M&T Bank Corp Boosts Holdings in Workday, Inc. $WDAY

Key Points

• M&T Bank Corp increased its stake in Workday by 178.5% in Q4, purchasing 27,603 shares to hold 43,071 shares valued at about $9.25 million.
• Several analysts trimmed price targets (e.g., Sanford Bernstein to $214, Wells Fargo to $180), but the consensus remains a “Moderate Buy” with an average target of $199.71.
• Workday beat Q4 expectations with EPS of $2.47 vs. $2.32 and revenue of $2.53B (up 14.5% YoY), though insiders have sold heavily recently (989,814 shares worth $131.6M over 90 days).

M&T Bank Corp raised its holdings in Workday, Inc. (NASDAQ:WDAY - Free Report) by 178.5% during the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 43,071 shares of the software maker's stock after purchasing an additional 27,603 shares during the quarter. M&T Bank Corp's holdings in Workday were worth $9,251,000 at the end of the most recent reporting period.

Other hedge funds also recently added to or reduced their stakes in the company. Rakuten Securities Inc. acquired a new position in shares of Workday in the second quarter worth about $25,000. Measured Wealth Private Client Group LLC acquired a new position in shares of Workday in the third quarter worth about $26,000. JPL Wealth Management LLC acquired a new position in shares of Workday in the third quarter worth about $30,000. Thurston Springer Miller Herd & Titak Inc. acquired a new position in shares of Workday in the fourth quarter worth about $36,000. Finally, eCIO Inc. acquired a new position in shares of Workday in the fourth quarter worth about $36,000. 89.81% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of research analysts have weighed in on WDAY shares. Sanford C. Bernstein decreased their price objective on shares of Workday from $298.00 to $214.00 and set an "outperform" rating for the company in a research report on Wednesday, February 25th. JPMorgan Chase & Co. reduced their price target on shares of Workday from $270.00 to $230.00 and set an "overweight" rating for the company in a research report on Tuesday, February 24th. Wells Fargo & Company reduced their price target on shares of Workday from $255.00 to $180.00 and set an "overweight" rating for the company in a research report on Wednesday, February 25th. Robert W. Baird set a $195.00 price target on shares of Workday in a research report on Tuesday, February 24th. Finally, Barclays reduced their price target on shares of Workday from $230.00 to $200.00 and set an "overweight" rating for the company in a research report on Wednesday, February 25th. Nineteen investment analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Workday has a consensus rating of "Moderate Buy" and a consensus price target of $199.71.

Workday Stock Up 4.4%

WDAY opened at $119.76 on Friday. Workday, Inc. has a twelve month low of $110.36 and a twelve month high of $276.00. The company has a quick ratio of 1.32, a current ratio of 1.32 and a debt-to-equity ratio of 0.38. The company has a 50-day moving average price of $131.74 and a 200 day moving average price of $183.93. The company has a market cap of $30.78 billion, a PE ratio of 46.42, a price-to-earnings-growth ratio of 1.11 and a beta of 1.14.

Workday (NASDAQ:WDAY - Get Free Report) last released its quarterly earnings results on Tuesday, February 24th. The software maker reported $2.47 earnings per share for the quarter, topping the consensus estimate of $2.32 by $0.15. The firm had revenue of $2.53 billion during the quarter, compared to the consensus estimate of $2.52 billion. Workday had a net margin of 7.26% and a return on equity of 13.37%. The company's revenue for the quarter was up 14.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.92 EPS. Sell-side analysts expect that Workday, Inc. will post 5.11 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Workday news, CFO Zane Rowe sold 6,000 shares of the stock in a transaction dated Tuesday, April 7th. The shares were sold at an average price of $128.22, for a total value of $769,320.00. Following the completion of the sale, the chief financial officer owned 217,930 shares in the company, valued at approximately $27,942,984.60. This represents a 2.68% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Robert Enslin sold 5,373 shares of the stock in a transaction dated Monday, April 6th. The shares were sold at an average price of $129.41, for a total transaction of $695,319.93. Following the completion of the sale, the insider owned 165,414 shares of the company's stock, valued at approximately $21,406,225.74. The trade was a 3.15% 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 989,814 shares of company stock worth $131,576,291 in the last 90 days. Corporate insiders own 19.31% of the company's stock.

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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