Workday, Inc. $WDAY Stock: Retirement Systems of Alabama Lowers Stake

Key Points

• Retirement Systems of Alabama cut its Workday stake by 92.2% in the third quarter, selling 498,137 shares and retaining 42,151 shares valued at about $8.0 million. Institutional investors collectively own 89.81% of the stock.
• Workday reported quarterly earnings of $2.75 per share, beating estimates of $2.61, while revenue rose 12.8% year over year to $2.65 billion. Shares traded up 3.0% to $196.45.
• Analysts’ consensus rating is Hold, with an average price target of $202.10. Company insiders sold about 988,000 shares worth $188.8 million over the past 90 days; some sales were made under pre-arranged plans.

Retirement Systems of Alabama trimmed its position in shares of Workday, Inc. (NASDAQ:WDAY - Free Report) by 92.2% in the 3rd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 42,151 shares of the software maker's stock after selling 498,137 shares during the quarter. Retirement Systems of Alabama's holdings in Workday were worth $8,028,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds also recently bought and sold shares of the company. Kintegral Advisory LLC increased its position in Workday by 0.6% during the third quarter. Kintegral Advisory LLC now owns 10,893 shares of the software maker's stock valued at $2,075,000 after acquiring an additional 61 shares during the last quarter. CoreCap Advisors LLC lifted its holdings in shares of Workday by 55.9% in the 3rd quarter. CoreCap Advisors LLC now owns 173 shares of the software maker's stock worth $33,000 after acquiring an additional 62 shares during the last quarter. Pinnacle Wealth Planning Services Inc. lifted its holdings in shares of Workday by 18.1% in the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 437 shares of the software maker's stock worth $83,000 after acquiring an additional 67 shares during the last quarter. Citizens Financial Group Inc. RI boosted its stake in shares of Workday by 1.6% during the 3rd quarter. Citizens Financial Group Inc. RI now owns 4,770 shares of the software maker's stock worth $908,000 after purchasing an additional 75 shares during the period. Finally, Elevation Wealth Partners LLC boosted its stake in shares of Workday by 21.8% during the 3rd quarter. Elevation Wealth Partners LLC now owns 481 shares of the software maker's stock worth $92,000 after purchasing an additional 86 shares during the period. 89.81% of the stock is owned by hedge funds and other institutional investors.

Workday Trading Up 3.0%

Shares of NASDAQ:WDAY traded up $5.81 on Friday, hitting $196.45. 1,730,934 shares of the company's stock were exchanged, compared to its average volume of 2,147,996. The stock has a market capitalization of $47.34 billion, a price-to-earnings ratio of 39.85, a price-to-earnings-growth ratio of 1.92 and a beta of 1.02. Workday, Inc. has a 12 month low of $110.36 and a 12 month high of $236.80. The company has a debt-to-equity ratio of 0.31, a current ratio of 0.91 and a quick ratio of 0.91. The business's 50 day simple moving average is $193.31 and its two-hundred day simple moving average is $156.57.

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, topping 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 period in the prior year, the business posted $2.21 earnings per share. Analysts anticipate that Workday, Inc. will post 5.32 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. Morgan Stanley upped their price target on shares of Workday from $145.00 to $180.00 and gave the company an "underweight" rating in a report on Friday, August 28th. BTIG Research reissued a "neutral" rating on shares of Workday in a research note on Friday, October 16th. BNP Paribas Exane raised their price objective on shares of Workday from $160.00 to $220.00 and gave the stock an "outperform" rating in a research note on Friday, August 28th. Mizuho set a $210.00 target price on Workday in a research report on Wednesday, October 14th. Finally, Wall Street Zen raised Workday from a "hold" rating to a "buy" rating in a research note on Saturday, September 5th. Twenty-two research analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $202.10.

Insider Activity at Workday

In related news, CAO Mark Garfield sold 918 shares of Workday stock in a transaction dated Monday, October 12th. The shares were sold at an average price of $189.45, for a total transaction of $173,915.10. Following the completion of the sale, the chief accounting officer owned 69,309 shares in the company, valued at $13,130,590.05. This trade represents a 1.31% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Enslin sold 5,374 shares of the business's stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $187.00, for a total transaction of $1,004,938.00. Following the completion of the sale, the insider directly owned 226,233 shares of the company's stock, valued at approximately $42,305,571. This trade represents a 2.32% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 988,104 shares of company stock worth $188,811,574 over the last ninety days. 18.64% of the stock is currently owned by company insiders.

About Workday

Workday, Inc. develops cloud-based software for managing human resources, finance and business operations. Its products include Workday Human Capital Management, Workday Financial Management and Workday Adaptive Planning, which help organizations manage areas such as workforce administration, accounting, budgeting and forecasting. Founded in 2005 by Dave Duffield and Aneel Bhusri, Workday serves businesses, governments and educational institutions across a range of industries. Its operations and customer base extend across North America and international markets.

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