Allstate Corp Increases Stock Holdings in Workday, Inc. $WDAY

Key Points

• Allstate Corp more than doubled its Workday stake in the fourth quarter, increasing holdings by 118.3% to 17,465 shares valued at about $3.75 million.
• Workday’s latest quarterly results beat expectations, with EPS of $2.66 versus the $2.51 estimate and revenue of $2.54 billion, up 13.5% year over year. The company also raised its full-year outlook, helping support a recent rebound in the stock.
• Institutional ownership remains very high, with 89.81% of shares held by hedge funds and other institutions. At the same time, some insiders have been selling shares, and analyst opinions are mixed despite a consensus rating of Moderate Buy.

Allstate Corp boosted its holdings in shares of Workday, Inc. (NASDAQ:WDAY - Free Report) by 118.3% during the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 17,465 shares of the software maker's stock after purchasing an additional 9,466 shares during the quarter. Allstate Corp's holdings in Workday were worth $3,751,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently bought and sold shares of WDAY. Vanguard Group Inc. increased its holdings in Workday by 14.7% during the 4th quarter. Vanguard Group Inc. now owns 25,009,288 shares of the software maker's stock worth $5,371,495,000 after purchasing an additional 3,210,232 shares during the last quarter. First Eagle Investment Management LLC purchased a new stake in Workday during the 3rd quarter worth approximately $556,252,000. Hotchkis & Wiley Capital Management LLC increased its holdings in Workday by 47.5% during the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 5,842,491 shares of the software maker's stock worth $1,406,463,000 after purchasing an additional 1,882,391 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Workday by 41.5% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 3,761,599 shares of the software maker's stock worth $905,530,000 after purchasing an additional 1,103,421 shares during the last quarter. Finally, Generation Investment Management LLP increased its holdings in Workday by 50.4% during the 3rd quarter. Generation Investment Management LLP now owns 3,087,395 shares of the software maker's stock worth $743,229,000 after purchasing an additional 1,034,589 shares during the last quarter. 89.81% of the stock is currently owned by hedge funds and other institutional investors.

Workday Trading Up 0.4%

NASDAQ:WDAY opened at $124.50 on Thursday. Workday, Inc. has a 12-month low of $110.36 and a 12-month high of $257.09. The firm has a market capitalization of $32.00 billion, a P/E ratio of 38.91, a P/E/G ratio of 1.20 and a beta of 1.04. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.01 and a quick ratio of 1.32. The business has a 50 day simple moving average of $125.42 and a 200 day simple moving average of $166.59.

Workday (NASDAQ:WDAY - Get Free Report) last released its quarterly earnings data on Thursday, May 21st. The software maker reported $2.66 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.51 by $0.15. Workday had a return on equity of 14.75% and a net margin of 8.60%.The business had revenue of $2.54 billion during the quarter, compared to analyst estimates of $2.52 billion. During the same quarter in the previous year, the firm posted $2.23 EPS. The business's revenue for the quarter was up 13.5% compared to the same quarter last year. Equities research analysts predict that Workday, Inc. will post 5.13 EPS for the current year.

Insiders Place Their Bets

In other Workday news, insider Gerrit S. Kazmaier sold 9,356 shares of the business's stock in a transaction on Tuesday, April 7th. The stock was sold at an average price of $128.39, for a total transaction of $1,201,216.84. Following the completion of the transaction, the insider owned 165,074 shares in the company, valued at approximately $21,193,850.86. The trade was a 5.36% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, major shareholder David A. Duffield sold 107,500 shares of the business's stock in a transaction on Tuesday, March 31st. The stock was sold at an average price of $129.76, for a total value of $13,949,200.00. Following the transaction, the insider owned 105,049 shares of the company's stock, valued at $13,631,158.24. This trade represents a 50.58% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 989,814 shares of company stock valued at $131,576,291 in the last quarter. 18.64% of the stock is currently owned by insiders.

Trending Headlines about Workday

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Workday introduced new AI capabilities for Adaptive Planning, including “Adaptive Decision Intelligence,” designed to let finance teams ask questions in natural language, run scenarios, and commit decisions faster. The launch suggests continued AI-driven product innovation that could support longer-term demand. Article title: Workday Introduces Adaptive Decision Intelligence, Bringing Planning Questions, Scenarios, and Decisions Into One AI Experience
• Positive Sentiment: The company also launched new AI tools aimed at easing FP&A workflows, reinforcing the view that Workday can monetize AI by automating time-consuming finance tasks. Article title: Workday launches AI tool aimed at easing FP&A workflows
• Positive Sentiment: Recent coverage highlighted that Workday beat quarterly earnings estimates and raised its full-year margin outlook, which helped fuel a recent rebound in the stock. Article title: Workday Stock Pops on Earnings Results. A Long-Awaited Turnaround Could Finally Be Here.
• Neutral Sentiment: Several market notes pointed to strong analyst upside targets, with average price targets implying meaningful upside from current levels, though these were presented more as valuation commentary than a fresh catalyst. Article title: How Much Upside is Left in Workday (WDAY)? Wall Street Analysts Think 46.84%
• Neutral Sentiment: Bank of America reinstated Workday at Neutral with a $140 price target, saying it remains a high-quality SaaS franchise but faces limited near-term catalysts as growth moderates. That more cautious stance may be capping enthusiasm despite the solid product story. Article title: Workday viewed as high-quality but maturing SaaS franchise with limited near-term catalysts
• Negative Sentiment: BofA also warned that AI could pressure Workday’s per-seat pricing model, raising concerns that new technology may improve products but compress pricing over time. Article title: Workday Serves 65% Of The Fortune 500, But Analyst Warns AI Could Compress Its Per-Seat Pricing Model
• Negative Sentiment: Goldman Sachs lowered its price target on Workday, another sign that some analysts see less upside ahead after the recent rebound. Article title: Workday price target lowered by The Goldman Sachs Group, Inc.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on WDAY. Loop Capital set a $210.00 price target on Workday in a report on Thursday, March 12th. Guggenheim lowered their price target on Workday from $285.00 to $275.00 and set a "buy" rating for the company in a report on Wednesday, February 25th. Oppenheimer reiterated an "outperform" rating and issued a $165.00 price target on shares of Workday in a report on Friday, May 22nd. BMO Capital Markets reiterated an "outperform" rating on shares of Workday in a report on Friday, May 22nd. Finally, The Goldman Sachs Group lowered their price target on Workday from $206.00 to $151.00 and set a "neutral" rating for the company in a report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, fifteen have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Workday currently has an average rating of "Moderate Buy" and an average target price of $185.03.

About Workday

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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