Arrowstreet Capital Limited Partnership Buys 252,341 Shares of Workday, Inc. $WDAY

Key Points

• Arrowstreet Capital increased its Workday stake by 22.8% in the fourth quarter, buying 252,341 additional shares and bringing its holdings to 1.36 million shares worth about $292.1 million.
• Workday reported better-than-expected quarterly results, posting EPS of $2.66 versus the $2.51 estimate and revenue of $2.54 billion, up 13.5% year over year.
• Analysts remain mixed but mostly constructive: Workday has a Moderate Buy consensus rating with an average price target of $185.03, even as some firms cut targets or downgraded the stock.

Arrowstreet Capital Limited Partnership lifted its stake in shares of Workday, Inc. (NASDAQ:WDAY - Free Report) by 22.8% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,360,166 shares of the software maker's stock after acquiring an additional 252,341 shares during the quarter. Arrowstreet Capital Limited Partnership owned approximately 0.52% of Workday worth $292,136,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds also recently made changes to their positions in the company. Aptus Capital Advisors LLC increased its holdings in Workday by 9.7% in the fourth quarter. Aptus Capital Advisors LLC now owns 3,211 shares of the software maker's stock worth $690,000 after purchasing an additional 283 shares in the last quarter. Ally Financial Inc. increased its holdings in Workday by 9.1% in the fourth quarter. Ally Financial Inc. now owns 24,000 shares of the software maker's stock worth $5,155,000 after purchasing an additional 2,000 shares in the last quarter. CreativeOne Wealth LLC increased its holdings in Workday by 6.6% in the fourth quarter. CreativeOne Wealth LLC now owns 4,061 shares of the software maker's stock worth $872,000 after purchasing an additional 252 shares in the last quarter. The Manufacturers Life Insurance Company increased its holdings in Workday by 4.4% in the fourth quarter. The Manufacturers Life Insurance Company now owns 2,772,669 shares of the software maker's stock worth $595,514,000 after purchasing an additional 116,125 shares in the last quarter. Finally, UMB Bank n.a. increased its holdings in shares of Workday by 38.8% during the fourth quarter. UMB Bank n.a. now owns 1,155 shares of the software maker's stock valued at $248,000 after acquiring an additional 323 shares in the last quarter. 89.81% of the stock is currently owned by institutional investors.

Workday Price Performance

Shares of NASDAQ:WDAY opened at $130.80 on Monday. The stock has a market cap of $32.31 billion, a price-to-earnings ratio of 40.88, a PEG ratio of 1.39 and a beta of 1.09. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.30. Workday, Inc. has a 12-month low of $110.36 and a 12-month high of $249.85. The business's 50 day moving average is $128.10 and its 200 day moving average is $159.55.

Workday (NASDAQ:WDAY - Get Free Report) last announced its earnings results on Thursday, May 21st. The software maker reported $2.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.51 by $0.15. The company had revenue of $2.54 billion for the quarter, compared to analysts' expectations of $2.52 billion. Workday had a return on equity of 14.75% and a net margin of 8.60%.Workday's quarterly revenue was up 13.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.23 earnings per share. On average, sell-side analysts forecast that Workday, Inc. will post 5.4 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Robert Enslin sold 5,373 shares of Workday stock in a transaction that occurred on Monday, April 6th. The stock was sold at an average price of $129.41, for a total transaction of $695,319.93. Following the transaction, the insider owned 165,414 shares of the company's stock, valued at $21,406,225.74. The trade was a 3.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at 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, insider Gerrit S. Kazmaier sold 9,356 shares of Workday stock in a transaction that occurred on Tuesday, April 7th. The shares were sold at an average price of $128.39, for a total value of $1,201,216.84. Following the transaction, the insider directly 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 disclosure for this sale is available in the SEC filing. 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. Insiders sold 774,814 shares of company stock worth $102,709,316 in the last ninety days. Corporate insiders own 18.64% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the company. Evercore downgraded Workday from an "outperform" rating to an "in-line" rating and set a $160.00 price objective for the company. in a report on Wednesday, February 25th. Needham & Company LLC decreased their price objective on Workday from $300.00 to $180.00 and set a "buy" rating for the company in a report on Friday, May 22nd. Sanford C. Bernstein restated an "outperform" rating and set a $216.00 price objective on shares of Workday in a report on Friday, May 22nd. Robert W. Baird set a $195.00 price objective on Workday in a report on Tuesday, February 24th. Finally, BTIG Research restated a "buy" rating and set a $175.00 price objective on shares of Workday in a report on Monday, May 18th. One investment 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 given a Sell rating to the company. According to MarketBeat, Workday has an average rating of "Moderate Buy" and a consensus price target of $185.03.

Workday 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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