Workday, Inc. $WDAY Stock Position Boosted by Fernbridge Capital Management LP

Key Points

• Fernbridge Capital Management LP boosted its stake in Workday by 11.4% in Q3 to 1,382,293 shares (about 16.2% of its holdings), worth roughly $332.8 million and making WDAY its second-largest position.
• While institutional ownership is high (about 89.8%) and several large funds added to positions, insiders sold 610,796 shares (~$107.0M) last quarter and multiple analysts cut price targets, leaving a consensus rating of “Moderate Buy” with a $203 price target.

Fernbridge Capital Management LP lifted its holdings in shares of Workday, Inc. (NASDAQ:WDAY - Free Report) by 11.4% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,382,293 shares of the software maker's stock after acquiring an additional 140,913 shares during the quarter. Workday comprises approximately 16.2% of Fernbridge Capital Management LP's holdings, making the stock its 2nd biggest holding. Fernbridge Capital Management LP owned approximately 0.52% of Workday worth $332,759,000 as of its most recent SEC filing.

Several other large investors have also recently added to or reduced their stakes in the stock. First Eagle Investment Management LLC purchased a new position in Workday in the third quarter valued at about $556,252,000. Norges Bank purchased a new stake in shares of Workday in the second quarter worth about $442,702,000. Generation Investment Management LLP boosted its position in shares of Workday by 50.4% in the third quarter. Generation Investment Management LLP now owns 3,087,395 shares of the software maker's stock worth $743,229,000 after buying an additional 1,034,589 shares during the period. Van ECK Associates Corp grew its stake in shares of Workday by 100.0% in the third quarter. Van ECK Associates Corp now owns 1,415,002 shares of the software maker's stock valued at $340,634,000 after buying an additional 707,423 shares in the last quarter. Finally, Vanguard Group Inc. grew its stake in shares of Workday by 3.2% in the third quarter. Vanguard Group Inc. now owns 21,799,056 shares of the software maker's stock valued at $5,247,687,000 after buying an additional 684,872 shares in the last quarter. 89.81% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Workday

In other news, CFO Zane Rowe sold 6,000 shares of the company's stock in a transaction dated Tuesday, January 6th. The shares were sold at an average price of $208.75, for a total value of $1,252,500.00. Following the sale, the chief financial officer owned 159,158 shares in the company, valued at approximately $33,224,232.50. This represents a 3.63% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, major shareholder David A. Duffield sold 107,500 shares of the stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $134.40, for a total transaction of $14,448,000.00. Following the transaction, the insider directly owned 105,049 shares in the company, valued at $14,118,585.60. The trade was a 50.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 610,796 shares of company stock valued at $107,013,566. 19.31% of the stock is owned by insiders.

Analysts Set New Price Targets

Several research firms recently commented on WDAY. Barclays reduced 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. BTIG Research dropped their price objective on shares of Workday from $230.00 to $175.00 and set a "buy" rating on the stock in a research note on Wednesday, February 25th. Royal Bank Of Canada reduced their target price on shares of Workday from $220.00 to $180.00 and set an "outperform" rating on the stock in a research report on Wednesday, February 25th. Deutsche Bank Aktiengesellschaft decreased their target price on shares of Workday from $265.00 to $190.00 and set a "buy" rating for the company in a research note on Wednesday, February 18th. Finally, Oppenheimer lowered their price target on shares of Workday from $200.00 to $165.00 and set an "outperform" rating for the company in a 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. Based on data from MarketBeat.com, Workday currently has a consensus rating of "Moderate Buy" and a consensus price target of $203.00.

Workday Price Performance

WDAY stock opened at $133.09 on Friday. The stock's 50 day moving average is $164.66 and its two-hundred day moving average is $206.10. Workday, Inc. has a 52-week low of $117.76 and a 52-week high of $276.00. The company has a market capitalization of $35.00 billion, a PE ratio of 51.59, a P/E/G ratio of 1.30 and a beta of 1.16. The company has a quick ratio of 1.83, a current ratio of 1.32 and a debt-to-equity ratio of 0.38.

Workday (NASDAQ:WDAY - Get Free Report) last released its earnings results on Tuesday, February 24th. The software maker reported $2.47 EPS for the quarter, beating 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 company had revenue of $2.53 billion during the quarter, compared to analysts' expectations of $2.52 billion. During the same period in the prior year, the business posted $1.92 EPS. The business's revenue was up 14.5% on a year-over-year basis. Analysts predict that Workday, Inc. will post 2.63 earnings per share for the current fiscal year.

Workday Company 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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