Needham & Company LLC Reaffirms Buy Rating for Workday (NASDAQ:WDAY)

Key Points

• Needham & Company LLC has reiterated a "buy" rating for Workday (NASDAQ:WDAY) with a target price of $300, indicating a potential upside of 29.42% from the stock's previous close.
• Workday's stock has been the subject of mixed ratings from analysts, with some targeting as high as $321 while others have lowered targets below $300.
• Recent quarterly results showed a 12.6% year-over-year revenue growth, with Workday reporting an EPS of $2.21, exceeding analyst expectations.

Needham & Company LLC reiterated their buy rating on shares of Workday (NASDAQ:WDAY - Free Report) in a report issued on Tuesday,Benzinga reports. The firm currently has a $300.00 price objective on the software maker's stock.

A number of other research analysts have also issued reports on the stock. BMO Capital Markets cut their price target on shares of Workday from $314.00 to $285.00 and set an "outperform" rating on the stock in a research note on Friday, August 22nd. Cantor Fitzgerald set a $265.00 price objective on shares of Workday in a report on Thursday, August 14th. Loop Capital dropped their price objective on shares of Workday from $285.00 to $250.00 and set a "hold" rating on the stock in a report on Friday, May 23rd. Oppenheimer dropped their price objective on shares of Workday from $300.00 to $270.00 and set an "outperform" rating on the stock in a report on Friday, August 22nd. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $340.00 price objective on shares of Workday in a report on Friday, August 22nd. Three analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $286.81.

Workday Stock Performance

Workday stock traded down $3.28 during mid-day trading on Tuesday, reaching $223.39. 2,683,175 shares of the company traded hands, compared to its average volume of 2,515,613. The company has a debt-to-equity ratio of 0.33, a current ratio of 2.10 and a quick ratio of 2.10. Workday has a fifty-two week low of $205.33 and a fifty-two week high of $294.00. The company has a market capitalization of $59.65 billion, a price-to-earnings ratio of 103.42, a price-to-earnings-growth ratio of 3.16 and a beta of 1.12. The firm's fifty day moving average is $229.65 and its two-hundred day moving average is $239.31.

Workday (NASDAQ:WDAY - Get Free Report) last issued its quarterly earnings results on Thursday, August 21st. The software maker reported $2.21 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.09 by $0.12. Workday had a net margin of 6.51% and a return on equity of 9.74%. The business had revenue of $2.35 billion for the quarter, compared to analyst estimates of $2.34 billion. During the same quarter in the prior year, the business posted $1.75 EPS. Workday's revenue for the quarter was up 12.6% compared to the same quarter last year. Workday has set its FY 2026 guidance at EPS. Q3 2026 guidance at EPS. On average, equities research analysts expect that Workday will post 2.63 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO Zane Rowe sold 6,000 shares of the stock in a transaction on Tuesday, July 8th. The shares were sold at an average price of $239.59, for a total transaction of $1,437,540.00. Following the sale, the chief financial officer directly owned 178,418 shares of the company's stock, valued at approximately $42,747,168.62. This represents a 3.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Carl M. Eschenbach sold 6,250 shares of the stock in a transaction on Tuesday, July 1st. The stock was sold at an average price of $239.43, for a total transaction of $1,496,437.50. Following the sale, the chief executive officer directly owned 1,472 shares in the company, valued at $352,440.96. This trade represents a 80.94% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 318,380 shares of company stock valued at $76,586,604. 19.31% of the stock is currently owned by corporate insiders.

Institutional Trading of Workday

Hedge funds have recently added to or reduced their stakes in the company. Rakuten Securities Inc. purchased a new stake in Workday during the second quarter worth $25,000. Cornerstone Planning Group LLC raised its position in shares of 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 last quarter. Berbice Capital Management LLC raised its position in shares of 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 last quarter. Dagco Inc. acquired a new stake in shares of Workday in the first quarter valued at about $31,000. Finally, Farmers & Merchants Investments Inc. acquired a new stake in shares of Workday in the first quarter valued at about $32,000. 89.81% of the stock is owned by hedge funds and other institutional investors.

About Workday

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.