Insider Selling: Workday (NASDAQ:WDAY) Major Shareholder Sells $14,699,550.00 in Stock

Key Points

• Workday major shareholder David Duffield sold 107,500 shares on July 9 at an average price of $136.74, totaling about $14.7 million. After the sale, he still owned 105,049 shares, cutting his stake by more than 50%.
• The sale was disclosed in an SEC filing and was made under a pre-arranged Rule 10b5-1 trading plan, which means it was scheduled in advance rather than executed on a discretionary basis.
• Workday recently reported better-than-expected quarterly results, with EPS of $2.66 versus $2.51 expected and revenue of $2.54 billion, up 13.5% year over year. Analysts currently rate the stock a Moderate Buy with an average price target of $184.

Workday, Inc. (NASDAQ:WDAY - Get Free Report) major shareholder David Duffield sold 107,500 shares of the firm's stock in a transaction dated Thursday, July 9th. The stock was sold at an average price of $136.74, for a total value of $14,699,550.00. Following the transaction, the insider directly owned 105,049 shares in the company, valued at approximately $14,364,400.26. This represents a 50.58% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Major shareholders that own 10% or more of a company's stock are required to disclose their sales and purchases with the SEC.

Workday Stock Performance

WDAY traded up $5.94 on Monday, hitting $144.89. 3,249,617 shares of the company traded hands, compared to its average volume of 5,159,738. The company has a 50 day moving average of $129.78 and a 200-day moving average of $146.63. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.30. The stock has a market capitalization of $35.79 billion, a PE ratio of 45.28, a PEG ratio of 1.49 and a beta of 1.11. Workday, Inc. has a 12-month low of $110.36 and a 12-month high of $249.85.

Workday (NASDAQ:WDAY - Get Free Report) last posted its quarterly earnings data on Thursday, May 21st. The software maker reported $2.66 earnings per share for the quarter, topping analysts' consensus estimates of $2.51 by $0.15. The company had revenue of $2.54 billion during the quarter, compared to analysts' expectations of $2.52 billion. Workday had a return on equity of 14.75% and a net margin of 8.60%.The firm's revenue for the quarter was up 13.5% on a year-over-year basis. During the same period last year, the firm earned $2.23 EPS. Sell-side analysts anticipate that Workday, Inc. will post 5.34 earnings per share for the current year.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. Cantor Fitzgerald reiterated an "overweight" rating on shares of Workday in a research report on Wednesday, June 17th. Wall Street Zen upgraded shares of Workday from a "hold" rating to a "buy" rating in a research note on Saturday, March 28th. DA Davidson set a $135.00 target price on shares of Workday in a research note on Tuesday, May 26th. HC Wainwright set a $140.00 target price on shares of Workday in a report on Wednesday, May 27th. Finally, The Goldman Sachs Group dropped their price target on shares of Workday from $206.00 to $151.00 and set a "neutral" rating on the stock in a research note on Tuesday, May 26th. One research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $184.00.

Hedge Funds Weigh In On Workday

Large investors have recently made changes to their positions in the stock. Rakuten Securities Inc. acquired a new position in Workday during the second quarter worth about $25,000. Measured Wealth Private Client Group LLC acquired a new stake in shares of Workday during the 3rd quarter valued at approximately $26,000. DT Investment Partners LLC purchased a new stake in shares of Workday during the 4th quarter worth approximately $27,000. LRI Investments LLC purchased a new stake in shares of Workday during the 4th quarter worth approximately $29,000. Finally, JPL Wealth Management LLC purchased a new stake in shares of Workday during the 3rd quarter worth approximately $30,000. Hedge funds and other institutional investors own 89.81% of the company's stock.

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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