Workiva (NYSE:WK) Shares Break Below 50-Day Moving Average Following Weak Earnings

Key Points

• Workiva shares fell below their 50-day moving average after earnings, trading as low as $66.43 versus the $75.83 average.
• Quarterly EPS of $0.72 missed estimates of $0.80, while revenue increased 17.3% year over year to $262.96 million, slightly beating expectations.
• Outlook weighed on investor sentiment: Workiva’s Q4 and full-year EPS guidance came in below analyst consensus, and its Q4 revenue range was just under estimates.

Workiva Inc. (NYSE:WK - Get Free Report) crossed below its 50-day moving average during trading on Friday following a dissappointing earnings announcement. The stock has a 50-day moving average of $75.83 and traded as low as $66.43. Workiva shares last traded at $72.8320, with a volume of 2,535,831 shares traded.

The software maker reported $0.72 EPS for the quarter, missing analysts' consensus estimates of $0.80 by ($0.08). Workiva had a negative return on equity of 140.17% and a net margin of 4.87%. The business had revenue of $262.96 million during the quarter, compared to the consensus estimate of $261.37 million. During the same period in the previous year, the business posted $0.55 EPS. The firm's revenue for the quarter was up 17.3% on a year-over-year basis.

Key Stories Impacting Workiva

Here are the key news stories impacting Workiva this week:

• Positive Sentiment: Third-quarter revenue rose 17.3% year over year to $262.96 million, topping analysts’ $261.37 million estimate. Quarterly results
• Neutral Sentiment: Coverage highlighted Workiva’s AI expansion, while noting moderating business tailwinds; the available reports do not quantify the potential financial contribution from AI. Q3 deep dive
• Negative Sentiment: Q3 EPS was $0.72, below the roughly $0.79–$0.80 consensus, despite increasing from $0.55 a year earlier. The earnings shortfall is a likely drag on sentiment. Q3 earnings miss
• Negative Sentiment: Workiva’s Q4 EPS outlook of $0.78–$0.80 is below the $0.92 consensus, and its $275 million–$278 million revenue range is just shy of the $278.1 million estimate. Full-year EPS guidance of $2.80–$2.83 also trails the $2.95 consensus, putting the outlook at the center of investor concern. Why shares are falling

Wall Street Analysts Forecast Growth

WK has been the topic of several recent research reports. Robert W. Baird upped their price objective on Workiva from $95.00 to $105.00 and gave the stock an "outperform" rating in a report on Wednesday, September 16th. BTIG Research set a $85.00 price target on shares of Workiva in a research report on Wednesday, September 16th. Stifel Nicolaus set a $95.00 price objective on shares of Workiva in a research report on Thursday, August 27th. Zacks Research cut shares of Workiva from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 5th. Finally, Weiss Ratings downgraded shares of Workiva from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday. Nine analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Workiva presently has a consensus rating of "Moderate Buy" and an average price target of $87.00.

Insider Activity at Workiva

In related news, EVP Brandon Ziegler sold 6,571 shares of the company's stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $75.97, for a total transaction of $499,198.87. Following the transaction, the executive vice president directly owned 126,216 shares in the company, valued at approximately $9,588,629.52. This represents a 4.95% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 4.77% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Assenagon Asset Management S.A. purchased a new position in shares of Workiva in the 2nd quarter valued at $4,661,000. Summit Creek Advisors LLC bought a new position in Workiva in the second quarter worth about $3,916,000. First Trust Advisors LP boosted its holdings in shares of Workiva by 16.4% in the 1st quarter. First Trust Advisors LP now owns 862,936 shares of the software maker's stock valued at $51,457,000 after buying an additional 121,643 shares in the last quarter. Ranger Investment Management L.P. grew its position in shares of Workiva by 11.5% in the 1st quarter. Ranger Investment Management L.P. now owns 342,185 shares of the software maker's stock worth $20,404,000 after buying an additional 35,329 shares during the last quarter. Finally, Quantinno Capital Management LP grew its position in shares of Workiva by 320.9% in the 1st quarter. Quantinno Capital Management LP now owns 36,925 shares of the software maker's stock worth $2,202,000 after buying an additional 28,152 shares during the last quarter. Institutional investors own 92.21% of the company's stock.

Workiva Stock Performance

The stock has a market cap of $4.09 billion, a P/E ratio of 65.03 and a beta of 0.46. The firm's 50 day moving average is $75.83 and its 200 day moving average is $63.07.

Workiva Company Profile

Workiva Inc NYSE: WK provides cloud-based software designed to help organizations manage reporting, compliance, risk and other complex business processes. Its platform connects financial, operational and environmental, social and governance (ESG) data so teams can collaborate on information used for internal and external reporting.

The company's products support financial reporting, regulatory filings, audit and compliance workflows, investor communications, and sustainability reporting.

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