• Analysts have set varied price targets for Workday, with DA Davidson increasing their target to $250, while BMO Capital Markets reduced theirs to $285, reflecting mixed sentiments towards the stock.

3G Capital Partners LP bought a new stake in Workday, Inc. (NASDAQ:WDAY - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 15,000 shares of the software maker's stock, valued at approximately $3,503,000. Workday accounts for approximately 1.0% of 3G Capital Partners LP's portfolio, making the stock its 14th biggest position.

A number of other institutional investors also recently bought and sold shares of WDAY. Brighton Jones LLC lifted its holdings in Workday by 230.2% in the fourth quarter. Brighton Jones LLC now owns 4,005 shares of the software maker's stock valued at $1,033,000 after acquiring an additional 2,792 shares during the period. Bank Pictet & Cie Europe AG lifted its holdings in Workday by 24.0% in the fourth quarter. Bank Pictet & Cie Europe AG now owns 3,075 shares of the software maker's stock valued at $793,000 after acquiring an additional 595 shares during the period. Aptus Capital Advisors LLC bought a new position in Workday in the fourth quarter valued at about $235,000. Ameriprise Financial Inc. lifted its holdings in Workday by 12.6% in the fourth quarter. Ameriprise Financial Inc. now owns 273,927 shares of the software maker's stock valued at $70,689,000 after acquiring an additional 30,697 shares during the period. Finally, BIP Wealth LLC raised its stake in shares of Workday by 4.6% in the fourth quarter. BIP Wealth LLC now owns 1,516 shares of the software maker's stock worth $391,000 after buying an additional 66 shares during the period. Institutional investors own 89.81% of the company's stock.

Workday Trading Down 1.0%

WDAY traded down $2.30 during trading hours on Thursday, reaching $231.13. 2,226,795 shares of the company's stock traded hands, compared to its average volume of 3,924,129. The firm has a 50-day moving average price of $230.64 and a 200 day moving average price of $240.41. Workday, Inc. has a 52-week low of $205.33 and a 52-week high of $294.00. The company has a quick ratio of 2.10, a current ratio of 2.10 and a debt-to-equity ratio of 0.33. The firm has a market capitalization of $61.71 billion, a PE ratio of 107.01, a PEG ratio of 3.25 and a beta of 1.12.

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

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. Deutsche Bank Aktiengesellschaft decreased their price objective on Workday from $330.00 to $280.00 and set a "buy" rating on the stock in a research note on Friday, August 22nd. Oppenheimer decreased their price objective on Workday from $300.00 to $270.00 and set an "outperform" rating on the stock in a research note on Friday, August 22nd. Westpark Capital raised their price objective on Workday from $315.00 to $328.00 and gave the stock a "buy" rating in a research note on Friday, May 23rd. Guggenheim reaffirmed a "neutral" rating on shares of Workday in a research note on Friday, August 22nd. Finally, KeyCorp decreased their price objective on Workday from $325.00 to $285.00 and set an "overweight" rating on the stock in a research note on Friday, August 22nd. Two research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $286.81.

Insider Buying and Selling

In related news, major shareholder David A. Duffield sold 73,971 shares of the company's stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $238.66, for a total transaction of $17,653,918.86. Following the transaction, the insider directly owned 102,997 shares of the company's stock, valued at $24,581,264.02. This represents a 41.80% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Carl M. Eschenbach sold 6,250 shares of the company's stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $239.43, for a total value of $1,496,437.50. Following the transaction, the chief executive officer directly owned 1,472 shares in the company, valued at $352,440.96. This represents a 80.94% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 318,380 shares of company stock valued at $76,586,604. 19.31% of the stock is currently owned by insiders.

Workday Company Profile

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.