Arrowstreet Capital Limited Partnership Sells 156,213 Shares of Workday, Inc. $WDAY

Key Points

• Arrowstreet Capital cut its Workday position by 11.5% in the first quarter, selling 156,213 shares and leaving it with about 1.2 million shares worth roughly $156.4 million.
• Analyst sentiment is mostly positive, with Workday holding a “Moderate Buy” consensus rating and an average target price of $179.80, despite a few sell ratings.
• Workday reported solid quarterly results, beating earnings and revenue estimates with EPS of $2.66 and revenue of $2.54 billion, up 13.5% year over year.

Arrowstreet Capital Limited Partnership lowered its position in Workday, Inc. (NASDAQ:WDAY - Free Report) by 11.5% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 1,203,953 shares of the software maker's stock after selling 156,213 shares during the period. Arrowstreet Capital Limited Partnership owned approximately 0.47% of Workday worth $156,418,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors have also modified their holdings of WDAY. Rakuten Securities Inc. bought a new stake in Workday during the 2nd quarter valued at $25,000. Measured Wealth Private Client Group LLC purchased a new position in shares of Workday during the third quarter valued at $26,000. JPL Wealth Management LLC bought a new stake in shares of Workday in the third quarter valued at about $30,000. DT Investment Partners LLC purchased a new position in Workday during the 4th quarter valued at about $27,000. Finally, LRI Investments LLC purchased a new position in Workday during the fourth quarter valued at approximately $29,000. Hedge funds and other institutional investors own 89.81% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the company. HC Wainwright set a $140.00 target price on Workday in a report on Wednesday, May 27th. Barclays upgraded shares of Workday from an "overweight" rating to a "buy" rating in a research note on Friday, May 22nd. Wall Street Zen upgraded shares of Workday from a "hold" rating to a "buy" rating in a research note on Saturday, March 28th. William Blair raised shares of Workday to a "strong-buy" rating in a report on Friday, May 22nd. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Workday in a research report on Wednesday, June 17th. One research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, thirteen have issued a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $179.80.

Workday Price Performance

Shares of WDAY opened at $135.34 on Friday. The business's 50-day moving average is $133.13 and its two-hundred day moving average is $141.84. The company has a market capitalization of $33.43 billion, a P/E ratio of 42.29, a P/E/G ratio of 1.44 and a beta of 1.11. Workday, Inc. has a fifty-two week low of $110.36 and a fifty-two week high of $249.85. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.01 and a current ratio of 1.01.

Workday (NASDAQ:WDAY - Get Free Report) last posted its earnings results on Thursday, May 21st. The software maker reported $2.66 earnings per share for the quarter, beating the consensus estimate of $2.51 by $0.15. Workday had a net margin of 8.60% and a return on equity of 14.75%. The firm had revenue of $2.54 billion during the quarter, compared to analyst estimates of $2.52 billion. During the same period in the previous year, the firm earned $2.23 EPS. The business's quarterly revenue was up 13.5% on a year-over-year basis. Research analysts predict that Workday, Inc. will post 5.38 earnings per share for the current year.

Insider Activity

In other Workday news, insider Robert Enslin sold 5,374 shares of Workday stock in a transaction on Sunday, July 5th. The shares were sold at an average price of $134.90, for a total transaction of $724,952.60. Following the sale, the insider owned 239,469 shares of the company's stock, valued at $32,304,368.10. The trade was a 2.19% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 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 firm's stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $122.04, for a total transaction of $13,119,300.00. Following the completion of the transaction, the insider directly owned 105,049 shares in the company, valued at approximately $12,820,179.96. This represents a 50.58% decrease in their ownership of the stock. 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 875,020 shares of company stock worth $113,938,503 over the last quarter. 18.64% of the stock is currently owned by corporate insiders.

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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