Junto Capital Management LP Buys New Stake in Workday, Inc. $WDAY

Key Points

• Junto Capital Management acquired 367,587 Workday shares worth approximately $45 million, representing about 0.15% of the company. Institutional investors collectively own 89.81% of Workday.
• Insiders sold 845,596 shares valued at roughly $119.9 million over the past 90 days, including major shareholder David Duffield’s $13.1 million sale; the transactions were conducted under pre-arranged trading plans.
• Workday exceeded quarterly expectations with adjusted EPS of $2.75 versus $2.61 expected and revenue of $2.65 billion, up 12.8% year over year. Analysts maintain a consensus “Hold” rating with an average price target of $206.34.

Junto Capital Management LP purchased a new position in Workday, Inc. (NASDAQ:WDAY - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 367,587 shares of the software maker's stock, valued at approximately $45,000,000. Junto Capital Management LP owned approximately 0.15% of Workday as of its most recent SEC filing.

Several other large investors also recently modified their holdings of the stock. Brighton Jones LLC grew its position in Workday by 230.2% in the fourth quarter. Brighton Jones LLC now owns 4,005 shares of the software maker's stock valued at $1,033,000 after acquiring an additional 2,792 shares during the period. Empowered Funds LLC lifted its holdings in shares of Workday by 12.1% during the first quarter. Empowered Funds LLC now owns 11,142 shares of the software maker's stock valued at $2,602,000 after acquiring an additional 1,206 shares during the period. Geneos Wealth Management Inc. lifted its holdings in shares of Workday by 211.7% during the first quarter. Geneos Wealth Management Inc. now owns 187 shares of the software maker's stock valued at $44,000 after acquiring an additional 127 shares during the period. Sivia Capital Partners LLC acquired a new stake in shares of Workday in the 2nd quarter valued at $281,000. Finally, NewEdge Advisors LLC boosted its stake in shares of Workday by 32.0% in the 2nd quarter. NewEdge Advisors LLC now owns 6,597 shares of the software maker's stock valued at $1,583,000 after purchasing an additional 1,600 shares in the last quarter. 89.81% of the stock is currently owned by institutional investors.

Insider Activity at Workday

In other Workday news, major shareholder David A. Duffield sold 107,500 shares of the company's stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $122.04, for a total transaction of $13,119,300.00. Following the transaction, the insider directly owned 105,049 shares in the company, valued at approximately $12,820,179.96. This represents a 50.58% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Enslin sold 5,374 shares of the firm's stock in a transaction dated Sunday, July 5th. The shares were sold at an average price of $134.90, for a total transaction of $724,952.60. Following the completion of the transaction, the insider directly owned 239,469 shares in the company, valued at $32,304,368.10. This trade 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 a total of 845,596 shares of company stock worth $119,870,637 over the last 90 days. Insiders own 18.64% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on WDAY. Cantor Fitzgerald dropped their target price on shares of Workday from $220.00 to $205.00 and set an "overweight" rating for the company in a research report on Friday, August 28th. Bank of America boosted their price target on shares of Workday from $140.00 to $205.00 and gave the company a "neutral" rating in a research report on Wednesday, August 19th. The Goldman Sachs Group upped their price objective on shares of Workday from $151.00 to $164.00 and gave the stock a "neutral" rating in a research note on Monday, August 31st. Stifel Nicolaus raised their price objective on shares of Workday from $115.00 to $160.00 and gave the stock a "hold" rating in a report on Friday, August 28th. Finally, CLSA started coverage on shares of Workday in a research note on Monday, July 20th. They issued an "underperform" rating and a $92.00 target price for the company. Twenty research analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $206.34.

Workday Price Performance

WDAY opened at $186.05 on Thursday. The company has a debt-to-equity ratio of 0.31, a current ratio of 0.91 and a quick ratio of 0.91. The stock has a market capitalization of $44.84 billion, a P/E ratio of 37.74, a price-to-earnings-growth ratio of 1.88 and a beta of 1.08. The company's 50 day simple moving average is $169.85 and its 200-day simple moving average is $143.60. Workday, Inc. has a one year low of $110.36 and a one year high of $249.85.

Workday (NASDAQ:WDAY - Get Free Report) last posted its quarterly earnings data on Thursday, August 27th. The software maker reported $2.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.61 by $0.14. The firm had revenue of $2.65 billion for the quarter, compared to the consensus estimate of $2.64 billion. Workday had a return on equity of 20.95% and a net margin of 12.32%.The business's revenue for the quarter was up 12.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.21 EPS. Sell-side analysts anticipate that Workday, Inc. will post 5.3 earnings per share for the current fiscal year.

Workday Profile

Workday, Inc develops cloud-based enterprise software designed to help organizations manage finance, human resources and related business operations. Its platform provides tools for financial management, accounting, procurement, expenses, payroll, workforce management, recruiting, talent management, employee experience and enterprise planning.

The company also offers analytics, reporting and artificial intelligence capabilities that support budgeting, forecasting, workforce planning and business decision-making.

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