Workday (NASDAQ:WDAY) Earns "Neutral" Rating from BTIG Research

Key Points

• BTIG Research reaffirmed its “Neutral” rating on Workday, while the broader analyst consensus remains “Moderate Buy” with an average price target of $187.36.
• Workday exceeded quarterly expectations, reporting $2.66 in adjusted EPS versus $2.51 expected and $2.54 billion in revenue, up 13.5% year over year.
• Workday shares opened at $198.68, significantly above their 50-day and 200-day moving averages, while insiders sold approximately $113.9 million worth of stock over the past three months.

Workday (NASDAQ:WDAY - Get Free Report)'s stock had its "neutral" rating reaffirmed by stock analysts at BTIG Research in a report released on Monday, Marketbeat reports.

Several other research analysts have also recently issued reports on the stock. BMO Capital Markets reissued an "outperform" rating on shares of Workday in a report on Friday. Lake Street Capital set a $205.00 price target on Workday in a report on Friday. The Goldman Sachs Group decreased their price target on Workday from $206.00 to $151.00 and set a "neutral" rating on the stock in a research note on Tuesday, May 26th. Cantor Fitzgerald reiterated an "overweight" rating on shares of Workday in a research report on Wednesday, June 17th. Finally, Oppenheimer reissued an "outperform" rating on shares of Workday in a report on Thursday, June 11th. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, fifteen have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $187.36.

Workday Stock Performance

Shares of Workday stock opened at $198.68 on Monday. The stock has a market capitalization of $49.07 billion, a price-to-earnings ratio of 62.09, a PEG ratio of 2.11 and a beta of 1.08. The firm's fifty day simple moving average is $144.40 and its 200-day simple moving average is $138.94. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.01 and a quick ratio of 1.01. Workday has a 12 month low of $110.36 and a 12 month high of $249.85.

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 (EPS) for the quarter, topping analysts' consensus estimates of $2.51 by $0.15. The firm had revenue of $2.54 billion for the quarter, compared to analyst estimates of $2.52 billion. Workday had a return on equity of 14.75% and a net margin of 8.60%.The business's revenue was up 13.5% on a year-over-year basis. During the same quarter last year, the company posted $2.23 earnings per share. As a group, equities analysts forecast that Workday will post 5.38 earnings per share for the current year.

Insider Buying and Selling

In related news, CAO Mark S. Garfield sold 918 shares of the stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $142.19, for a total value of $130,530.42. Following the sale, the chief accounting officer directly owned 73,718 shares of the company's stock, valued at approximately $10,481,962.42. This represents a 1.23% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder David A. Duffield sold 107,500 shares of the firm's stock in a transaction dated Thursday, July 9th. The shares were sold at an average price of $136.74, for a total transaction of $14,699,550.00. Following the transaction, the insider owned 105,049 shares of the company's stock, valued at $14,364,400.26. This trade represents a 50.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 875,020 shares of company stock valued at $113,938,503 in the last three months. 18.64% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Norges Bank purchased a new position in Workday in the fourth quarter valued at about $448,804,000. Harvest Fund Management Co. Ltd increased its holdings in Workday by 40.1% during the 4th quarter. Harvest Fund Management Co. Ltd now owns 55,605 shares of the software maker's stock worth $11,943,000 after purchasing an additional 15,903 shares during the last quarter. Aurora Investment Counsel acquired a new position in shares of Workday in the 4th quarter valued at approximately $2,357,000. S&CO Inc. purchased a new position in shares of Workday during the 2nd quarter valued at approximately $2,284,000. Finally, Sapient Capital LLC acquired a new stake in shares of Workday during the second quarter worth approximately $13,045,000. 89.81% of the stock is currently owned by institutional investors and hedge funds.

About Workday

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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