Advent International L.P. Has $67.44 Million Stock Position in Workday, Inc. $WDAY

Key Points

• Advent International L.P. raised its stake in Workday by 6.2% to 280,150 shares, a position valued at about $67.44 million that represents 1.4% of Advent’s portfolio and is its 12th largest holding.
• Workday beat quarterly expectations with EPS of $2.47 (vs. $2.32 est.) and revenue of $2.53 billion (+14.5% YoY), and analysts maintain a consensus "Moderate Buy" with an average target price of $203 despite several recent price cuts.
• Significant insider selling: founder David A. Duffield sold 107,500 shares for roughly $14.45 million, insiders sold about 610,796 shares (~$107M) last quarter, and insiders now own 19.31% of the company.

Advent International L.P. lifted its stake in shares of Workday, Inc. (NASDAQ:WDAY - Free Report) by 6.2% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 280,150 shares of the software maker's stock after purchasing an additional 16,300 shares during the quarter. Workday comprises 1.4% of Advent International L.P.'s investment portfolio, making the stock its 12th biggest holding. Advent International L.P. owned about 0.10% of Workday worth $67,441,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors also recently made changes to their positions in WDAY. Rakuten Securities Inc. acquired a new stake in Workday in the second quarter valued at approximately $25,000. Berbice Capital Management LLC increased its holdings in shares of Workday by 136.4% during the second quarter. Berbice Capital Management LLC now owns 130 shares of the software maker's stock valued at $31,000 after acquiring an additional 75 shares in the last quarter. Root Financial Partners LLC acquired a new position in shares of Workday during the third quarter worth approximately $40,000. Twin Peaks Wealth Advisors LLC acquired a new position in shares of Workday during the second quarter worth approximately $41,000. Finally, Geneos Wealth Management Inc. lifted its holdings in shares of Workday by 211.7% in the 1st quarter. Geneos Wealth Management Inc. now owns 187 shares of the software maker's stock worth $44,000 after purchasing an additional 127 shares in the last quarter. 89.81% of the stock is currently owned by institutional investors and hedge funds.

Workday Trading Down 0.8%

Shares of Workday stock opened at $133.09 on Friday. The firm has a market cap of $35.00 billion, a PE ratio of 51.59, a P/E/G ratio of 1.29 and a beta of 1.16. Workday, Inc. has a 1 year low of $117.76 and a 1 year high of $276.00. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.32 and a quick ratio of 1.83. The stock has a fifty day moving average price of $164.66 and a 200-day moving average price of $205.99.

Workday (NASDAQ:WDAY - Get Free Report) last posted its quarterly earnings results on Tuesday, February 24th. The software maker reported $2.47 earnings per share for the quarter, beating the consensus estimate of $2.32 by $0.15. Workday had a net margin of 7.26% and a return on equity of 13.37%. The company had revenue of $2.53 billion during the quarter, compared to analyst estimates of $2.52 billion. During the same quarter in the prior year, the business earned $1.92 earnings per share. The firm's revenue for the quarter was up 14.5% on a year-over-year basis. Equities research analysts anticipate that Workday, Inc. will post 2.63 EPS for the current year.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on WDAY. UBS Group reduced their price target on shares of Workday from $170.00 to $130.00 and set a "neutral" rating for the company in a research report on Wednesday, February 25th. Needham & Company LLC reaffirmed a "buy" rating and issued a $300.00 price objective on shares of Workday in a research note on Wednesday, February 25th. Citigroup reduced their price objective on shares of Workday from $247.00 to $148.00 and set a "neutral" rating for the company in a report on Thursday, February 26th. KeyCorp decreased their target price on shares of Workday from $260.00 to $155.00 and set an "overweight" rating for the company in a research report on Wednesday, February 25th. Finally, Mizuho lowered their target price on shares of Workday from $275.00 to $210.00 and set an "outperform" rating on the stock in a report on Wednesday, February 25th. Twenty analysts have rated the stock with a Buy rating and fifteen have issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $203.00.

Insider Activity at Workday

In other news, major shareholder David A. Duffield sold 107,500 shares of the stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $134.40, for a total transaction of $14,448,000.00. Following the completion of the transaction, the insider directly owned 105,049 shares of the company's stock, valued at $14,118,585.60. This represents a 50.58% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Gerrit S. Kazmaier sold 6,547 shares of Workday stock in a transaction that occurred on Friday, December 19th. The stock was sold at an average price of $218.77, for a total transaction of $1,432,287.19. Following the completion of the sale, the insider directly owned 111,353 shares in the company, valued at $24,360,695.81. This trade represents a 5.55% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 610,796 shares of company stock valued at $107,013,566 over the last quarter. 19.31% of the stock is currently owned by insiders.

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.

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