The Goldman Sachs Group Issues Pessimistic Forecast for Workday (NASDAQ:WDAY) Stock Price

Key Points

• Goldman Sachs cut its price target on Workday from $206 to $151 while keeping a neutral rating, implying about 17.84% upside from the previous close.
• Analyst sentiment is mixed: the broader consensus remains “Moderate Buy” with a $187.71 average price target, but some firms recently downgraded the stock while others maintained or raised targets.
• Workday posted solid quarterly results, beating EPS and revenue estimates in its latest report, with revenue up 13.5% year over year and analysts expecting full-year EPS of 5.12.

Workday (NASDAQ:WDAY - Get Free Report) had its target price reduced by investment analysts at The Goldman Sachs Group from $206.00 to $151.00 in a report released on Tuesday,Benzinga reports. The brokerage currently has a "neutral" rating on the software maker's stock. The Goldman Sachs Group's price target points to a potential upside of 17.84% from the stock's previous close.

Other analysts have also issued research reports about the stock. Citizens Jmp lowered shares of Workday from an "outperform" rating to a "market perform" rating in a report on Wednesday, February 18th. Weiss Ratings lowered shares of Workday from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, March 20th. KeyCorp lifted their target price on shares of Workday from $155.00 to $158.00 and gave the stock an "overweight" rating in a report on Friday. TD Cowen reaffirmed a "hold" rating on shares of Workday in a report on Friday. Finally, Loop Capital set a $210.00 target price on shares of Workday in a report on Thursday, March 12th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Workday has a consensus rating of "Moderate Buy" and a consensus price target of $187.71.

Workday Stock Performance

WDAY stock opened at $128.14 on Tuesday. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.32 and a quick ratio of 1.32. The company has a 50 day moving average price of $125.79 and a 200 day moving average price of $168.05. Workday has a fifty-two week low of $110.36 and a fifty-two week high of $257.09. The stock has a market capitalization of $32.93 billion, a PE ratio of 40.04, a price-to-earnings-growth ratio of 1.24 and a beta of 1.04.

Workday (NASDAQ:WDAY - Get Free Report) last released its earnings results on Thursday, May 21st. The software maker reported $2.66 EPS for the quarter, topping analysts' consensus estimates of $2.51 by $0.15. Workday had a net margin of 8.60% and a return on equity of 13.92%. The firm had revenue of $2.54 billion during the quarter, compared to analyst estimates of $2.52 billion. During the same quarter in the previous year, the business earned $2.23 EPS. The business's quarterly revenue was up 13.5% compared to the same quarter last year. Analysts forecast that Workday will post 5.12 EPS for the current year.

Insiders Place Their Bets

In related news, major shareholder David A. Duffield sold 107,500 shares of the company's stock in a transaction on Thursday, April 9th. The shares were sold at an average price of $112.33, for a total value of $12,075,475.00. Following the completion of the sale, the insider owned 105,049 shares in the company, valued at $11,800,154.17. This represents a 50.58% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Enslin sold 5,373 shares of the company's stock in a transaction on Monday, April 6th. The shares were sold at an average price of $129.41, for a total transaction of $695,319.93. Following the completion of the sale, the insider owned 165,414 shares of the company's stock, valued at approximately $21,406,225.74. This represents a 3.15% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 989,814 shares of company stock worth $131,576,291 over the last 90 days. 18.64% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Workday

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Finivi Inc. boosted its stake in Workday by 3.3% in the 3rd quarter. Finivi Inc. now owns 1,516 shares of the software maker's stock worth $365,000 after purchasing an additional 48 shares during the period. Strategic Investment Advisors MI boosted its stake in Workday by 1.6% in the 2nd quarter. Strategic Investment Advisors MI now owns 3,263 shares of the software maker's stock worth $777,000 after purchasing an additional 50 shares during the period. Legacy Financial Advisors Inc. boosted its stake in Workday by 5.1% in the 3rd quarter. Legacy Financial Advisors Inc. now owns 1,113 shares of the software maker's stock worth $268,000 after purchasing an additional 54 shares during the period. Sagespring Wealth Partners LLC boosted its stake in Workday by 3.0% in the 4th quarter. Sagespring Wealth Partners LLC now owns 2,052 shares of the software maker's stock worth $441,000 after purchasing an additional 59 shares during the period. Finally, CVA Family Office LLC boosted its stake in Workday by 35.3% in the 4th quarter. CVA Family Office LLC now owns 249 shares of the software maker's stock worth $53,000 after purchasing an additional 65 shares during the period. 89.81% of the stock is owned by institutional investors and hedge funds.

Workday Company Profile

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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