Workday (NASDAQ:WDAY) Price Target Lowered to $139.00 at Citigroup

Key Points

• Citigroup cut its price target on Workday from $148 to $139 while keeping a neutral rating, implying about 9.9% upside from the prior close.
• Workday’s latest earnings beat expectations, with Q1 adjusted EPS of $2.66 and revenue of $2.54 billion, both topping estimates and rising 13.5% year over year.
• Analyst sentiment remains mixed: several firms lowered targets, but the broader consensus is still Moderate Buy, with an average target price of $193.81.

Workday (NASDAQ:WDAY - Get Free Report) had its price objective decreased by Citigroup from $148.00 to $139.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage currently has a "neutral" rating on the software maker's stock. Citigroup's price target would indicate a potential upside of 9.93% from the stock's previous close.

Several other research analysts also recently issued reports on WDAY. JPMorgan Chase & Co. lowered their price target on shares of Workday from $270.00 to $230.00 and set an "overweight" rating for the company in a report on Tuesday, February 24th. Needham & Company LLC lowered their price target on shares of Workday from $300.00 to $180.00 and set a "buy" rating for the company in a report on Friday. Oppenheimer reiterated an "outperform" rating and set a $165.00 price target on shares of Workday in a report on Friday. BMO Capital Markets reiterated an "outperform" rating on shares of Workday in a report on Friday. Finally, BTIG Research reiterated a "buy" rating and set a $175.00 price target on shares of Workday in a report on Monday. Twenty investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $193.81.

Workday Price Performance

WDAY traded up $4.59 during trading on Friday, hitting $126.44. 6,094,413 shares of the stock traded hands, compared to its average volume of 5,090,853. Workday has a twelve month low of $110.36 and a twelve month high of $257.09. The company has a market cap of $32.50 billion, a price-to-earnings ratio of 48.97, a PEG ratio of 1.23 and a beta of 1.04. 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 business has a 50 day moving average price of $126.10 and a 200 day moving average price of $169.57.

Workday (NASDAQ:WDAY - Get Free Report) last announced its quarterly earnings data on Thursday, May 21st. The software maker reported $2.66 EPS for the quarter, beating the consensus estimate of $2.49 by $0.17. Workday had a net margin of 7.26% and a return on equity of 13.37%. The business had revenue of $2.54 billion during the quarter, compared to the consensus estimate of $2.52 billion. During the same period in the previous year, the business earned $2.23 earnings per share. The company's revenue was up 13.5% on a year-over-year basis. Equities research analysts forecast that Workday will post 5.11 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Zane Rowe sold 6,000 shares of the business's stock in a transaction on Tuesday, April 7th. The shares were sold at an average price of $128.22, for a total value of $769,320.00. Following the sale, the chief financial officer owned 217,930 shares of the company's stock, valued at $27,942,984.60. The trade was a 2.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through 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 Robert Enslin sold 5,373 shares of the business's stock in a transaction on Monday, April 6th. The stock was sold at an average price of $129.41, for a total transaction of $695,319.93. Following the completion of the sale, the insider directly owned 165,414 shares in the company, valued at approximately $21,406,225.74. This represents a 3.15% decrease in their position. The SEC filing for this sale provides additional information. 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 989,814 shares of company stock valued at $131,576,291 over the last quarter. 18.64% of the stock is currently owned by company insiders.

Institutional Trading of Workday

Institutional investors have recently modified their holdings of the business. Rakuten Securities Inc. bought a new stake in shares of Workday in the second quarter worth $25,000. Measured Wealth Private Client Group LLC bought a new stake in shares of Workday in the third quarter worth $26,000. DT Investment Partners LLC bought a new stake in shares of Workday in the fourth quarter worth $27,000. LRI Investments LLC bought a new stake in shares of Workday in the fourth quarter worth $29,000. Finally, JPL Wealth Management LLC acquired a new position in Workday in the third quarter valued at $30,000. Institutional investors own 89.81% of the company's stock.

Key Stories Impacting Workday

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Workday beat estimates with Q1 adjusted EPS of $2.66 and revenue of $2.54 billion, topping forecasts and signaling that demand for its HR and finance software remains solid. Workday (WDAY) Q1 Earnings and Revenues Beat Estimates
• Positive Sentiment: The company raised its full-year profitability outlook, which is reassuring investors looking for margin expansion as Workday scales. Workday raises profit guidance after strong Q1 report
• Positive Sentiment: AI momentum is a major driver of sentiment: Workday said it has nearly $500 million in annualized recurring revenue from agentic AI solutions, helping reshape the stock’s narrative around enterprise AI adoption. Workday shares jump as AI demand eases investor concerns
• Positive Sentiment: Technicals and post-earnings buying are adding fuel, with traders bidding up the shares in premarket trading after a sharp selloff earlier this year. Workday stock surges after earnings; technicals point to a short-lived rally
• Neutral Sentiment: Analysts remain mixed: several firms reiterated positive views and raised targets, but others kept neutral/hold ratings, suggesting the rally may still depend on sustained AI monetization and execution. Workday: Improving Fundamentals and AI Momentum Offset by Full Valuation

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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