Workday's (WDAY) "Outperform" Rating Reiterated at Royal Bank Of Canada

Key Points

• Royal Bank of Canada has reaffirmed its outperform rating for Workday (NASDAQ: WDAY) with a price target of $340.00, suggesting a potential upside of 42.37% from the current stock price.
• Several brokerages have recently changed their ratings on Workday; Guggenheim upgraded it to a buy with a target of $285.00, while other firms have maintained varying ratings with an average target price of $287.30.
• Workday's stock has shown significant movement, rising 9.0% to a price of $238.81, with a recent quarterly earnings report indicating an earnings per share of $2.21, surpassing estimates.

Royal Bank Of Canada restated their outperform rating on shares of Workday (NASDAQ:WDAY - Free Report) in a research note released on Wednesday,Benzinga reports. They currently have a $340.00 target price on the software maker's stock.

A number of other brokerages also recently weighed in on WDAY. Needham & Company LLC reiterated a "buy" rating and set a $300.00 price target on shares of Workday in a report on Wednesday. Deutsche Bank Aktiengesellschaft lowered their target price on Workday from $330.00 to $280.00 and set a "buy" rating on the stock in a research note on Friday, August 22nd. Stifel Nicolaus dropped their target price on Workday from $275.00 to $255.00 and set a "hold" rating on the stock in a report on Friday, August 22nd. Loop Capital decreased their price target on shares of Workday from $285.00 to $250.00 and set a "hold" rating for the company in a report on Friday, May 23rd. Finally, Citigroup lowered their price objective on shares of Workday from $279.00 to $260.00 and set a "neutral" rating on the stock in a research report on Friday, August 22nd. Two investment analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $287.83.

Workday Price Performance

Shares of NASDAQ WDAY traded up $0.12 during trading on Wednesday, hitting $233.62. The company had a trading volume of 5,925,724 shares, compared to its average volume of 3,765,603. The company has a market cap of $62.38 billion, a P/E ratio of 108.16, a PEG ratio of 3.08 and a beta of 1.12. Workday has a 52 week low of $205.33 and a 52 week high of $294.00. The business's 50-day moving average is $228.46 and its 200 day moving average is $238.13. The company has a debt-to-equity ratio of 0.33, a quick ratio of 2.10 and a current ratio of 2.10.

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

Insider Buying and Selling at Workday

In other news, CAO Mark S. Garfield sold 451 shares of the company's stock in a transaction dated Thursday, July 10th. The shares were sold at an average price of $234.86, for a total transaction of $105,921.86. Following the completion of the transaction, the chief accounting officer owned 42,977 shares of the company's stock, valued at approximately $10,093,578.22. This represents a 1.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Zane Rowe sold 6,000 shares of the company's stock in a transaction dated 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 transaction, the chief financial officer directly owned 178,418 shares of the company's stock, valued at $42,747,168.62. This represents a 3.25% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 328,024 shares of company stock valued at $76,664,934 in the last three months. Company insiders own 19.31% of the company's stock.

Institutional Trading of Workday

A number of institutional investors and hedge funds have recently added to or reduced their stakes in WDAY. Valeo Financial Advisors LLC raised its position in Workday by 43.2% in the second quarter. Valeo Financial Advisors LLC now owns 3,118 shares of the software maker's stock worth $748,000 after purchasing an additional 941 shares in the last quarter. Thrivent Financial for Lutherans grew its position in Workday by 1.5% in the second quarter. Thrivent Financial for Lutherans now owns 8,912 shares of the software maker's stock valued at $2,139,000 after acquiring an additional 128 shares during the period. MASTERINVEST Kapitalanlage GmbH bought a new stake in Workday in the second quarter valued at $247,000. Stance Capital LLC bought a new stake in Workday in the second quarter valued at $1,276,000. Finally, B. Riley Wealth Advisors Inc. bought a new stake in Workday in the second quarter valued at $318,000. Institutional investors own 89.81% of the company's stock.

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.