Workday, Inc. $WDAY Stock Holdings Increased by First Trust Advisors LP

Key Points

• First Trust Advisors LP increased its stake in Workday by 5.2% to 1,220,911 shares (about $293.9M) in Q3, and institutional investors now own roughly 89.81% of the company with other large funds (Vanguard, State Street, Generation) also adding to positions.
• Insider selling: co‑founder David A. Duffield sold 107,500 shares (~$14.4M), cutting his stake by about 50.6%, and insiders have sold 395,796 shares (~$75.9M) over the past three months, which could weigh on investor sentiment.
• Mixed analyst outlook: several firms have trimmed ratings and price targets (e.g., Citi to $148, UBS to $130, TD Cowen to hold) despite Workday beating the quarter (EPS $2.47 vs. $2.32; revenue $2.53B), leaving a divided market view and an average target near $205.19.

First Trust Advisors LP raised its holdings in shares of Workday, Inc. (NASDAQ:WDAY - Free Report) by 5.2% in the third quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 1,220,911 shares of the software maker's stock after buying an additional 59,979 shares during the period. First Trust Advisors LP owned about 0.46% of Workday worth $293,910,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently modified their holdings of the stock. Vanguard Group Inc. grew its holdings in shares of Workday by 3.2% in the 3rd quarter. Vanguard Group Inc. now owns 21,799,056 shares of the software maker's stock worth $5,247,687,000 after acquiring an additional 684,872 shares during the last quarter. State Street Corp increased its position in shares of Workday by 3.3% in the second quarter. State Street Corp now owns 9,600,516 shares of the software maker's stock worth $2,304,124,000 after acquiring an additional 303,713 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of Workday by 2.9% during the second quarter. Geode Capital Management LLC now owns 4,952,938 shares of the software maker's stock valued at $1,183,112,000 after acquiring an additional 140,042 shares during the period. Parnassus Investments LLC raised its holdings in shares of Workday by 13.1% during the third quarter. Parnassus Investments LLC now owns 3,217,205 shares of the software maker's stock valued at $774,478,000 after acquiring an additional 371,561 shares during the period. Finally, Generation Investment Management LLP lifted its position in shares of Workday by 50.4% in the 3rd 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 in the last quarter. Institutional investors and hedge funds own 89.81% of the company's stock.

Insider Buying and Selling

In related news, major shareholder David A. Duffield sold 107,500 shares of Workday stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $134.40, for a total value of $14,448,000.00. Following the completion of the sale, the insider owned 105,049 shares of the company's stock, valued at approximately $14,118,585.60. The trade was a 50.58% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Mark S. Garfield sold 953 shares of the company's stock in a transaction on Thursday, January 8th. The stock was sold at an average price of $209.56, for a total transaction of $199,710.68. Following the completion of the sale, the chief accounting officer owned 35,336 shares of the company's stock, valued at $7,405,012.16. This represents a 2.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 395,796 shares of company stock valued at $75,909,516. 19.31% of the stock is owned by company insiders.

Workday News Roundup

Here are the key news stories impacting Workday this week:

• Positive Sentiment: High‑profile endorsement for new leadership: TV host Jim Cramer called Workday’s new CEO “terrific,” which can boost investor sentiment and short‑term demand. Jim Cramer Considers Workday’s New CEO “Terrific”
• Positive Sentiment: Technical/flow support: recent bargain‑hunting and a short‑covering rally have driven quick gains after February’s pullback, attracting momentum traders. Workday (WDAY) Climbs 7.2% on Bargain-Hunting
• Positive Sentiment: Founder returns to CEO role with stronger AI emphasis — investors view this as a signal of strategic focus on AI product development, which could support longer‑term revenue expansion if execution succeeds. Workday Founder Returns As CEO While AI Focus Shapes Valuation Outlook
• Neutral Sentiment: Board granted CEO Aneel Bhusri a new equity package; this aligns leadership with shareholders but can raise dilution questions depending on structure. Workday Grants CEO Aneel Bhusri New Equity Package
• Neutral Sentiment: Macro backdrop remains a headwind for growth software names (inflation/higher rates), which can cap upside even during sector‑specific rallies. US Stock Market Today S&P 500 Futures Edge Lower On Stubborn Inflation Jitters
• Neutral Sentiment: Competitive landscape: emerging AI/analytics startups (e.g., Pigment) are targeting planning/analytics customers — something to monitor but not an immediate earnings threat. The French AI startup gunning for Workday, Oracle, and SAP
• Negative Sentiment: Analysts trimming targets: Citi cut its price target to $148 (from $247) and Morgan Stanley and others have reduced targets — a clear near‑term drag on sentiment and potential selling pressure. Workday, Inc. (WDAY) Price Target Lowered to $148 at Citi
• Negative Sentiment: Large insider sale: co‑founder David Duffield sold 107,500 shares (~$14.4M) and cut his stake roughly in half — markets can interpret this as a negative signal on insider conviction or simply liquidity‑driven. SEC Filing — Duffield Sale
• Negative Sentiment: Estimate‑revision risk: analyst commentary highlights slowing growth, margin pressure and falling EPS revisions as Workday invests in AI and new markets — a potential medium‑term headwind for valuations. Should You Avoid WDAY Stock Amid Declining Estimate Revisions?

Analyst Ratings Changes

Several equities analysts have weighed in on the stock. TD Cowen cut shares of Workday from a "buy" rating to a "hold" rating and set a $155.00 price objective on the stock. in a research report on Wednesday, February 25th. UBS Group reduced their target price on Workday from $170.00 to $130.00 and set a "neutral" rating for the company in a report on Wednesday, February 25th. Loop Capital set a $280.00 target price on Workday in a research report on Wednesday, December 10th. Morgan Stanley lowered their price target on Workday from $280.00 to $200.00 and set an "equal weight" rating on the stock in a report on Monday, February 23rd. Finally, Barclays dropped their price target on Workday from $230.00 to $200.00 and set an "overweight" rating on the stock in a research report on Wednesday, February 25th. Twenty equities research analysts have rated the stock with a Buy rating and fifteen have issued a Hold rating to the company's stock. Based on data from MarketBeat, Workday has an average rating of "Moderate Buy" and an average target price of $205.19.

Workday Stock Up 2.6%

Shares of Workday stock opened at $151.04 on Friday. The firm has a market cap of $39.72 billion, a price-to-earnings ratio of 58.54, a P/E/G ratio of 1.44 and a beta of 1.16. The stock has a 50-day simple moving average of $172.17 and a 200-day simple moving average of $209.12. Workday, Inc. has a 52-week low of $117.76 and a 52-week high of $276.00. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.32 and a quick ratio of 1.83.

Workday (NASDAQ:WDAY - Get Free Report) last released its quarterly earnings data on Tuesday, February 24th. The software maker reported $2.47 EPS for the quarter, topping analysts' consensus estimates of $2.32 by $0.15. The firm had revenue of $2.53 billion for 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%.The firm's revenue was up 14.5% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.92 earnings per share. On average, equities research analysts expect that Workday, Inc. will post 2.63 earnings per share for the current fiscal 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.

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