Workday, Inc. $WDAY Stock: Motley Fool Asset Management LLC Boosts Stake

Key Points

• Motley Fool Asset Management increased its Workday stake by 178% during the third quarter, bringing its holdings to 21,125 shares valued at approximately $4.02 million. Institutional investors collectively own 89.81% of the company.
• Workday reported quarterly earnings of $2.75 per share, exceeding estimates of $2.61, while revenue rose 12.8% year over year to $2.65 billion.
• Analyst sentiment remains mixed: Workday has a consensus rating of “Hold” and an average price target of $202.10, near its reported share price of $204.36. Meanwhile, insiders sold nearly 988,104 shares worth $188.8 million over the past 90 days.

Motley Fool Asset Management LLC raised its position in shares of Workday, Inc. (NASDAQ:WDAY - Free Report) by 178.0% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 21,125 shares of the software maker's stock after buying an additional 13,527 shares during the quarter. Motley Fool Asset Management LLC's holdings in Workday were worth $4,023,000 at the end of the most recent quarter.

A number of other hedge funds have also recently modified their holdings of the business. Tidal Investments LLC increased its stake in shares of Workday by 43.6% in the 2nd quarter. Tidal Investments LLC now owns 1,439,456 shares of the software maker's stock worth $176,218,000 after acquiring an additional 437,175 shares in the last quarter. First Trust Advisors LP boosted its stake in Workday by 9.6% during the first quarter. First Trust Advisors LP now owns 1,416,176 shares of the software maker's stock worth $183,990,000 after acquiring an additional 124,524 shares in the last quarter. Pacer Advisors Inc. boosted its stake in Workday by 60.4% during the first quarter. Pacer Advisors Inc. now owns 1,227,051 shares of the software maker's stock worth $159,418,000 after acquiring an additional 462,002 shares in the last quarter. Temasek Holdings Private Ltd grew its holdings in Workday by 9.5% in the first quarter. Temasek Holdings Private Ltd now owns 889,318 shares of the software maker's stock worth $115,540,000 after purchasing an additional 77,330 shares during the period. Finally, Hsbc Holdings PLC grew its holdings in Workday by 25.3% in the first quarter. Hsbc Holdings PLC now owns 710,309 shares of the software maker's stock worth $92,374,000 after purchasing an additional 143,274 shares during the period. Institutional investors own 89.81% of the company's stock.

Insiders Place Their Bets

In related news, major shareholder David Duffield sold 100,780 shares of the company's stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $185.64, for a total value of $18,708,799.20. Following the transaction, the insider directly owned 105,049 shares of the company's stock, valued at approximately $19,501,296.36. This represents a 48.96% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 988,104 shares of company stock valued at $188,811,574. 18.64% of the stock is owned by insiders.

Workday Stock Down 0.5%

Shares of Workday stock opened at $204.36 on Thursday. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.91 and a current ratio of 0.91. The stock has a market capitalization of $49.25 billion, a PE ratio of 41.45, a price-to-earnings-growth ratio of 2.11 and a beta of 1.07. Workday, Inc. has a 52-week low of $110.36 and a 52-week high of $241.32. The company has a 50-day simple moving average of $194.12 and a two-hundred day simple moving average of $156.41.

Workday (NASDAQ:WDAY - Get Free Report) last posted its quarterly earnings results on Thursday, August 27th. The software maker reported $2.75 EPS for the quarter, beating analysts' consensus estimates of $2.61 by $0.14. The firm had revenue of $2.65 billion for the quarter, compared to analysts' expectations of $2.64 billion. Workday had a net margin of 12.32% and a return on equity of 20.95%. The business's revenue for the quarter was up 12.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.21 earnings per share. On average, analysts anticipate that Workday, Inc. will post 5.32 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of brokerages have weighed in on WDAY. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $205.00 target price (down from $220.00) on shares of Workday in a research note on Wednesday, September 30th. Bank of America boosted their price target on Workday from $140.00 to $205.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 19th. William Blair restated an "outperform" rating on shares of Workday in a research note on Friday, August 28th. CLSA began coverage on Workday in a research report on Monday, July 20th. They set an "underperform" rating and a $92.00 price objective for the company. Finally, UBS Group set a $175.00 price objective on Workday in a research note on Thursday, October 15th. Twenty-two analysts have rated the stock with a Buy rating, twenty have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $202.10.

Workday Company Profile

Workday, Inc is an enterprise software company that provides cloud-based applications for managing human resources, finance and business operations. Its platform is designed to help organizations manage workforce information, accounting, financial reporting, procurement, expenses and other core business processes through a unified software environment.

The company's products include human capital management, financial management, financial planning, spend management, payroll, recruiting, talent management, workforce planning, analytics and reporting solutions.

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