Insider Selling: Workday (NASDAQ:WDAY) CAO Sells 1,585 Shares of Stock

Key Points

• Insider sale: Workday CAO Mark Garfield sold 1,585 shares at an average price of $113.05 for $179,184.25, reducing his stake by 4.8% to 31,467 shares; the trade was executed under a pre-arranged Rule 10b5-1 plan and disclosed in an SEC filing.
• Recent results and valuation: Workday reported quarterly EPS of $2.47 (beats $2.32) and revenue of $2.53B (up 14.5% YoY), while the stock trades around $117.86 with a market cap of $30.29B and a P/E of 45.68.
• Market sentiment: Institutional investors own 89.81% of the shares with major inflows from Vanguard, Auto Owners and others, and analysts hold a consensus "Moderate Buy" rating with an average price target of $199.71 despite several recent target cuts.

Workday, Inc. (NASDAQ:WDAY - Get Free Report) CAO Mark Garfield sold 1,585 shares of the firm's stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $113.05, for a total transaction of $179,184.25. Following the completion of the sale, the chief accounting officer owned 31,467 shares of the company's stock, valued at $3,557,344.35. This trade represents a 4.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Workday Stock Performance

NASDAQ:WDAY traded down $2.06 during mid-day trading on Tuesday, hitting $117.86. The stock had a trading volume of 3,904,890 shares, compared to its average volume of 5,159,805. Workday, Inc. has a twelve month low of $110.36 and a twelve month high of $276.00. The stock has a market cap of $30.29 billion, a price-to-earnings ratio of 45.68, a PEG ratio of 1.09 and a beta of 1.14. The company's 50 day simple moving average is $137.44 and its 200 day simple moving average is $190.50. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.32 and a current ratio of 1.32.

Workday (NASDAQ:WDAY - Get Free Report) last issued its earnings results on Tuesday, February 24th. The software maker reported $2.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.32 by $0.15. Workday had a net margin of 7.26% and a return on equity of 13.37%. The business had revenue of $2.53 billion during the quarter, compared to the consensus estimate of $2.52 billion. During the same period last year, the business posted $1.92 EPS. Workday's revenue was up 14.5% on a year-over-year basis. On average, equities research analysts forecast that Workday, Inc. will post 2.63 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in WDAY. Auto Owners Insurance Co increased its holdings in shares of Workday by 25,412.8% during the fourth quarter. Auto Owners Insurance Co now owns 10,230,616 shares of the software maker's stock worth $2,197,332,000 after purchasing an additional 10,190,516 shares during the period. Vanguard Group Inc. increased its holdings in shares of Workday by 14.7% during the fourth quarter. Vanguard Group Inc. now owns 25,009,288 shares of the software maker's stock worth $5,371,495,000 after purchasing an additional 3,210,232 shares during the period. Janus Henderson Group PLC increased its holdings in shares of Workday by 101.4% during the fourth quarter. Janus Henderson Group PLC now owns 5,017,905 shares of the software maker's stock worth $1,077,537,000 after purchasing an additional 2,525,821 shares during the period. First Eagle Investment Management LLC bought a new position in shares of Workday during the third quarter worth approximately $556,252,000. Finally, Norges Bank bought a new position in shares of Workday during the fourth quarter worth approximately $448,804,000. 89.81% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on WDAY shares. DA Davidson cut their target price on shares of Workday from $250.00 to $125.00 and set a "neutral" rating for the company in a research note on Wednesday, February 25th. Mizuho cut their price objective on shares of Workday from $275.00 to $210.00 and set an "outperform" rating for the company in a research report on Wednesday, February 25th. UBS Group cut their price objective on shares of Workday from $170.00 to $130.00 and set a "neutral" rating for the company in a research report on Wednesday, February 25th. KeyCorp cut their price objective on shares of Workday from $260.00 to $155.00 and set an "overweight" rating for the company in a research report on Wednesday, February 25th. Finally, Stifel Nicolaus set a $175.00 price objective on shares of Workday in a research report on Monday, February 9th. Nineteen investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $199.71.

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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