Workday, Inc. (NASDAQ:WDAY) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Workday has a consensus analyst rating of “Moderate Buy” from 35 covering firms, with an average 12-month price target of $184.
• The company recently reported better-than-expected quarterly results, posting EPS of $2.66 versus $2.51 expected and revenue of $2.54 billion versus $2.52 billion expected, with revenue up 13.5% year over year.
• There has been notable insider selling in recent months, including sales by CFO Zane Rowe and insider Gerrit S. Kazmaier, while institutional investors still hold 89.81% of the stock.

Shares of Workday, Inc. (NASDAQ:WDAY - Get Free Report) have been given an average recommendation of "Moderate Buy" by the thirty-five ratings firms that are currently covering the firm, MarketBeat reports. One research analyst has rated the stock with a sell recommendation, fourteen have issued a hold recommendation, nineteen have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year target price among brokers that have issued a report on the stock in the last year is $184.00.

WDAY has been the topic of several recent research reports. Weiss Ratings reiterated a "sell (d+)" rating on shares of Workday in a research report on Wednesday, June 17th. TD Cowen reissued a "hold" rating on shares of Workday in a research report on Friday, May 22nd. Needham & Company LLC decreased their price target on shares of Workday from $300.00 to $180.00 and set a "buy" rating on the stock in a research note on Friday, May 22nd. Cantor Fitzgerald reiterated an "overweight" rating on shares of Workday in a research note on Wednesday, June 17th. Finally, Piper Sandler boosted their price objective on shares of Workday from $135.00 to $145.00 and gave the company a "neutral" rating in a report on Friday, May 22nd.

Workday Price Performance

Workday stock opened at $138.95 on Monday. The company has a market capitalization of $34.32 billion, a price-to-earnings ratio of 43.42, a PEG ratio of 1.49 and a beta of 1.11. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 0.30. Workday has a 12 month low of $110.36 and a 12 month high of $249.85. The stock's 50 day moving average is $129.78 and its 200-day moving average is $146.63.

Workday (NASDAQ:WDAY - Get Free Report) last released its quarterly earnings results on Thursday, May 21st. The software maker reported $2.66 earnings per share for the quarter, topping the consensus estimate of $2.51 by $0.15. The business had revenue of $2.54 billion during the quarter, compared to analysts' expectations of $2.52 billion. Workday had a return on equity of 14.75% and a net margin of 8.60%.The firm's revenue for the quarter was up 13.5% compared to the same quarter last year. During the same period last year, the firm posted $2.23 EPS. Equities research analysts expect that Workday will post 5.34 EPS for the current year.

Insider Buying and Selling at Workday

In other Workday news, CFO Zane Rowe sold 6,000 shares of the firm's stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $143.70, for a total transaction of $862,200.00. Following the transaction, the chief financial officer owned 288,460 shares in the company, valued at $41,451,702. This trade represents a 2.04% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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. Also, insider Gerrit S. Kazmaier sold 2,728 shares of Workday stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $143.62, for a total value of $391,795.36. Following the completion of the transaction, the insider directly owned 266,388 shares of the company's stock, valued at $38,258,644.56. This represents a 1.01% decrease in their ownership of the stock. 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 a total of 766,602 shares of company stock valued at $99,108,423 in the last three months. Corporate insiders own 18.64% of the company's stock.

Institutional Trading of Workday

Large investors have recently modified their holdings of the stock. Brighton Jones LLC lifted its position in Workday by 230.2% during the fourth quarter. Brighton Jones LLC now owns 4,005 shares of the software maker's stock worth $1,033,000 after purchasing an additional 2,792 shares during the period. Empowered Funds LLC increased its holdings in Workday by 12.1% in the 1st quarter. Empowered Funds LLC now owns 11,142 shares of the software maker's stock valued at $2,602,000 after buying an additional 1,206 shares during the period. Geneos Wealth Management Inc. increased its holdings in Workday by 211.7% in the 1st quarter. Geneos Wealth Management Inc. now owns 187 shares of the software maker's stock valued at $44,000 after buying an additional 127 shares during the period. Sivia Capital Partners LLC acquired a new position in shares of Workday in the 2nd quarter valued at approximately $281,000. Finally, NewEdge Advisors LLC lifted its holdings in shares of Workday by 32.0% during the 2nd quarter. NewEdge Advisors LLC now owns 6,597 shares of the software maker's stock worth $1,583,000 after acquiring an additional 1,600 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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