Royal Bank of Canada Boosts Stock Position in Workday, Inc. $WDAY

Key Points

• The Royal Bank of Canada increased its investment in Workday, Inc. by 20.8%, acquiring 195,951 shares, leading to a total holding of 1,138,675 shares valued at approximately $265.9 million.
• Insider trading activity includes significant sales by David A. Duffield, who sold 73,971 shares, representing a 41.80% decrease in his stake.
• Analysts are optimistic about Workday's future, with a consensus rating of "Moderate Buy" and an average price target of $286.81, despite a range of target adjustments from various financial institutions.

Royal Bank of Canada lifted its stake in shares of Workday, Inc. (NASDAQ:WDAY - Free Report) by 20.8% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,138,675 shares of the software maker's stock after acquiring an additional 195,951 shares during the quarter. Royal Bank of Canada owned approximately 0.43% of Workday worth $265,915,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors have also bought and sold shares of WDAY. Nuveen LLC acquired a new position in Workday in the first quarter valued at approximately $456,341,000. T. Rowe Price Investment Management Inc. grew its position in shares of Workday by 47.5% during the 1st quarter. T. Rowe Price Investment Management Inc. now owns 3,764,598 shares of the software maker's stock worth $879,147,000 after buying an additional 1,211,659 shares during the period. Hotchkis & Wiley Capital Management LLC increased its stake in shares of 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 in the last quarter. Contour Asset Management LLC acquired a new position in shares of Workday during the 4th quarter valued at $183,516,000. Finally, GAMMA Investing LLC boosted its stake in Workday by 53,267.5% during the first quarter. GAMMA Investing LLC now owns 658,555 shares of the software maker's stock worth $153,792,000 after acquiring an additional 657,321 shares in the last quarter. Institutional investors and hedge funds own 89.81% of the company's stock.

Workday Price Performance

NASDAQ WDAY traded down $2.30 on Thursday, hitting $231.13. The stock had a trading volume of 2,226,795 shares, compared to its average volume of 3,924,129. The company has a market capitalization of $61.71 billion, a price-to-earnings ratio of 107.01, a price-to-earnings-growth ratio of 3.25 and a beta of 1.12. Workday, Inc. has a 52-week low of $205.33 and a 52-week high of $294.00. The firm has a 50-day moving average of $230.64 and a 200-day moving average of $240.41. The company has a debt-to-equity ratio of 0.33, a quick ratio of 2.10 and a current ratio of 2.10.

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

Insider Activity at Workday

In related news, CAO Mark S. Garfield sold 451 shares of the stock in a transaction on Thursday, July 10th. The stock was sold at an average price of $234.86, for a total value of $105,921.86. Following the transaction, the chief accounting officer owned 42,977 shares of the company's stock, valued at $10,093,578.22. This represents a 1.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, major shareholder David A. Duffield sold 72,551 shares of the business's stock in a transaction that occurred on Tuesday, July 8th. The stock was sold at an average price of $239.61, for a total value of $17,383,945.11. Following the completion of the sale, the insider owned 102,997 shares of the company's stock, valued at $24,679,111.17. The trade was a 41.33% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 318,380 shares of company stock valued at $76,586,604. 19.31% of the stock is currently owned by insiders.

Analysts Set New Price Targets

WDAY has been the subject of several research analyst reports. Canaccord Genuity Group decreased their price target on shares of Workday from $330.00 to $275.00 and set a "buy" rating for the company in a research note on Friday, August 22nd. Deutsche Bank Aktiengesellschaft reduced their target price on Workday from $330.00 to $280.00 and set a "buy" rating for the company in a research note on Friday, August 22nd. JMP Securities reaffirmed a "market outperform" rating and set a $315.00 price target on shares of Workday in a research note on Friday, August 22nd. Oppenheimer reduced their price objective on Workday from $300.00 to $270.00 and set an "outperform" rating for the company in a research note on Friday, August 22nd. Finally, Barclays lowered their price objective on Workday from $321.00 to $298.00 and set an "overweight" rating for the company in a research note on Monday, August 18th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $286.81.

Workday 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.