Otter Creek Advisors LLC Invests $3.65 Million in Workday, Inc. $WDAY

Key Points

• Otter Creek Advisors LLC invested approximately $3.65 million in Workday, acquiring 15,217 shares, making it the 21st largest holding in their portfolio.
• Major institutional investors, including Vanguard Group Inc. and T. Rowe Price Investment Management Inc., have also significantly increased their positions in Workday.
• Workday reported a quarterly earnings per share (EPS) of $2.21 which surpassed the consensus estimate of $2.09, indicating a year-over-year revenue increase of 12.6%.

Otter Creek Advisors LLC bought a new position in shares of Workday, Inc. (NASDAQ:WDAY - Free Report) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 15,217 shares of the software maker's stock, valued at approximately $3,652,000. Workday makes up about 2.6% of Otter Creek Advisors LLC's investment portfolio, making the stock its 21st largest holding.

A number of other hedge funds and other institutional investors have also made changes to their positions in the company. Vanguard Group Inc. increased its position in shares of Workday by 2.3% during the first quarter. Vanguard Group Inc. now owns 20,598,655 shares of the software maker's stock worth $4,810,404,000 after purchasing an additional 455,855 shares in the last quarter. T. Rowe Price Investment Management Inc. increased its position in shares of Workday by 47.5% during the first quarter. T. Rowe Price Investment Management Inc. now owns 3,764,598 shares of the software maker's stock worth $879,147,000 after purchasing an additional 1,211,659 shares in the last quarter. The Manufacturers Life Insurance Company increased its position in Workday by 0.4% in the 1st quarter. The Manufacturers Life Insurance Company now owns 3,736,609 shares of the software maker's stock valued at $872,610,000 after acquiring an additional 14,354 shares during the period. Hotchkis & Wiley Capital Management LLC increased its position in Workday by 35.6% in the 1st quarter. Hotchkis & Wiley Capital Management LLC now owns 3,479,105 shares of the software maker's stock valued at $812,475,000 after acquiring an additional 913,613 shares during the period. Finally, Parnassus Investments LLC increased its position in Workday by 22.4% in the 1st quarter. Parnassus Investments LLC now owns 2,996,429 shares of the software maker's stock valued at $699,756,000 after acquiring an additional 548,694 shares during the period. Institutional investors and hedge funds own 89.81% of the company's stock.

Analyst Ratings Changes

Several equities analysts recently issued reports on the company. UBS Group set a $304.00 price target on Workday in a research report on Friday, August 22nd. Bank of America dropped their price target on Workday from $295.00 to $278.00 and set a "buy" rating on the stock in a research report on Tuesday, August 19th. Weiss Ratings restated a "hold (c)" rating on shares of Workday in a research report on Wednesday, October 8th. JPMorgan Chase & Co. dropped their price target on Workday from $295.00 to $290.00 and set an "overweight" rating on the stock in a research report on Friday, August 22nd. Finally, Needham & Company LLC restated a "buy" rating and issued a $300.00 price target on shares of Workday in a research report on Wednesday, September 17th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $287.83.

Workday Stock Performance

NASDAQ WDAY opened at $234.25 on Friday. The company has a current ratio of 2.10, a quick ratio of 2.10 and a debt-to-equity ratio of 0.33. The business's 50 day moving average is $231.31 and its two-hundred day moving average is $236.75. Workday, Inc. has a 12-month low of $205.33 and a 12-month high of $294.00. The stock has a market capitalization of $62.54 billion, a price-to-earnings ratio of 108.45, a PEG ratio of 2.84 and a beta of 1.10.

Workday (NASDAQ:WDAY - Get Free Report) last released its earnings results on Thursday, August 21st. The software maker reported $2.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.09 by $0.12. Workday had a return on equity of 9.74% and a net margin of 6.51%.The company had revenue of $2.35 billion for the quarter, compared to analysts' expectations of $2.34 billion. During the same quarter in the previous year, the firm posted $1.75 EPS. The firm's quarterly revenue was up 12.6% on a year-over-year basis. Workday has set its FY 2026 guidance at EPS. Q3 2026 guidance at EPS. Research analysts expect that Workday, Inc. will post 2.63 EPS for the current year.

Insider Activity at Workday

In other news, CFO Zane Rowe sold 6,000 shares of the business's stock in a transaction that occurred on Tuesday, October 7th. The stock was sold at an average price of $232.62, for a total transaction of $1,395,720.00. Following the sale, the chief financial officer owned 168,468 shares of the company's stock, valued at $39,189,026.16. The trade was a 3.44% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Carl M. Eschenbach sold 6,250 shares of the business's stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $237.52, for a total value of $1,484,500.00. Following the sale, the chief executive officer directly owned 20,222 shares in the company, valued at $4,803,129.44. This trade represents a 23.61% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 264,933 shares of company stock worth $61,475,760 in the last three months. 19.31% of the stock is currently owned by corporate insiders.

Workday Company Profile

Workday, Inc provides enterprise cloud applications in the United States and internationally. Its applications help its customers to plan, execute, analyze, and extend to other applications and environments to manage their business and operations. The company offers a suite of financial management applications to maintain accounting information in the general ledger; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; enhance financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations.

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