Healthcare of Ontario Pension Plan Trust Fund Decreases Stock Holdings in Workday, Inc. $WDAY

Key Points

• Healthcare of Ontario Pension Plan Trust Fund cut its Workday stake by 5.1% in the fourth quarter, selling 20,518 shares and ending with 381,807 shares valued at about $82 million.
• Workday’s recent quarterly results beat expectations, with earnings of $2.66 per share on revenue of $2.54 billion, while revenue rose 13.5% year over year.
• Analyst sentiment remains mixed but constructive: Workday has a Moderate Buy consensus rating, though several firms have trimmed price targets, and the average target is $185.03 versus the stock’s recent $130.80 price.

Healthcare of Ontario Pension Plan Trust Fund reduced its holdings in shares of Workday, Inc. (NASDAQ:WDAY - Free Report) by 5.1% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 381,807 shares of the software maker's stock after selling 20,518 shares during the quarter. Healthcare of Ontario Pension Plan Trust Fund owned 0.15% of Workday worth $82,005,000 at the end of the most recent quarter.

Several other institutional investors also recently bought and sold shares of the business. Rakuten Securities Inc. purchased a new position in shares of Workday in the second quarter valued at $25,000. Measured Wealth Private Client Group LLC acquired a new stake in Workday in the third quarter valued at $26,000. DT Investment Partners LLC acquired a new stake in Workday in the fourth quarter valued at $27,000. LRI Investments LLC acquired a new stake in Workday in the fourth quarter valued at $29,000. Finally, JPL Wealth Management LLC acquired a new stake in Workday in the third quarter valued at $30,000. 89.81% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research firms recently issued reports on WDAY. Needham & Company LLC cut their price target on shares of Workday from $300.00 to $180.00 and set a "buy" rating on the stock in a report on Friday, May 22nd. Weiss Ratings cut shares of Workday from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, March 20th. HC Wainwright set a $140.00 price target on shares of Workday in a report on Wednesday, May 27th. Morgan Stanley cut their price target on shares of Workday from $280.00 to $200.00 and set an "equal weight" rating on the stock in a report on Monday, February 23rd. Finally, Wall Street Zen raised shares of Workday from a "hold" rating to a "buy" rating in a report on Saturday, March 28th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, fifteen have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $185.03.

Workday Price Performance

WDAY stock opened at $130.80 on Monday. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.30. Workday, Inc. has a fifty-two week low of $110.36 and a fifty-two week high of $249.85. The firm's 50-day simple moving average is $128.10 and its 200 day simple moving average is $159.55. The stock has a market cap of $32.31 billion, a PE ratio of 40.88, a price-to-earnings-growth ratio of 1.39 and a beta of 1.09.

Workday (NASDAQ:WDAY - Get Free Report) last released its quarterly earnings data on Thursday, May 21st. The software maker reported $2.66 earnings per share for the quarter, topping analysts' consensus estimates of $2.51 by $0.15. Workday had a net margin of 8.60% and a return on equity of 14.75%. The business had revenue of $2.54 billion for the quarter, compared to analysts' expectations of $2.52 billion. During the same quarter last year, the company earned $2.23 EPS. The company's revenue for the quarter was up 13.5% compared to the same quarter last year. As a group, sell-side analysts predict that Workday, Inc. will post 5.4 EPS for the current year.

Insiders Place Their Bets

In related news, CAO Mark S. Garfield sold 1,585 shares of the stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $113.05, for a total value of $179,184.25. Following the sale, the chief accounting officer owned 31,467 shares of the company's stock, valued at $3,557,344.35. This trade represents a 4.80% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Zane Rowe sold 6,000 shares of the stock in a transaction dated Tuesday, April 7th. The stock was sold at an average price of $128.22, for a total transaction of $769,320.00. Following the completion of the sale, the chief financial officer directly owned 217,930 shares in the company, valued at approximately $27,942,984.60. This trade represents a 2.68% decrease in their position. The SEC filing for this sale provides additional information. 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. Over the last 90 days, insiders have sold 774,814 shares of company stock worth $102,709,316. 18.64% of the stock is owned by company insiders.

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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