Handelsbanken Fonder AB Grows Stock Holdings in Workday, Inc. $WDAY

Key Points

• Handelsbanken Fonder increased its Workday stake by 57.4% in the second quarter, reaching 126,296 shares valued at approximately $15.5 million. Institutional investors collectively own 89.81% of WDAY.
• Workday shares surged amid reported Silver Lake acquisition discussions that could value the company at roughly $43 billion, though no deal has been confirmed and the rally remains speculative.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $182.14 price target; however, insiders have sold approximately $113.9 million of stock over the past 90 days.

Handelsbanken Fonder AB lifted its holdings in shares of Workday, Inc. (NASDAQ:WDAY - Free Report) by 57.4% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 126,296 shares of the software maker's stock after acquiring an additional 46,051 shares during the quarter. Handelsbanken Fonder AB owned approximately 0.05% of Workday worth $15,461,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also bought and sold shares of WDAY. Sapient Capital LLC purchased a new position in Workday in the second quarter worth about $13,045,000. Fluent Financial LLC purchased a new stake in Workday in the 2nd quarter worth approximately $2,249,000. Elevation Wealth Partners LLC raised its holdings in Workday by 1,097.0% during the second quarter. Elevation Wealth Partners LLC now owns 395 shares of the software maker's stock valued at $48,000 after acquiring an additional 362 shares during the period. Assenagon Asset Management S.A. lifted its position in shares of Workday by 210.3% in the 2nd quarter. Assenagon Asset Management S.A. now owns 375,703 shares of the software maker's stock worth $45,994,000 after purchasing an additional 254,623 shares during the period. Finally, 180 Wealth Advisors LLC lifted its holdings in shares of Workday by 5.6% during the 2nd quarter. 180 Wealth Advisors LLC now owns 1,960 shares of the software maker's stock valued at $240,000 after purchasing an additional 104 shares during the last quarter. 89.81% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In related news, major shareholder David A. Duffield sold 107,500 shares of the firm's stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $122.04, for a total value of $13,119,300.00. Following the completion of the sale, the insider owned 105,049 shares in the company, valued at $12,820,179.96. This trade represents a 50.58% decrease in their ownership of the stock. 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, insider Robert Enslin sold 5,374 shares of the company's stock in a transaction on Sunday, July 5th. The stock was sold at an average price of $134.90, for a total value of $724,952.60. Following the transaction, the insider directly owned 239,469 shares in the company, valued at $32,304,368.10. This represents a 2.19% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 875,020 shares of company stock valued at $113,938,503 in the last ninety days. 18.64% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on WDAY shares. Royal Bank Of Canada reiterated an "outperform" rating on shares of Workday in a research note on Friday, May 22nd. The Goldman Sachs Group dropped their price objective on shares of Workday from $206.00 to $151.00 and set a "neutral" rating on the stock in a research note on Tuesday, May 26th. Piper Sandler lifted their price target on Workday from $135.00 to $145.00 and gave the company a "neutral" rating in a research note on Friday, May 22nd. BTIG Research restated a "buy" rating and set a $175.00 price objective on shares of Workday in a research report on Monday, May 18th. Finally, Barclays upgraded Workday from an "overweight" rating to a "buy" rating in a research report on Friday, May 22nd. One research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, thirteen have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $182.14.

Workday News Roundup

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Potential $43 billion takeout: Reuters reported that Silver Lake and Workday have held discussions in recent months regarding a possible acquisition. The prospect of a buyout at or above Workday’s roughly $43 billion market value fueled takeover speculation and drove heavy trading, including temporary volatility-related trading halts. Silver Lake in talks to buy Workday, sources say
• Positive Sentiment: Buyout could revive software-sector interest: Coverage characterized the reported transaction as potentially one of the largest software buyouts in history. Investors are viewing a potential private-equity deal as a catalyst for Workday’s valuation and possibly broader interest in beaten-down enterprise software stocks. Workday's stock sees a record surge. Could a buyout spark a software revival?
• Positive Sentiment: Analyst remains bullish: William Blair analyst Patrick McIlwee reiterated a Buy rating, citing what he considers an oversold valuation, the quality of Workday’s franchise and potential upside from a takeover. Analyst Reiterates Buy on Workday
• Neutral Sentiment: Deal remains unconfirmed: The discussions are reportedly ongoing, and sources cautioned that there is no guarantee an agreement will be reached. Workday’s rally therefore reflects speculation rather than a completed transaction. Exclusive-Silver Lake in talks to buy Workday, sources say

Workday Stock Up 17.8%

Shares of NASDAQ WDAY opened at $206.45 on Friday. The business's fifty day simple moving average is $143.31 and its 200-day simple moving average is $138.89. 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 stock has a market cap of $50.99 billion, a P/E ratio of 64.52, a PEG ratio of 1.87 and a beta of 1.08. Workday, Inc. has a 12-month low of $110.36 and a 12-month high of $249.85.

Workday (NASDAQ:WDAY - Get Free Report) last issued its earnings results on Thursday, May 21st. The software maker reported $2.66 EPS for the quarter, topping analysts' consensus estimates of $2.51 by $0.15. The firm had revenue of $2.54 billion during the quarter, compared to the consensus estimate of $2.52 billion. Workday had a net margin of 8.60% and a return on equity of 14.75%. The company's revenue was up 13.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.23 earnings per share. As a group, equities analysts predict that Workday, Inc. will post 5.38 EPS for the current fiscal year.

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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