Auto Owners Insurance Co Has $2.20 Billion Holdings in Workday, Inc. $WDAY

Key Points

• Auto Owners Insurance Co dramatically increased its Workday stake in the fourth quarter, buying over 10.19 million additional shares and bringing its holdings to 10.23 million shares worth about $2.20 billion. Workday now represents roughly 0.5% of the firm’s portfolio and about 3.89% of Workday’s stock.
• Workday’s latest quarterly results were solid, with EPS of $2.66 versus estimates of $2.51 and revenue of $2.54 billion, up 13.5% year over year. Analysts still see moderate upside, with a consensus rating of “Moderate Buy” and an average price target of $185.03.
• Despite the strong earnings beat and positive ecosystem headlines, the stock has faced pressure: it was trading at $116.93, near its 12-month low of $110.36 and well below its 12-month high of $249.85. Recent insider sales by major shareholder David A. Duffield and CFO Zane Rowe also added to investor caution.

Auto Owners Insurance Co lifted its stake in shares of Workday, Inc. (NASDAQ:WDAY - Free Report) by 25,412.8% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 10,230,616 shares of the software maker's stock after purchasing an additional 10,190,516 shares during the period. Workday makes up about 0.5% of Auto Owners Insurance Co's investment portfolio, making the stock its 23rd biggest position. Auto Owners Insurance Co owned approximately 3.89% of Workday worth $2,197,332,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also recently bought and sold shares of WDAY. Rakuten Securities Inc. acquired a new position in shares of Workday in the 2nd quarter valued at $25,000. Measured Wealth Private Client Group LLC acquired a new stake in Workday in the 3rd quarter valued at approximately $26,000. DT Investment Partners LLC acquired a new stake in shares of Workday in the fourth quarter valued at approximately $27,000. LRI Investments LLC acquired a new stake in Workday in the 4th quarter valued at $29,000. Finally, JPL Wealth Management LLC bought a new stake in Workday during the third quarter worth about $30,000. Institutional investors and hedge funds own 89.81% of the company's stock.

Key Headlines Impacting Workday

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Embark’s acquisition of Commit expands third-party consulting capacity around Workday deployments, which could support more implementations, upgrades, and ecosystem activity for Workday (WDAY). Workday (WDAY) Why Embark’s Commit Deal Could Matter For Its Ecosystem
• Positive Sentiment: Euna Payments earning Workday certification and joining the Workday Marketplace reinforces the strength of Workday’s partner ecosystem and may improve customer adoption in public-sector finance workflows. Euna Payments Achieves Workday Certification...
• Neutral Sentiment: Analyst-style coverage comparing Q1 results across finance and HR software names puts Workday in the broader sector context, but it does not appear to include a company-specific catalyst. Q1 Earnings Highs And Lows: Workday...
• Neutral Sentiment: Coverage on AI-driven SaaS pricing changes could matter long term for Workday, but the piece is industry-wide rather than a direct update on the company. What CIOs should know about AI-driven SaaS pricing changes
• Neutral Sentiment: New AI tools positioning themselves as replacements for Oracle and Workday support services highlight rising competition around enterprise software administration, though the impact on Workday’s core business is indirect. Dayos Releases Athena: Agentic Replacement for Oracle and Workday AMS Contracts...
• Negative Sentiment: Recent analysis says Workday (WDAY) may be viewed as undervalued, but it also highlights weak momentum, with the stock down sharply over the past day, week, and year-to-date, which can weigh on investor sentiment. Workday (WDAY) Stock Could Be 31.7% Undervalued...
• Negative Sentiment: Workday has also been described as underperforming the technology sector over the past year, reinforcing concerns about relative strength versus peers. Workday Stock: Is WDAY Underperforming the Technology Sector?

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on WDAY shares. Citigroup reiterated a "market perform" rating on shares of Workday in a research note on Friday, May 22nd. Mizuho cut their price target on Workday from $275.00 to $210.00 and set an "outperform" rating for the company in a report on Wednesday, February 25th. Piper Sandler lifted their price objective on shares of Workday from $135.00 to $145.00 and gave the stock a "neutral" rating in a research report on Friday, May 22nd. Robert W. Baird set a $195.00 price objective on shares of Workday in a report on Tuesday, February 24th. Finally, Morgan Stanley cut their target price on shares of Workday from $280.00 to $200.00 and set an "equal weight" rating for the company in a research note on Monday, February 23rd. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, fifteen have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $185.03.

Workday Stock Performance

Shares of WDAY opened at $116.93 on Friday. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 0.30. The firm's fifty day simple moving average is $127.53 and its two-hundred day simple moving average is $156.56. Workday, Inc. has a 12 month low of $110.36 and a 12 month high of $249.85. The stock has a market capitalization of $28.88 billion, a P/E ratio of 36.54, a price-to-earnings-growth ratio of 1.24 and a beta of 1.09.

Workday (NASDAQ:WDAY - Get Free Report) last posted its quarterly earnings data on Thursday, May 21st. The software maker reported $2.66 earnings per share for the quarter, topping the consensus estimate of $2.51 by $0.15. Workday had a return on equity of 14.75% and a net margin of 8.60%.The firm had revenue of $2.54 billion during the quarter, compared to analyst estimates of $2.52 billion. During the same period last year, the company posted $2.23 EPS. The business's quarterly revenue was up 13.5% on a year-over-year basis. As a group, analysts predict that Workday, Inc. will post 5.4 EPS for the current year.

Insider Transactions at Workday

In related news, major shareholder David A. Duffield sold 107,500 shares of the stock in a transaction on Friday, June 12th. The stock was sold at an average price of $128.52, for a total value of $13,815,900.00. Following the transaction, the insider directly owned 105,049 shares in the company, valued at $13,500,897.48. This trade represents a 50.58% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Zane Rowe sold 6,000 shares of Workday stock in a transaction on Tuesday, April 7th. The shares were sold at an average price of $128.22, for a total transaction of $769,320.00. Following the completion of the sale, the chief financial officer directly owned 217,930 shares of the company's stock, valued at approximately $27,942,984.60. The trade was a 2.68% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 774,814 shares of company stock valued at $102,272,866 in the last 90 days. 18.64% of the stock is currently owned by company 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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