Canada Pension Plan Investment Board Grows Stake in Workday, Inc. $WDAY

Key Points

• The Canada Pension Plan Investment Board has increased its stake in Workday, Inc. by 83.9%, acquiring a total of 166,636 shares valued at approximately $38.9 million.
• Analysts have recently adjusted their price targets for Workday, with Deutsche Bank lowering it from $330 to $280 while maintaining a "buy" rating, reflecting a trend of mixed ratings among various investment firms.
• Insider trading activity included Workday's CEO selling 6,250 shares at an average price of $239.43, which indicates a significant reduction in his ownership of the company's stock.

Canada Pension Plan Investment Board raised its stake in Workday, Inc. (NASDAQ:WDAY - Free Report) by 83.9% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 166,636 shares of the software maker's stock after acquiring an additional 76,004 shares during the period. Canada Pension Plan Investment Board owned approximately 0.06% of Workday worth $38,915,000 as of its most recent SEC filing.

A number of other institutional investors have also recently modified their holdings of the stock. Parnassus Investments LLC lifted its holdings in shares of Workday by 22.4% during the first quarter. Parnassus Investments LLC now owns 2,996,429 shares of the software maker's stock valued at $699,756,000 after purchasing an additional 548,694 shares in the last quarter. Trexquant Investment LP bought a new position in shares of Workday during the first quarter valued at $3,156,000. Itau Unibanco Holding S.A. bought a new position in shares of Workday during the first quarter valued at $48,000. Landscape Capital Management L.L.C. lifted its holdings in shares of Workday by 3.8% during the first quarter. Landscape Capital Management L.L.C. now owns 10,813 shares of the software maker's stock valued at $2,525,000 after purchasing an additional 399 shares in the last quarter. Finally, LTS One Management LP lifted its holdings in shares of Workday by 6.4% during the first quarter. LTS One Management LP now owns 60,000 shares of the software maker's stock valued at $14,012,000 after purchasing an additional 3,625 shares in the last quarter. 89.81% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

WDAY has been the topic of a number of research analyst reports. Deutsche Bank Aktiengesellschaft lowered their price target on Workday from $330.00 to $280.00 and set a "buy" rating on the stock in a report on Friday, August 22nd. Stifel Nicolaus decreased their price objective on Workday from $275.00 to $255.00 and set a "hold" rating on the stock in a research note on Friday, August 22nd. Oppenheimer cut their target price on Workday from $300.00 to $270.00 and set an "outperform" rating for the company in a research report on Friday, August 22nd. Cantor Fitzgerald set a $265.00 target price on Workday in a research report on Thursday, August 14th. Finally, Barclays cut their target price on Workday from $321.00 to $298.00 and set an "overweight" rating for the company in a research report on Monday, August 18th. Two analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Workday has a consensus rating of "Moderate Buy" and a consensus target price of $286.81.

Insiders Place Their Bets

In other news, CEO Carl M. Eschenbach sold 6,250 shares of the firm's stock in a transaction that occurred on Tuesday, July 1st. The stock was sold at an average price of $239.43, for a total value of $1,496,437.50. Following the completion of the sale, the chief executive officer directly owned 1,472 shares of the company's stock, valued at $352,440.96. This trade represents a 80.94% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CAO Mark S. Garfield sold 451 shares of the firm's stock in a transaction that occurred on Thursday, July 10th. The shares were sold at an average price of $234.86, for a total value of $105,921.86. Following the completion of the sale, the chief accounting officer directly owned 42,977 shares of the company's stock, valued at $10,093,578.22. The trade was a 1.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 325,880 shares of company stock worth $78,449,679. 19.31% of the stock is currently owned by company insiders.

Workday Stock Performance

NASDAQ WDAY opened at $230.82 on Friday. The stock has a market capitalization of $61.63 billion, a PE ratio of 106.86, a P/E/G ratio of 3.41 and a beta of 1.24. The business has a 50 day simple moving average of $231.09 and a two-hundred day simple moving average of $241.05. The company has a debt-to-equity ratio of 0.33, a current ratio of 2.10 and a quick ratio of 2.07. Workday, Inc. has a 1-year low of $205.33 and a 1-year high of $294.00.

Workday (NASDAQ:WDAY - Get Free Report) last released its quarterly earnings results on Thursday, August 21st. The software maker reported $2.21 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.12. The business had revenue of $2.35 billion during the quarter, compared to analysts' expectations of $2.34 billion. Workday had a return on equity of 9.74% and a net margin of 6.51%.The firm's revenue for the quarter was up 12.6% compared to the same quarter last year. During the same quarter last year, the business posted $1.75 EPS. Workday has set its FY 2026 guidance at EPS. Q3 2026 guidance at EPS. On average, research analysts predict that Workday, Inc. will post 2.63 EPS for the current fiscal year.

Workday Profile

Workday, Inc provides enterprise cloud applications in the United States and internationally. Its applications help its customers to plan, execute, analyze, and extend to other applications and environments to manage their business and operations. The company offers a suite of financial management applications to maintain accounting information in the general ledger; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; enhance financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations.

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