Prescott Group Capital Management L.L.C. Buys Shares of 13,829 Workday, Inc. $WDAY

Key Points

• Prescott Group Capital Management disclosed a new fourth-quarter stake in Workday, buying 13,829 shares worth about $2.97 million.
• Workday reported better-than-expected quarterly results, with EPS of $2.47 and revenue of $2.53 billion, while revenue rose 14.5% year over year.
• Analysts remain generally constructive but have trimmed targets: Workday still has a Moderate Buy consensus, though several firms lowered price targets amid recent stock weakness.

Prescott Group Capital Management L.L.C. bought a new stake in Workday, Inc. (NASDAQ:WDAY - Free Report) during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 13,829 shares of the software maker's stock, valued at approximately $2,970,000.

Several other hedge funds have also recently added to or reduced their stakes in WDAY. Rakuten Securities Inc. acquired a new position in Workday in the second quarter valued at about $25,000. Measured Wealth Private Client Group LLC acquired a new position in Workday in the third quarter valued at about $26,000. LRI Investments LLC acquired a new position in Workday in the fourth quarter valued at about $29,000. JPL Wealth Management LLC acquired a new position in Workday in the third quarter valued at about $30,000. Finally, eCIO Inc. acquired a new position in Workday in the fourth quarter valued at about $36,000. Institutional investors and hedge funds own 89.81% of the company's stock.

Workday Stock Down 2.1%

NASDAQ:WDAY opened at $126.61 on Thursday. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.32 and a current ratio of 1.32. The company has a market cap of $32.54 billion, a PE ratio of 49.07, a PEG ratio of 1.26 and a beta of 1.04. Workday, Inc. has a 52-week low of $110.36 and a 52-week high of $274.11. The stock has a 50-day simple moving average of $126.51 and a 200 day simple moving average of $170.40.

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

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the company. Cantor Fitzgerald lowered their price target on Workday from $200.00 to $160.00 and set an "overweight" rating for the company in a report on Wednesday. BTIG Research restated a "buy" rating and issued a $175.00 price target on shares of Workday in a report on Monday. Barclays lowered their price target on Workday from $230.00 to $200.00 and set an "overweight" rating for the company in a report on Wednesday, February 25th. Wells Fargo & Company lowered their price target on Workday from $255.00 to $180.00 and set an "overweight" rating for the company in a report on Wednesday, February 25th. Finally, Deutsche Bank Aktiengesellschaft lowered their price target on Workday from $265.00 to $190.00 and set a "buy" rating for the company in a report on Wednesday, February 18th. Nineteen research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $198.42.

Insider Transactions at Workday

In related news, major shareholder David A. Duffield sold 107,500 shares of the stock in a transaction dated Tuesday, March 31st. The stock was sold at an average price of $129.76, for a total transaction of $13,949,200.00. Following the completion of the transaction, the insider directly owned 105,049 shares in the company, valued at approximately $13,631,158.24. This trade represents a 50.58% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Gerrit S. Kazmaier sold 9,356 shares of the stock in a transaction dated Tuesday, April 7th. The stock was sold at an average price of $128.39, for a total value of $1,201,216.84. Following the transaction, the insider owned 165,074 shares of the company's stock, valued at approximately $21,193,850.86. The trade was a 5.36% 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. Over the last quarter, insiders have sold 989,814 shares of company stock valued at $131,576,291. 18.64% of the stock is owned by corporate insiders.

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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