Workday, Inc. $WDAY Shares Sold by Keenan Capital LLC

Key Points

• Keenan Capital reduced its Workday stake by 37.4% in the second quarter, selling 126,000 shares and retaining 211,241 shares valued at approximately $25.9 million.
• Institutional ownership remains high at 89.81%, with major investors including California State Teachers Retirement System and Janus Henderson significantly increasing their positions.
• Workday exceeded quarterly expectations, reporting $2.75 in adjusted EPS and $2.65 billion in revenue, up 12.8% year over year. Analysts’ consensus rating is “Hold,” with an average price target of $206.34.

Keenan Capital LLC cut its holdings in Workday, Inc. (NASDAQ:WDAY - Free Report) by 37.4% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 211,241 shares of the software maker's stock after selling 126,000 shares during the quarter. Workday comprises approximately 5.1% of Keenan Capital LLC's portfolio, making the stock its 10th largest holding. Keenan Capital LLC owned about 0.09% of Workday worth $25,860,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also made changes to their positions in the business. California State Teachers Retirement System raised its position in Workday by 11,770.8% during the 2nd quarter. California State Teachers Retirement System now owns 36,907,426 shares of the software maker's stock worth $4,518,207,000 after buying an additional 36,596,516 shares during the last quarter. Auto Owners Insurance Co boosted its holdings in shares of Workday by 25,412.8% in the fourth quarter. Auto Owners Insurance Co now owns 10,230,616 shares of the software maker's stock valued at $2,197,332,000 after acquiring an additional 10,190,516 shares in the last quarter. Janus Henderson Group PLC boosted its holdings in shares of Workday by 101.4% in the fourth quarter. Janus Henderson Group PLC now owns 5,017,905 shares of the software maker's stock valued at $1,077,537,000 after acquiring an additional 2,525,821 shares in the last quarter. Norges Bank acquired a new position in shares of Workday during the fourth quarter worth about $448,804,000. Finally, First Eagle Investment Management LLC raised its holdings in Workday by 87.8% during the fourth quarter. First Eagle Investment Management LLC now owns 4,338,773 shares of the software maker's stock worth $931,882,000 after purchasing an additional 2,028,085 shares in the last quarter. 89.81% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

WDAY has been the subject of a number of analyst reports. Needham & Company LLC increased their target price on Workday from $180.00 to $230.00 and gave the stock a "buy" rating in a research note on Friday, August 28th. Morgan Stanley upped their price objective on Workday from $145.00 to $180.00 and gave the stock an "underweight" rating in a report on Friday, August 28th. TD Cowen cut their price objective on Workday from $220.00 to $210.00 and set a "hold" rating for the company in a research report on Friday, August 28th. Cantor Fitzgerald decreased their target price on shares of Workday from $220.00 to $205.00 and set an "overweight" rating on the stock in a research report on Friday, August 28th. Finally, Wolfe Research reaffirmed an "outperform" rating and set a $160.00 price target on shares of Workday in a research note on Friday, May 22nd. Twenty equities research analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $206.34.

Workday Stock Performance

Shares of WDAY opened at $186.28 on Wednesday. Workday, Inc. has a 1 year low of $110.36 and a 1 year high of $249.85. The company's 50 day simple moving average is $168.73 and its 200 day simple moving average is $143.28. The company has a market capitalization of $44.89 billion, a price-to-earnings ratio of 37.79, a PEG ratio of 1.98 and a beta of 1.08. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.91 and a current ratio of 0.91.

Workday (NASDAQ:WDAY - Get Free Report) last announced its quarterly earnings results on Thursday, August 27th. The software maker reported $2.75 earnings per share for the quarter, beating analysts' consensus estimates of $2.61 by $0.14. Workday had a net margin of 12.32% and a return on equity of 20.95%. The company had revenue of $2.65 billion for the quarter, compared to analyst estimates of $2.64 billion. During the same quarter last year, the business earned $2.21 EPS. Workday's revenue for the quarter was up 12.8% on a year-over-year basis. On average, sell-side analysts predict that Workday, Inc. will post 5.3 EPS for the current year.

Insider Activity

In other Workday news, major shareholder David A. Duffield sold 94,961 shares of the stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $199.29, for a total transaction of $18,924,777.69. Following the sale, the insider directly owned 105,049 shares of the company's stock, valued at approximately $20,935,215.21. This represents a 47.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Gerrit S. Kazmaier sold 2,728 shares of the firm's stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $143.62, for a total transaction of $391,795.36. Following the completion of the transaction, the insider directly owned 266,388 shares in the company, valued at $38,258,644.56. This represents a 1.01% decrease in their position. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 754,981 shares of company stock worth $101,916,181 over the last quarter. Corporate insiders own 18.64% of the company's stock.

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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