Workday, Inc. $WDAY Shares Acquired by Morningstar Investment Management LLC

Key Points

• Morningstar Investment Management LLC increased its Workday stake by 127.2% in the fourth quarter, ending with 27,043 shares valued at about $5.8 million.
• Institutional ownership remains very high, with 89.81% of Workday’s stock held by institutions and hedge funds. Several large investors, including Vanguard, also boosted their positions.
• Workday recently beat earnings expectations, posting Q1 EPS of $2.66 and revenue of $2.54 billion, while management raised full-year operating margin guidance to 30.5%, helping support the stock’s rebound.

Morningstar Investment Management LLC boosted its position in shares of Workday, Inc. (NASDAQ:WDAY - Free Report) by 127.2% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 27,043 shares of the software maker's stock after purchasing an additional 15,138 shares during the period. Morningstar Investment Management LLC's holdings in Workday were worth $5,808,000 at the end of the most recent reporting period.

Other large investors have also added to or reduced their stakes in the company. Vanguard Group Inc. grew its holdings in Workday by 14.7% during the 4th quarter. Vanguard Group Inc. now owns 25,009,288 shares of the software maker's stock worth $5,371,495,000 after acquiring an additional 3,210,232 shares in the last quarter. First Eagle Investment Management LLC acquired a new position in Workday during the 3rd quarter worth $556,252,000. Hotchkis & Wiley Capital Management LLC grew its holdings in Workday by 47.5% during the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 5,842,491 shares of the software maker's stock worth $1,406,463,000 after acquiring an additional 1,882,391 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Workday by 41.5% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 3,761,599 shares of the software maker's stock worth $905,530,000 after acquiring an additional 1,103,421 shares in the last quarter. Finally, Generation Investment Management LLP grew its holdings in Workday by 50.4% during the 3rd quarter. Generation Investment Management LLP now owns 3,087,395 shares of the software maker's stock worth $743,229,000 after acquiring an additional 1,034,589 shares in the last quarter. 89.81% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on WDAY. Needham & Company LLC decreased their price objective on shares of Workday from $300.00 to $180.00 and set a "buy" rating for the company in a report on Friday. Stifel Nicolaus set a $175.00 price objective on shares of Workday in a report on Monday, February 9th. Jefferies Financial Group raised their price objective on shares of Workday from $115.00 to $140.00 and gave the stock a "hold" rating in a report on Friday. UBS Group raised their price objective on shares of Workday from $130.00 to $140.00 and gave the stock a "neutral" rating in a report on Friday. Finally, Sanford C. Bernstein reissued an "outperform" rating and set a $216.00 price objective on shares of Workday in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $189.48.

Key Stories Impacting Workday

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Workday posted Q1 adjusted EPS of $2.66 versus estimates of $2.49, while revenue rose 13.5% year over year to $2.54 billion, topping forecasts. Workday Announces Fiscal 2027 First Quarter Financial Results
• Positive Sentiment: Management raised its full-year non-GAAP operating margin guidance to 30.5%, signaling stronger profitability and helping fuel the stock’s rebound. Workday pops as Q1 results guidance top estimates
• Positive Sentiment: Analysts highlighted growing AI monetization, noting that Workday’s AI features and agentic roadmap are starting to show up in contract value and customer adoption. Workday's AI Momentum Continues as Solid Q1 Results Posted, RBC Says
• Positive Sentiment: Several Wall Street firms responded with constructive commentary and price-target updates after the beat, reinforcing sentiment that the quarter was solid and the setup remains favorable. These Analysts Revise Their Forecasts On Workday Following Q1 Results
• Neutral Sentiment: Some analysts remain cautious, calling the post-earnings move more of a relief rally and noting that the stock is still expensive relative to fundamentals. WDAY Stock’s Gains Following Q1 Beat Fails to Unite Wall Street – This Analyst Believes Post-Earnings Rise Feels More Like Relief Rally
• Negative Sentiment: Citi and other firms trimmed price targets, reflecting lingering concerns about valuation and execution even after the strong quarter. Workday Rallies On 'Low Bar' Beat As AI Starts To Show Up In Contract Value

Insider Activity

In other news, insider Gerrit S. Kazmaier sold 9,356 shares of Workday stock in a transaction dated Tuesday, April 7th. The shares were sold at an average price of $128.39, for a total value of $1,201,216.84. Following the completion of the transaction, the insider directly 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 position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 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, major shareholder David A. Duffield sold 107,500 shares of Workday stock in a transaction dated Tuesday, March 31st. The shares were sold at an average price of $129.76, for a total transaction of $13,949,200.00. Following the completion of the sale, the insider owned 105,049 shares in the company, valued at approximately $13,631,158.24. This represents a 50.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 989,814 shares of company stock valued at $131,576,291 over the last ninety days. Company insiders own 18.64% of the company's stock.

Workday Stock Performance

NASDAQ WDAY opened at $128.14 on Monday. Workday, Inc. has a one year low of $110.36 and a one year high of $257.09. The company has a 50-day simple moving average of $125.91 and a 200-day simple moving average of $168.79. 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 firm has a market capitalization of $32.93 billion, a PE ratio of 40.04, a price-to-earnings-growth ratio of 1.24 and a beta of 1.04.

Workday (NASDAQ:WDAY - Get Free Report) last posted its quarterly 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. Workday had a net margin of 8.60% and a return on equity of 13.92%. The business had revenue of $2.54 billion during the quarter, compared to analyst estimates of $2.52 billion. During the same period in the previous year, the business posted $2.23 EPS. The company's quarterly revenue was up 13.5% on a year-over-year basis. On average, equities analysts forecast that Workday, Inc. will post 5.12 earnings per share 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.