Plato Investment Management Ltd Takes Position in Workday, Inc. $WDAY

Key Points

• Plato Investment Management acquired 9,163 Workday shares in the second quarter, valued at approximately $1.115 million. Institutional investors collectively own 89.81% of the company.
• Workday’s latest quarterly results exceeded expectations, with EPS of $2.66 versus the $2.51 consensus and revenue of $2.54 billion, up 13.5% year over year.
• Analyst sentiment remains mixed: Workday has a “Moderate Buy” consensus and an average price target of $187.36, while downgrades and skepticism about a potential Silver Lake acquisition highlight valuation and deal-related risks.

Plato Investment Management Ltd acquired a new position in Workday, Inc. (NASDAQ:WDAY - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund acquired 9,163 shares of the software maker's stock, valued at approximately $1,115,000.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Rakuten Securities Inc. purchased a new stake in shares of Workday during the 2nd quarter worth $25,000. Measured Wealth Private Client Group LLC purchased a new position in Workday in the third quarter valued at about $26,000. DT Investment Partners LLC bought a new position in Workday in the fourth quarter worth about $27,000. LRI Investments LLC bought a new position in Workday in the fourth quarter worth about $29,000. Finally, JPL Wealth Management LLC purchased a new stake in shares of Workday during the third quarter valued at about $30,000. Institutional investors own 89.81% of the company's stock.

Workday Trading Down 0.3%

Shares of Workday stock opened at $190.63 on Wednesday. The firm's 50 day simple moving average is $146.36 and its two-hundred day simple moving average is $138.97. The firm has a market capitalization of $47.09 billion, a price-to-earnings ratio of 59.57, a PEG ratio of 2.11 and a beta of 1.08. Workday, Inc. has a 12-month low of $110.36 and a 12-month high of $249.85. 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 quarterly earnings data on Thursday, May 21st. The software maker reported $2.66 EPS for the quarter, topping the consensus estimate of $2.51 by $0.15. The business had revenue of $2.54 billion during the quarter, compared to the consensus estimate of $2.52 billion. Workday had a net margin of 8.60% and a return on equity of 14.75%. The business's revenue for the quarter was up 13.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.23 earnings per share. Analysts predict that Workday, Inc. will post 5.38 EPS for the current year.

Insider Buying and Selling

In other news, insider Robert Enslin sold 5,374 shares of the stock in a transaction dated Sunday, July 5th. The stock was sold at an average price of $134.90, for a total value of $724,952.60. Following the transaction, the insider directly owned 239,469 shares of the company's stock, valued at approximately $32,304,368.10. This represents a 2.19% decrease in their ownership of the stock. The sale was disclosed in a document filed 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, CFO Zane Rowe sold 6,000 shares of the firm's stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $143.70, for a total value of $862,200.00. Following the completion of the transaction, the chief financial officer owned 288,460 shares of the company's stock, valued at approximately $41,451,702. The trade was a 2.04% 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 875,020 shares of company stock worth $113,938,503 in the last 90 days. Insiders own 18.64% of the company's stock.

Key Workday News

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Reports of Silver Lake’s possible approach continue to support Workday’s valuation and have renewed expectations that software mergers and acquisitions could accelerate. KeyBanc cited private-equity interest, available capital and pressure to consolidate as potential catalysts for broader technology deal activity. Analyst lists 3 reasons why tech M&A may accelerate
• Positive Sentiment: Strong demand for Workday-related services is providing a supporting signal for the company’s ecosystem. Kainos said its Workday and digital divisions are sustaining double-digit growth and expects annual revenue and adjusted profit to exceed market forecasts. Kainos signals profit upgrade
• Neutral Sentiment: Workday’s standalone investment case remains under review. Analysts note that revenue growth is continuing, but investors increasingly want evidence that the company can deliver attractive long-term returns even if Silver Lake does not proceed with a buyout. Where Will Workday Stock Be in 5 Years If Silver Lake Doesn't Buy It?
• Neutral Sentiment: Piper Sandler reiterated its neutral rating, while another analyst report discussed Workday alongside other technology companies. A separate price-target report raised its target to $215, indicating some analysts still see upside, although the target remains below the levels implied by a full takeover premium. Workday Price Target Raised
• Negative Sentiment: Deutsche Bank downgraded Workday to Hold, and BTIG cut its rating from Buy to Neutral. The firms cited valuation risk after the stock’s substantial rally and argued that current prices assume stronger growth and a likely acquisition. Deutsche Bank Just Downgraded Workday Stock
• Negative Sentiment: UBS analysts expressed skepticism that Silver Lake will ultimately acquire Workday, reducing confidence in the takeover-driven rally. The combination of deal uncertainty and elevated growth expectations has prompted investors to take profits and contributed to the recent decline in WDAY. Why This Analyst Is Skeptical Of Workday-Silver Lake Deal

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the stock. Monness Crespi & Hardt lifted their price objective on shares of Workday from $150.00 to $202.00 and gave the stock a "buy" rating in a research report on Monday, August 10th. Weiss Ratings upgraded shares of Workday from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday, August 13th. William Blair raised shares of Workday to a "strong-buy" rating in a report on Friday, May 22nd. Jefferies Financial Group upped their price target on Workday from $140.00 to $205.00 and gave the stock a "hold" rating in a research report on Friday. Finally, TD Cowen reiterated a "hold" rating on shares of Workday in a report on Friday, May 22nd. One research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, fifteen have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $187.36.

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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