Neuberger Berman Group LLC Cuts Position in Workday, Inc. $WDAY

Key Points

• Institutional moves: Neuberger Berman trimmed its stake in Workday by 2% to 679,178 shares (≈$163.5M), while other large institutions (First Eagle, Rakuten, Norges Bank) established sizeable new positions, leaving about 89.8% of the stock held by institutions.
• Insider selling: Company insiders have been net sellers recently — including co‑founder David Duffield's 107,500‑share sale — with insiders disposing of roughly 395,796 shares (~$75.9M) last quarter, which could weigh on sentiment despite insiders still owning ~19.3%.
• Mixed analyst and performance backdrop: Workday beat the quarter (EPS $2.47 vs. $2.32; revenue $2.53B, +14.5% YoY) but faces several price‑target cuts and rating downgrades; consensus remains a "Moderate Buy" with a $205.19 target.

Neuberger Berman Group LLC cut its holdings in Workday, Inc. (NASDAQ:WDAY - Free Report) by 2.0% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 679,178 shares of the software maker's stock after selling 13,578 shares during the period. Neuberger Berman Group LLC owned about 0.25% of Workday worth $163,499,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently modified their holdings of the business. First Eagle Investment Management LLC purchased a new position in shares of Workday in the 3rd quarter worth about $556,252,000. PKO Investment Management Joint Stock Co bought a new position in Workday during the third quarter valued at about $1,805,000. Phoenix Financial Ltd. purchased a new stake in Workday during the third quarter worth about $2,000,000. Rakuten Investment Management Inc. purchased a new stake in Workday during the third quarter worth about $124,718,000. Finally, Norges Bank bought a new stake in Workday in the second quarter worth about $442,702,000. 89.81% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on WDAY shares. Raymond James Financial reiterated a "market perform" rating on shares of Workday in a research note on Monday, February 9th. Citizens Jmp cut shares of Workday from an "outperform" rating to a "market perform" rating in a report on Wednesday, February 18th. BTIG Research dropped their price objective on Workday from $230.00 to $175.00 and set a "buy" rating on the stock in a research note on Wednesday, February 25th. Jefferies Financial Group lowered Workday from a "buy" rating to a "hold" rating and reduced their price objective for the company from $325.00 to $150.00 in a report on Monday, February 23rd. Finally, BMO Capital Markets decreased their target price on Workday from $204.00 to $182.00 and set an "outperform" rating for the company in a research report on Wednesday, February 25th. Twenty analysts have rated the stock with a Buy rating and fifteen have given a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $205.19.

Insider Activity at Workday

In other Workday news, CFO Zane Rowe sold 6,000 shares of the firm's stock in a transaction on Tuesday, January 6th. The shares were sold at an average price of $208.75, for a total value of $1,252,500.00. Following the completion of the transaction, the chief financial officer directly owned 159,158 shares of the company's stock, valued at $33,224,232.50. This trade represents a 3.63% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Gerrit S. Kazmaier sold 6,547 shares of the business's stock in a transaction on Friday, December 19th. The shares were sold at an average price of $218.77, for a total transaction of $1,432,287.19. Following the transaction, the insider owned 111,353 shares of the company's stock, valued at $24,360,695.81. This trade represents a 5.55% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 395,796 shares of company stock valued at $75,909,516 in the last quarter. 19.31% of the stock is currently owned by company insiders.

Key Stories Impacting Workday

Here are the key news stories impacting Workday this week:

• Positive Sentiment: High‑profile endorsement for new leadership: TV host Jim Cramer called Workday’s new CEO “terrific,” which can boost investor sentiment and short‑term demand. Jim Cramer Considers Workday’s New CEO “Terrific”
• Positive Sentiment: Technical/flow support: recent bargain‑hunting and a short‑covering rally have driven quick gains after February’s pullback, attracting momentum traders. Workday (WDAY) Climbs 7.2% on Bargain-Hunting
• Positive Sentiment: Founder returns to CEO role with stronger AI emphasis — investors view this as a signal of strategic focus on AI product development, which could support longer‑term revenue expansion if execution succeeds. Workday Founder Returns As CEO While AI Focus Shapes Valuation Outlook
• Neutral Sentiment: Board granted CEO Aneel Bhusri a new equity package; this aligns leadership with shareholders but can raise dilution questions depending on structure. Workday Grants CEO Aneel Bhusri New Equity Package
• Neutral Sentiment: Macro backdrop remains a headwind for growth software names (inflation/higher rates), which can cap upside even during sector‑specific rallies. US Stock Market Today S&P 500 Futures Edge Lower On Stubborn Inflation Jitters
• Neutral Sentiment: Competitive landscape: emerging AI/analytics startups (e.g., Pigment) are targeting planning/analytics customers — something to monitor but not an immediate earnings threat. The French AI startup gunning for Workday, Oracle, and SAP
• Negative Sentiment: Analysts trimming targets: Citi cut its price target to $148 (from $247) and Morgan Stanley and others have reduced targets — a clear near‑term drag on sentiment and potential selling pressure. Workday, Inc. (WDAY) Price Target Lowered to $148 at Citi
• Negative Sentiment: Large insider sale: co‑founder David Duffield sold 107,500 shares (~$14.4M) and cut his stake roughly in half — markets can interpret this as a negative signal on insider conviction or simply liquidity‑driven. SEC Filing — Duffield Sale
• Negative Sentiment: Estimate‑revision risk: analyst commentary highlights slowing growth, margin pressure and falling EPS revisions as Workday invests in AI and new markets — a potential medium‑term headwind for valuations. Should You Avoid WDAY Stock Amid Declining Estimate Revisions?

Workday Stock Performance

Shares of WDAY opened at $151.04 on Friday. Workday, Inc. has a 52-week low of $117.76 and a 52-week high of $276.00. The stock's 50-day simple moving average is $172.17 and its 200 day simple moving average is $209.12. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.83 and a current ratio of 1.32. The stock has a market capitalization of $39.72 billion, a price-to-earnings ratio of 58.54, a price-to-earnings-growth ratio of 1.44 and a beta of 1.16.

Workday (NASDAQ:WDAY - Get Free Report) last posted its earnings results on Tuesday, February 24th. The software maker reported $2.47 earnings per share for the quarter, beating analysts' consensus estimates of $2.32 by $0.15. Workday had a return on equity of 13.37% and a net margin of 7.26%.The business had revenue of $2.53 billion during the quarter, compared to analyst estimates of $2.52 billion. During the same quarter in the previous year, the firm earned $1.92 EPS. The company's quarterly revenue was up 14.5% compared to the same quarter last year. Research analysts forecast that Workday, Inc. will post 2.63 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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