Workday, Inc. (NASDAQ:WDAY) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Workday, Inc. has received an average rating of "Moderate Buy" from 30 analyst firms, with a variety of ratings including one sell, eight hold, and three strong buy ratings.
• The company's stock has a current price objective among analysts averaging $286.81 and has recently seen substantial insider selling, with CEO Carl M. Eschenbach reducing his holdings by approximately 80.94%.
• Workday reported $2.21 EPS for the last quarter, exceeding analysts' expectations of $2.09, and its revenue increased by 12.6% year-over-year to $2.35 billion.

Workday, Inc. (NASDAQ:WDAY - Get Free Report) has received an average rating of "Moderate Buy" from the thirty ratings firms that are covering the stock, Marketbeat Ratings reports. One research analyst has rated the stock with a sell rating, eight have issued a hold rating, eighteen have given a buy rating and three have issued a strong buy rating on the company. The average 12 month price objective among analysts that have issued a report on the stock in the last year is $286.8077.

Several equities research analysts have recently issued reports on the stock. Needham & Company LLC reaffirmed a "buy" rating and set a $300.00 price objective on shares of Workday in a research report on Tuesday, September 9th. DA Davidson boosted their price target on shares of Workday from $230.00 to $250.00 and gave the company a "neutral" rating in a research report on Friday, May 23rd. JMP Securities reissued a "market outperform" rating and issued a $315.00 price target on shares of Workday in a research report on Friday, August 22nd. Royal Bank Of Canada reissued an "outperform" rating and issued a $340.00 price target on shares of Workday in a research report on Friday, August 22nd. Finally, Morgan Stanley set a $255.00 target price on shares of Workday and gave the company an "equal weight" rating in a report on Friday, May 23rd.

Workday Price Performance

Workday stock opened at $222.75 on Tuesday. The stock has a market cap of $59.47 billion, a P/E ratio of 103.13, a price-to-earnings-growth ratio of 3.11 and a beta of 1.12. The company has a fifty day simple moving average of $228.91 and a 200-day simple moving average of $238.43. Workday has a 12-month low of $205.33 and a 12-month high of $294.00. The company has a current ratio of 2.10, a quick ratio of 2.10 and a debt-to-equity ratio of 0.33.

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

Insiders Place Their Bets

In other news, CEO Carl M. Eschenbach sold 6,250 shares of the company's stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $239.43, for a total value of $1,496,437.50. Following the completion of the sale, the chief executive officer directly owned 1,472 shares of the company's stock, valued at approximately $352,440.96. This represents a 80.94% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, major shareholder David A. Duffield sold 72,551 shares of the company's stock in a transaction dated Tuesday, July 8th. The shares were sold at an average price of $239.61, for a total transaction of $17,383,945.11. Following the completion of the sale, the insider directly owned 102,997 shares of the company's stock, valued at $24,679,111.17. The trade was a 41.33% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 233,300 shares of company stock valued at $55,764,900. 20.00% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Rakuten Securities Inc. acquired a new position in shares of Workday during the second quarter worth about $25,000. Cornerstone Planning Group LLC grew its position in Workday by 76.1% during the first quarter. Cornerstone Planning Group LLC now owns 125 shares of the software maker's stock worth $28,000 after buying an additional 54 shares during the period. Dagco Inc. acquired a new stake in shares of Workday in the first quarter valued at approximately $31,000. Berbice Capital Management LLC grew 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 purchasing an additional 75 shares during the last quarter. Finally, Farmers & Merchants Investments Inc. acquired a new stake in shares of Workday in the first quarter valued at approximately $32,000. 89.81% of the stock is currently owned by institutional investors and hedge funds.

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.

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