JMP Securities Reiterates "Market Outperform" Rating for Workday (NASDAQ:WDAY)

Key Points

• JMP Securities has reiterated a "Market Outperform" rating for Workday (NASDAQ: WDAY), with a target price of $315.00, indicating a potential upside of 47.47% from its current stock price.
• Workday's recent earnings report showed an EPS of $2.21, surpassing the consensus estimate of $2.09, with revenue up 12.6% year-over-year at $2.35 billion.
• Institutional investors own 89.81% of Workday's stock, highlighting significant interest from large investors in the company's prospects.

Workday (NASDAQ:WDAY - Get Free Report)'s stock had its "market outperform" rating restated by equities researchers at JMP Securities in a research report issued on Friday,Benzinga reports. They presently have a $315.00 target price on the software maker's stock. JMP Securities' price target would suggest a potential upside of 47.47% from the company's current price.

Several other equities research analysts have also weighed in on WDAY. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $340.00 target price on shares of Workday in a research report on Friday. Westpark Capital increased their target price on Workday from $315.00 to $328.00 and gave the stock a "buy" rating in a research report on Friday, May 23rd. Bank of America dropped their target price on Workday from $295.00 to $278.00 and set a "buy" rating on the stock in a research report on Tuesday. Stifel Nicolaus lowered their price target on Workday from $275.00 to $255.00 and set a "hold" rating on the stock in a report on Friday. Finally, Cantor Fitzgerald set a $265.00 price target on Workday in a report on Thursday, August 14th. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $285.36.

Workday Stock Performance

Workday stock opened at $213.6060 on Friday. The stock has a market cap of $57.03 billion, a P/E ratio of 119.34, a price-to-earnings-growth ratio of 3.44 and a beta of 1.24. The company has a current ratio of 2.07, a quick ratio of 2.07 and a debt-to-equity ratio of 0.33. The stock has a 50 day moving average of $232.85 and a 200-day moving average of $242.98. Workday has a 52 week low of $205.33 and a 52 week high of $294.00.

Workday (NASDAQ:WDAY - Get Free Report) last released its earnings results on Thursday, August 21st. The software maker reported $2.21 EPS for the quarter, beating the consensus estimate of $2.09 by $0.12. Workday had a return on equity of 8.00% and a net margin of 5.60%.The company had revenue of $2.35 billion during the quarter, compared to analysts' expectations of $2.34 billion. During the same period in the prior year, the business posted $1.75 EPS. The business's revenue was up 12.6% on a year-over-year basis. Workday has set its FY 2026 guidance at EPS. Q3 2026 guidance at EPS. On average, analysts expect that Workday will post 2.63 EPS for the current fiscal year.

Insider Buying and Selling

In related news, major shareholder David A. Duffield sold 73,971 shares of the business's stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $238.66, for a total value of $17,653,918.86. Following the sale, the insider owned 102,997 shares of the company's stock, valued at $24,581,264.02. The trade was a 41.80% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Zane Rowe sold 6,000 shares of the business's stock in a transaction on Tuesday, July 8th. The stock was sold at an average price of $239.59, for a total value of $1,437,540.00. Following the completion of the transaction, the chief financial officer directly owned 178,418 shares in the company, valued at approximately $42,747,168.62. This represents a 3.25% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 329,005 shares of company stock worth $79,203,523. Insiders own 19.31% of the company's stock.

Hedge Funds Weigh In On Workday

Large investors have recently made changes to their positions in the company. Rakuten Securities Inc. acquired a new position in shares of Workday during the second quarter valued at $25,000. Cornerstone Planning Group LLC lifted its stake in Workday by 76.1% in the first quarter. Cornerstone Planning Group LLC now owns 125 shares of the software maker's stock valued at $28,000 after buying an additional 54 shares during the period. Berbice Capital Management LLC lifted its stake in Workday by 136.4% in the second quarter. Berbice Capital Management LLC now owns 130 shares of the software maker's stock valued at $31,000 after buying an additional 75 shares during the period. Dagco Inc. acquired a new position in Workday in the first quarter valued at about $31,000. Finally, Farmers & Merchants Investments Inc. acquired a new position in Workday in the first quarter valued at about $32,000. Institutional investors and hedge funds own 89.81% of the company's stock.

Workday Company Profile

Workday, Inc provides enterprise cloud applications in the United States and internationally. Its applications help its customers to plan, execute, analyze, and extend to other applications and environments to manage their business and operations. The company offers a suite of financial management applications to maintain accounting information in the general ledger; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; enhance financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations.

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