Geode Capital Management LLC Purchases 75,922 Shares of Workday, Inc. $WDAY

Key Points

• Geode Capital Management increased its Workday stake by 1.5% in the fourth quarter, buying 75,922 shares and bringing its total holdings to 5.09 million shares worth about $1.09 billion.
• Workday’s latest quarterly results beat expectations, with EPS of $2.66 and revenue of $2.54 billion, both above estimates. Revenue also rose 13.5% year over year, helped by stronger AI-related demand.
• Analysts remain broadly constructive but cautious, with several recent price-target changes and a consensus rating of “Moderate Buy”. The average target price is $185.03, above the stock’s recent level around $146.19.

Geode Capital Management LLC raised its holdings in shares of Workday, Inc. (NASDAQ:WDAY - Free Report) by 1.5% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 5,091,926 shares of the software maker's stock after acquiring an additional 75,922 shares during the quarter. Geode Capital Management LLC owned about 1.94% of Workday worth $1,089,970,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors have also recently made changes to their positions in the company. Vanguard Group Inc. raised its stake in shares of Workday by 14.7% during the 4th quarter. Vanguard Group Inc. now owns 25,009,288 shares of the software maker's stock valued at $5,371,495,000 after purchasing an additional 3,210,232 shares during the period. State Street Corp raised its stake in shares of Workday by 0.8% during the 3rd quarter. State Street Corp now owns 9,674,568 shares of the software maker's stock valued at $2,328,959,000 after purchasing an additional 74,052 shares during the period. Hotchkis & Wiley Capital Management LLC raised its stake in shares of Workday by 47.5% during the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 5,842,491 shares of the software maker's stock valued at $1,406,463,000 after purchasing an additional 1,882,391 shares during the period. First Eagle Investment Management LLC raised its stake in shares of Workday by 87.8% during the 4th quarter. First Eagle Investment Management LLC now owns 4,338,773 shares of the software maker's stock valued at $931,882,000 after purchasing an additional 2,028,085 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Workday by 41.5% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 3,761,599 shares of the software maker's stock valued at $905,530,000 after purchasing an additional 1,103,421 shares during the period. Hedge funds and other institutional investors own 89.81% of the company's stock.

Key Workday News

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Workday’s latest quarterly results beat expectations, with revenue and earnings topping estimates and management highlighting renewed momentum in the core business plus stronger AI-driven demand for HR and finance automation. This has supported the stock’s recent move higher.
• Positive Sentiment: Workday expanded its strategic partnership with Google Cloud to bring AI agents for HR and finance into Gemini Enterprise and daily workflows, reinforcing the company’s AI product story and potentially improving long-term adoption. Workday and Google Cloud Expand Strategic Partnership to Bring AI Agents for HR and Finance Into Employees' Daily Workflows
• Positive Sentiment: Analyst coverage has been constructive, with commentary around Workday being a top momentum and value name, and Bank of America reportedly reinstating coverage while acknowledging the strength of its sticky enterprise software franchise.
• Positive Sentiment: Broader software sentiment improved after Snowflake’s strong results eased fears that AI would displace subscription software, which helped lift Workday and other SaaS names as investors rotated back into AI-enabled enterprise platforms.
• Neutral Sentiment: Workday also announced a deeper Google Cloud integration for AI agents and other product enhancements, which is strategically important but still needs time to translate into sustained revenue acceleration.
• Negative Sentiment: Despite the recent rebound, Workday remains well below its 52-week high and has lagged the broader market over the past year, so some investors may still view the rally as a recovery move rather than a full trend reversal.

Insider Transactions at Workday

In other news, insider Gerrit S. Kazmaier sold 9,356 shares of the company's stock in a transaction dated Tuesday, April 7th. The stock was sold at an average price of $128.39, for a total value of $1,201,216.84. Following the completion of the transaction, the insider directly owned 165,074 shares in the company, valued at approximately $21,193,850.86. This represents a 5.36% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 company's stock in a transaction dated Tuesday, March 31st. The stock was sold at an average price of $129.76, for a total value of $13,949,200.00. Following the completion of the transaction, the insider owned 105,049 shares of the company's stock, valued at $13,631,158.24. The trade was 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 sold a total of 989,814 shares of company stock valued at $131,576,291 over the last quarter. Company insiders own 18.64% of the company's stock.

Workday Price Performance

Workday stock opened at $146.19 on Friday. Workday, Inc. has a 52 week low of $110.36 and a 52 week high of $257.09. The business has a 50-day simple moving average of $125.60 and a 200 day simple moving average of $165.78. The company has a quick ratio of 1.32, a current ratio of 1.01 and a debt-to-equity ratio of 0.30. The stock has a market cap of $37.57 billion, a price-to-earnings ratio of 45.68, a PEG ratio of 1.43 and a beta of 1.04.

Workday (NASDAQ:WDAY - Get Free Report) last posted its earnings results on Thursday, May 21st. The software maker reported $2.66 EPS 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 business had revenue of $2.54 billion during the quarter, compared to analysts' expectations of $2.52 billion. During the same period in the previous year, the business earned $2.23 earnings per share. The firm's revenue was up 13.5% on a year-over-year basis. On average, research analysts forecast that Workday, Inc. will post 5.19 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. The Goldman Sachs Group decreased their price objective on Workday from $206.00 to $151.00 and set a "neutral" rating on the stock in a research note on Tuesday. UBS Group boosted their price objective on Workday from $130.00 to $140.00 and gave the company a "neutral" rating in a research note on Friday, May 22nd. Piper Sandler boosted their price objective on Workday from $135.00 to $145.00 and gave the company a "neutral" rating in a research note on Friday, May 22nd. Jefferies Financial Group boosted their price objective on Workday from $115.00 to $140.00 and gave the company a "hold" rating in a research note on Friday, May 22nd. Finally, Monness Crespi & Hardt upgraded Workday to a "hold" rating in a research note on Friday, May 22nd. One equities research 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 company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $185.03.

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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