Workday, Inc. $WDAY Shares Bought by First Eagle Investment Management LLC

Key Points

• First Eagle Investment Management boosted its Workday stake by 87.8% in the fourth quarter, buying more than 2.0 million shares and bringing its total holding to 4.34 million shares worth about $931.9 million.
• Workday shares were down 5.0% to $121.42, leaving the stock well below its 200-day moving average and near its 52-week low of $110.36.
• Despite recent price weakness and insider selling, Workday’s latest earnings beat expectations, with EPS of $2.47 versus a $2.32 estimate and revenue up 14.5% year over year to $2.53 billion.

First Eagle Investment Management LLC increased its holdings in Workday, Inc. (NASDAQ:WDAY - Free Report) by 87.8% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 4,338,773 shares of the software maker's stock after purchasing an additional 2,028,085 shares during the quarter. Workday accounts for about 1.6% of First Eagle Investment Management LLC's holdings, making the stock its 25th largest holding. First Eagle Investment Management LLC owned 1.65% of Workday worth $931,882,000 as of its most recent SEC filing.

A number of other hedge funds have also made changes to their positions in WDAY. Vanguard Group Inc. raised its holdings in shares of Workday by 14.7% during the fourth quarter. Vanguard Group Inc. now owns 25,009,288 shares of the software maker's stock valued at $5,371,495,000 after acquiring an additional 3,210,232 shares during the last quarter. Hotchkis & Wiley Capital Management LLC raised its holdings in shares of Workday by 47.5% during the third quarter. Hotchkis & Wiley Capital Management LLC now owns 5,842,491 shares of the software maker's stock valued at $1,406,463,000 after acquiring an additional 1,882,391 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Workday by 41.5% during the third 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 valued at $905,530,000 after acquiring an additional 1,103,421 shares during the last quarter. Generation Investment Management LLP raised its holdings in shares of Workday by 50.4% during the third quarter. Generation Investment Management LLP now owns 3,087,395 shares of the software maker's stock valued at $743,229,000 after acquiring an additional 1,034,589 shares during the last quarter. Finally, Amundi raised its holdings in shares of Workday by 61.5% during the third quarter. Amundi now owns 1,981,023 shares of the software maker's stock valued at $472,197,000 after acquiring an additional 754,313 shares during the last quarter. Institutional investors and hedge funds own 89.81% of the company's stock.

Workday Trading Down 5.0%

Shares of Workday stock opened at $121.42 on Tuesday. The firm has a market capitalization of $31.20 billion, a price-to-earnings ratio of 47.06, a PEG ratio of 1.24 and a beta of 1.04. Workday, Inc. has a fifty-two week low of $110.36 and a fifty-two week high of $276.00. 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 stock has a 50 day moving average of $129.26 and a 200 day moving average of $176.07.

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

Insiders Place Their Bets

In other Workday news, CAO Mark S. Garfield sold 1,585 shares of the firm's stock in a transaction on Friday, April 10th. The stock was sold at an average price of $113.05, for a total value of $179,184.25. Following the sale, the chief accounting officer directly owned 31,467 shares in the company, valued at $3,557,344.35. This trade represents a 4.80% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder David A. Duffield sold 107,500 shares of the firm's stock in a transaction on Thursday, April 9th. The shares were sold at an average price of $112.33, for a total value of $12,075,475.00. Following the completion of the sale, the insider owned 105,049 shares in the company, valued at approximately $11,800,154.17. 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. In the last 90 days, insiders sold 989,814 shares of company stock valued at $131,576,291. 18.64% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on WDAY shares. Guggenheim reduced their target price on Workday from $285.00 to $275.00 and set a "buy" rating for the company in a report on Wednesday, February 25th. BMO Capital Markets reduced their target price on Workday from $204.00 to $182.00 and set an "outperform" rating for the company in a report on Wednesday, February 25th. Royal Bank Of Canada reduced their target price on Workday from $220.00 to $180.00 and set an "outperform" rating for the company in a report on Wednesday, February 25th. Piper Sandler reduced their target price on Workday from $200.00 to $135.00 and set a "neutral" rating for the company in a report on Wednesday, February 25th. Finally, Citigroup cut their price target on Workday from $247.00 to $148.00 and set a "neutral" rating for the company in a report on Thursday, February 26th. Nineteen investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Workday has a consensus rating of "Moderate Buy" and a consensus price target of $199.71.

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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