Lead Edge Capital Management LLC Purchases New Holdings in Workday, Inc. $WDAY

Key Points

• Lead Edge Capital Management opened a new position in Workday, buying 615,670 shares worth about $80 million. The stake is now its largest holding, representing 19.6% of the fund’s portfolio.
• Workday’s latest quarterly results were solid, with EPS of $2.66 beating estimates and revenue of $2.54 billion topping forecasts. Revenue also rose 13.5% year over year.
• Despite recent insider sales, Wall Street remains broadly constructive: analysts rate Workday Moderate Buy on average, with a consensus price target of $179.80.

Lead Edge Capital Management LLC acquired a new position in shares of Workday, Inc. (NASDAQ:WDAY - Free Report) in the 1st quarter, according to its most recent filing with the SEC. The fund acquired 615,670 shares of the software maker's stock, valued at approximately $79,988,000. Workday makes up 19.6% of Lead Edge Capital Management LLC's holdings, making the stock its largest position. Lead Edge Capital Management LLC owned 0.24% of Workday at the end of the most recent quarter.

Other institutional investors have also recently made changes to their positions in the company. Rakuten Securities Inc. acquired a new stake in Workday during the 2nd quarter worth $25,000. Measured Wealth Private Client Group LLC acquired a new stake in Workday during the third quarter worth $26,000. DT Investment Partners LLC purchased a new stake in shares of Workday in the 4th quarter valued at approximately $27,000. LRI Investments LLC acquired a new position in Workday during the 4th quarter worth about $29,000. Finally, JPL Wealth Management LLC acquired a new stake in Workday during the 3rd quarter worth approximately $30,000. 89.81% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other Workday news, CFO Zane Rowe sold 6,000 shares of the stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $143.70, for a total value of $862,200.00. Following the completion of the sale, the chief financial officer owned 288,460 shares of the company's stock, valued at $41,451,702. This trade represents a 2.04% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 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, insider Robert Enslin sold 5,374 shares of Workday stock in a transaction that occurred on Sunday, July 5th. The shares were sold at an average price of $134.90, for a total transaction of $724,952.60. Following the sale, the insider 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. In the last ninety days, insiders have sold 875,020 shares of company stock valued at $113,938,503. Corporate insiders own 18.64% of the company's stock.

Workday Stock Up 5.8%

Shares of NASDAQ:WDAY opened at $135.34 on Friday. Workday, Inc. has a 1 year low of $110.36 and a 1 year high of $249.85. The stock has a 50-day simple moving average of $133.13 and a 200-day simple moving average of $141.84. The stock has a market capitalization of $33.43 billion, a P/E ratio of 42.29, a PEG ratio of 1.44 and a beta of 1.11. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.01 and a current ratio of 1.01.

Workday (NASDAQ:WDAY - Get Free Report) last posted its earnings results on Thursday, May 21st. The software maker reported $2.66 earnings per share for the quarter, beating the consensus estimate 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 analyst estimates of $2.52 billion. During the same quarter in the previous year, the business posted $2.23 EPS. The business's quarterly revenue was up 13.5% on a year-over-year basis. Equities analysts forecast that Workday, Inc. will post 5.38 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on WDAY shares. Cantor Fitzgerald reiterated an "overweight" rating on shares of Workday in a report on Wednesday, June 17th. BMO Capital Markets reiterated an "outperform" rating on shares of Workday in a research note on Friday, May 22nd. Needham & Company LLC reduced their target price on Workday from $300.00 to $180.00 and set a "buy" rating for the company in a report on Friday, May 22nd. CLSA assumed coverage on Workday in a report on Monday, July 20th. They issued an "underperform" rating and a $92.00 price target on the stock. Finally, Citigroup restated a "market perform" rating on shares of Workday in a report on Friday, May 22nd. One investment analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, thirteen have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, Workday currently has an average rating of "Moderate Buy" and an average price target of $179.80.

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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