Charles Schwab Investment Management Inc. Boosts Stake in Workday, Inc. (NASDAQ:WDAY)

Key Points

• Charles Schwab Investment Management Inc. increased its stake in Workday, Inc. by 6.0%, owning a total of 1,442,263 shares valued at approximately $336.8 million as of the latest quarter.
• Workday reported earnings per share (EPS) of $2.23 for the last quarter, surpassing estimates and showing a 12.6% increase in revenue year-over-year.
• Analysts have mixed ratings for Workday, with 19 buy ratings but also some operators lowering target prices, reflecting differing views on the stock’s future.

Charles Schwab Investment Management Inc. lifted its holdings in Workday, Inc. (NASDAQ:WDAY - Free Report) by 6.0% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 1,442,263 shares of the software maker's stock after acquiring an additional 82,261 shares during the period. Charles Schwab Investment Management Inc. owned 0.54% of Workday worth $336,812,000 at the end of the most recent quarter.

Several other large investors also recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its holdings in shares of Workday by 2.3% in the first quarter. Vanguard Group Inc. now owns 20,598,655 shares of the software maker's stock worth $4,810,404,000 after buying an additional 455,855 shares during the period. The Manufacturers Life Insurance Company grew its position in Workday by 60.7% in the 4th quarter. The Manufacturers Life Insurance Company now owns 3,722,255 shares of the software maker's stock valued at $960,454,000 after acquiring an additional 1,406,088 shares during the last quarter. Brown Advisory Inc. increased its stake in Workday by 1.5% in the fourth quarter. Brown Advisory Inc. now owns 3,530,701 shares of the software maker's stock worth $911,027,000 after purchasing an additional 52,104 shares during the period. T. Rowe Price Investment Management Inc. bought a new stake in shares of Workday during the fourth quarter worth $658,735,000. Finally, Northern Trust Corp boosted its stake in shares of Workday by 51.2% during the fourth quarter. Northern Trust Corp now owns 2,263,981 shares of the software maker's stock valued at $584,175,000 after purchasing an additional 767,034 shares during the period. 89.81% of the stock is owned by institutional investors.

Insider Buying and Selling

In other Workday news, CFO Zane Rowe sold 6,000 shares of the firm's stock in a transaction on Tuesday, July 8th. The stock was sold at an average price of $239.59, for a total value of $1,437,540.00. Following the completion of the sale, the chief financial officer directly owned 178,418 shares of the company's stock, valued at $42,747,168.62. This trade represents a 3.25% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, major shareholder David A. Duffield sold 73,971 shares of the company's stock in a transaction dated Tuesday, June 24th. The shares were sold at an average price of $238.66, for a total transaction of $17,653,918.86. Following the completion of the sale, the insider directly owned 102,997 shares of the company's stock, valued at $24,581,264.02. This represents a 41.80% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 329,005 shares of company stock worth $79,203,523 in the last ninety days. 20.00% of the stock is owned by corporate insiders.

Workday Stock Performance

Shares of Workday stock traded up $1.09 during trading on Friday, hitting $222.07. 2,386,346 shares of the company's stock were exchanged, compared to its average volume of 2,506,795. Workday, Inc. has a 52-week low of $205.33 and a 52-week high of $294.00. The company has a debt-to-equity ratio of 0.33, a quick ratio of 2.07 and a current ratio of 2.07. The stock has a market capitalization of $59.29 billion, a price-to-earnings ratio of 122.69, a PEG ratio of 3.36 and a beta of 1.24. The business has a 50-day simple moving average of $237.71 and a 200-day simple moving average of $245.15.

Workday (NASDAQ:WDAY - Get Free Report) last issued its quarterly earnings data on Thursday, May 22nd. The software maker reported $2.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.01 by $0.22. Workday had a return on equity of 8.00% and a net margin of 5.60%. The business had revenue of $2.24 billion during the quarter, compared to analysts' expectations of $2.22 billion. During the same quarter in the previous year, the firm posted $1.74 EPS. The company's revenue for the quarter was up 12.6% on a year-over-year basis. On average, research analysts forecast that Workday, Inc. will post 2.63 EPS for the current year.

Analyst Ratings Changes

WDAY has been the topic of several recent analyst reports. Loop Capital reduced their price target on shares of Workday from $285.00 to $250.00 and set a "hold" rating on the stock in a research note on Friday, May 23rd. Wall Street Zen raised shares of Workday from a "hold" rating to a "buy" rating in a research report on Sunday, July 13th. Guggenheim reiterated a "neutral" rating on shares of Workday in a report on Friday, May 23rd. Royal Bank Of Canada reissued an "outperform" rating and issued a $340.00 price objective on shares of Workday in a research note on Friday, May 23rd. Finally, JMP Securities reaffirmed a "market outperform" rating and set a $315.00 target price on shares of Workday in a research report on Friday, May 23rd. One research analyst has rated the stock with a sell rating, seven have issued a hold rating, nineteen have assigned a buy rating and two have given a strong buy rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $296.88.

About Workday

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.