Norges Bank Makes New $448.80 Million Investment in Workday, Inc. $WDAY

Key Points

• Norges Bank disclosed a new stake in Workday during the fourth quarter, buying 2,089,600 shares worth about $448.8 million. The position represented roughly 0.79% of Workday’s shares outstanding.
• Several other large investors also adjusted their Workday holdings, including a major new position from First Eagle Investment Management and sizable increases from Robeco and Temasek. Overall, institutional investors and hedge funds own 89.81% of the company.
• Workday reported strong quarterly results, with EPS of $2.66 beating estimates and revenue rising 13.5% year over year to $2.54 billion. The stock was also up 7.6% in the session, while analysts maintained a Moderate Buy consensus and a $185.03 average target price.

Norges Bank purchased a new position in Workday, Inc. (NASDAQ:WDAY - Free Report) during the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund purchased 2,089,600 shares of the software maker's stock, valued at approximately $448,804,000. Norges Bank owned approximately 0.79% of Workday as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors have also modified their holdings of the company. First Eagle Investment Management LLC acquired a new position in shares of Workday in the third quarter worth about $556,252,000. Robeco Institutional Asset Management B.V. lifted its stake in shares of Workday by 18.3% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 571,766 shares of the software maker's stock worth $122,804,000 after acquiring an additional 88,384 shares in the last quarter. Morningstar Investment Management LLC lifted its stake in shares of Workday by 127.2% in the fourth quarter. Morningstar Investment Management LLC now owns 27,043 shares of the software maker's stock worth $5,808,000 after acquiring an additional 15,138 shares in the last quarter. Sienna Gestion acquired a new position in shares of Workday in the third quarter worth about $7,948,000. Finally, Temasek Holdings Private Ltd lifted its stake in shares of Workday by 2,822.7% in the third quarter. Temasek Holdings Private Ltd now owns 522,383 shares of the software maker's stock worth $125,753,000 after acquiring an additional 504,510 shares in the last quarter. Institutional investors and hedge funds own 89.81% of the company's stock.

Insider Buying and Selling

In related news, major shareholder David A. Duffield sold 107,500 shares of the stock in a transaction that occurred on Tuesday, March 31st. The stock was sold at an average price of $129.76, for a total value of $13,949,200.00. Following the completion of the transaction, the insider directly owned 105,049 shares of the company's stock, valued at $13,631,158.24. This represents a 50.58% decrease in their position. The sale was disclosed in a filing with the SEC, which is available 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 that occurred on Tuesday, April 7th. The stock was sold at an average price of $128.22, for a total value of $769,320.00. Following the completion of the transaction, the chief financial officer directly owned 217,930 shares of the company's stock, valued at $27,942,984.60. This trade represents a 2.68% decrease in their ownership of the stock. 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. Insiders sold 882,314 shares of company stock valued at $117,128,291 in the last three months. 18.64% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

WDAY has been the topic of several research reports. TD Cowen restated a "hold" rating on shares of Workday in a research note on Friday, May 22nd. Citizens Jmp cut Workday from an "outperform" rating to a "market perform" rating in a research note on Wednesday, February 18th. Rosenblatt Securities cut their price objective on Workday from $180.00 to $150.00 and set a "buy" rating on the stock in a research note on Wednesday, February 25th. Weiss Ratings cut Workday from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, March 20th. Finally, Stifel Nicolaus set a $175.00 price objective on Workday in a research note on Monday, February 9th. One research 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 issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $185.03.

Workday Stock Up 7.6%

NASDAQ:WDAY opened at $157.23 on Tuesday. The firm has a market capitalization of $38.84 billion, a PE ratio of 49.13, a price-to-earnings-growth ratio of 1.61 and a beta of 1.09. The stock has a 50 day moving average of $126.08 and a 200-day moving average of $164.85. Workday, Inc. has a 52 week low of $110.36 and a 52 week high of $257.09. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 0.30.

Workday (NASDAQ:WDAY - Get Free Report) last posted its earnings results on Thursday, May 21st. The software maker reported $2.66 EPS for the quarter, beating the consensus estimate of $2.51 by $0.15. The company had revenue of $2.54 billion during the quarter, compared to analyst estimates of $2.52 billion. Workday had a return on equity of 14.75% and a net margin of 8.60%.The business's revenue was up 13.5% compared to the same quarter last year. During the same period in the prior year, the company earned $2.23 earnings per share. Analysts predict that Workday, Inc. will post 5.18 EPS for the current year.

About Workday

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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