California State Teachers Retirement System Raises Stake in Workday, Inc. $WDAY

Key Points

• California State Teachers Retirement System increased its Workday stake by 11,770.8% in the second quarter, bringing its holdings to 36.9 million shares valued at approximately $4.52 billion, or 14.94% of the company. Institutional investors collectively own 89.81% of Workday.
• Workday reported quarterly earnings of $2.75 per share, surpassing the $2.61 analyst estimate, while revenue rose 12.8% year over year to $2.65 billion. The stock opened at $186.05, with a market capitalization of about $44.84 billion.
• Analyst views remain mixed: Workday has an overall “Hold” rating and an average price target of $206.34, based on 20 Buy, 17 Hold, and 2 Sell ratings. Recent insider activity included sizable sales by major shareholder David Duffield and other insiders.

California State Teachers Retirement System increased its holdings in shares of Workday, Inc. (NASDAQ:WDAY - Free Report) by 11,770.8% in the second quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 36,907,426 shares of the software maker's stock after purchasing an additional 36,596,516 shares during the quarter. California State Teachers Retirement System owned 14.94% of Workday worth $4,518,207,000 as of its most recent filing with the SEC.

Other hedge funds have also recently bought and sold shares of the company. Paralel Advisors LLC purchased a new stake in Workday during the second quarter worth approximately $2,178,000. Wedmont Private Capital raised its stake in shares of Workday by 25.9% in the 2nd quarter. Wedmont Private Capital now owns 2,751 shares of the software maker's stock valued at $337,000 after acquiring an additional 566 shares during the period. Kintra Wealth LLC acquired a new position in shares of Workday during the 2nd quarter valued at $499,000. Figure 8 Investment Strategies LLC lifted its holdings in shares of Workday by 84.2% during the 2nd quarter. Figure 8 Investment Strategies LLC now owns 6,571 shares of the software maker's stock valued at $804,000 after acquiring an additional 3,003 shares in the last quarter. Finally, HB Wealth Management LLC boosted its position in Workday by 181.0% during the 2nd quarter. HB Wealth Management LLC now owns 20,328 shares of the software maker's stock worth $2,489,000 after purchasing an additional 13,094 shares during the period. Hedge funds and other institutional investors own 89.81% of the company's stock.

Insider Activity

In other Workday news, insider Gerrit Kazmaier sold 2,728 shares of Workday stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $143.62, for a total transaction of $391,795.36. Following the sale, the insider directly owned 266,388 shares in the company, valued at $38,258,644.56. The trade was a 1.01% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 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 Duffield sold 90,615 shares of the company's stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $198.14, for a total value of $17,954,456.10. Following the completion of the transaction, the insider directly owned 105,049 shares in the company, valued at approximately $20,814,408.86. The trade was a 46.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 845,596 shares of company stock worth $119,870,637 over the last quarter. Corporate insiders own 18.64% of the company's stock.

Workday Stock Performance

NASDAQ:WDAY opened at $186.05 on Thursday. The company has a debt-to-equity ratio of 0.31, a current ratio of 0.91 and a quick ratio of 0.91. The firm has a 50-day moving average of $169.85 and a two-hundred day moving average of $143.60. The stock has a market cap of $44.84 billion, a P/E ratio of 37.74, a PEG ratio of 1.88 and a beta of 1.08. Workday, Inc. has a 1-year low of $110.36 and a 1-year high of $249.85.

Workday (NASDAQ:WDAY - Get Free Report) last announced its earnings results on Thursday, August 27th. The software maker reported $2.75 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.61 by $0.14. Workday had a return on equity of 20.95% and a net margin of 12.32%.The business had revenue of $2.65 billion for the quarter, compared to analyst estimates of $2.64 billion. During the same period in the previous year, the company earned $2.21 earnings per share. The company's revenue for the quarter was up 12.8% compared to the same quarter last year. On average, research analysts expect that Workday, Inc. will post 5.3 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

WDAY has been the subject of several recent research reports. Oppenheimer increased their price target on Workday from $165.00 to $220.00 and gave the company an "outperform" rating in a report on Monday, August 24th. The Goldman Sachs Group upped their target price on Workday from $151.00 to $164.00 and gave the stock a "neutral" rating in a research report on Monday, August 31st. Summit Redstone set a $275.00 target price on Workday in a research note on Wednesday, May 27th. CLSA initiated coverage on Workday in a report on Monday, July 20th. They set an "underperform" rating and a $92.00 target price on the stock. Finally, Citigroup boosted their price target on Workday from $139.00 to $201.00 and gave the stock a "neutral" rating in a research report on Friday, August 28th. Twenty analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Workday currently has an average rating of "Hold" and an average price target of $206.34.

Workday Company Profile

Workday, Inc develops cloud-based enterprise software designed to help organizations manage finance, human resources and related business operations. Its platform provides tools for financial management, accounting, procurement, expenses, payroll, workforce management, recruiting, talent management, employee experience and enterprise planning.

The company also offers analytics, reporting and artificial intelligence capabilities that support budgeting, forecasting, workforce planning and business decision-making.

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