Workday, Inc. (NASDAQ:WDAY) Receives $296.88 Consensus Target Price from Analysts

Key Points

• Workday, Inc. has received a consensus rating of "Moderate Buy" from 28 brokerages, with an average twelve-month price objective of $296.88.
• Major shareholder David A. Duffield sold 73,971 shares at an average price of $238.66, resulting in a total transaction of approximately $17.65 million.
• In the latest earnings report, Workday reported $2.23 earnings per share for the quarter, exceeding analysts' estimates and showcasing a revenue increase of 12.6% year-over-year.

Shares of Workday, Inc. (NASDAQ:WDAY - Get Free Report) have earned an average rating of "Moderate Buy" from the twenty-eight brokerages that are currently covering the firm, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation, seven have issued a hold recommendation, eighteen have issued a buy recommendation and two have given a strong buy recommendation to the company. The average 12-month price objective among brokerages that have issued ratings on the stock in the last year is $296.88.

A number of equities analysts have recently issued reports on WDAY shares. DA Davidson upped their target price on shares of Workday from $230.00 to $250.00 and gave the stock a "neutral" rating in a research report on Friday, May 23rd. Loop Capital reduced their target price on shares of Workday from $285.00 to $250.00 and set a "hold" rating on the stock in a research report on Friday, May 23rd. Piper Sandler reiterated an "underweight" rating and set a $235.00 target price (down from $255.00) on shares of Workday in a research report on Thursday, July 10th. Wall Street Zen upgraded shares of Workday from a "hold" rating to a "buy" rating in a research report on Sunday, July 13th. Finally, JMP Securities reissued a "market outperform" rating and set a $315.00 price target on shares of Workday in a research note on Friday, May 23rd.

Workday Price Performance

NASDAQ:WDAY traded down $3.70 on Monday, reaching $238.04. The stock had a trading volume of 1,539,706 shares, compared to its average volume of 2,144,885. The company has a market capitalization of $63.56 billion, a P/E ratio of 131.51, a price-to-earnings-growth ratio of 3.65 and a beta of 1.21. Workday has a 1-year low of $199.81 and a 1-year high of $294.00. The company has a quick ratio of 2.07, a current ratio of 2.07 and a debt-to-equity ratio of 0.33. The stock has a fifty day moving average price of $241.87 and a 200-day moving average price of $246.54.

Workday (NASDAQ:WDAY - Get Free Report) last announced its earnings results on Thursday, May 22nd. The software maker reported $2.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.01 by $0.22. Workday had a net margin of 5.60% and a return on equity of 8.00%. The company had revenue of $2.24 billion for the quarter, compared to analyst estimates of $2.22 billion. During the same period in the prior year, the business earned $1.74 earnings per share. Workday's quarterly revenue was up 12.6% on a year-over-year basis. Research analysts forecast that Workday will post 2.63 EPS for the current year.

Insider Activity at Workday

In other news, major shareholder David A. Duffield sold 72,551 shares of the stock in a transaction on 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 owned 102,997 shares of the company's stock, valued at $24,679,111.17. This represents a 41.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Zane Rowe sold 6,000 shares of the stock in a transaction on Tuesday, July 8th. The stock was sold at an average price of $239.59, for a total transaction of $1,437,540.00. Following the transaction, the chief financial officer owned 178,418 shares of the company's stock, valued at $42,747,168.62. The trade was a 3.25% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 329,005 shares of company stock valued at $79,203,523 over the last three months. Insiders own 20.00% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the business. Callahan Advisors LLC boosted its holdings in Workday by 2.0% during the second quarter. Callahan Advisors LLC now owns 16,750 shares of the software maker's stock worth $4,020,000 after purchasing an additional 332 shares during the last quarter. New York State Teachers Retirement System lifted its stake in Workday by 3.2% in the second quarter. New York State Teachers Retirement System now owns 144,590 shares of the software maker's stock valued at $34,702,000 after acquiring an additional 4,528 shares during the last quarter. Mutual Advisors LLC lifted its stake in Workday by 9.2% in the second quarter. Mutual Advisors LLC now owns 1,412 shares of the software maker's stock valued at $341,000 after acquiring an additional 119 shares during the last quarter. Harbour Investments Inc. lifted its stake in Workday by 41.3% in the second quarter. Harbour Investments Inc. now owns 277 shares of the software maker's stock valued at $66,000 after acquiring an additional 81 shares during the last quarter. Finally, Sagespring Wealth Partners LLC lifted its stake in Workday by 16.5% in the second quarter. Sagespring Wealth Partners LLC now owns 2,235 shares of the software maker's stock valued at $536,000 after acquiring an additional 316 shares during the last quarter. Institutional investors and hedge funds own 89.81% of the company's stock.

Workday Company Profile

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.