Workday (NASDAQ:WDAY) Stock Price Up 4.6% - Here's Why

Key Points

• Workday shares rose 4.6% as the stock traded higher on Tuesday, reaching an intraday high of $135.93 after closing at $128.88 the day before.
• Recent news has been supportive, with Workday saying it will expand its workforce in India and deepen AI investments, plus launch an AI-focused accelerator program with Anthropic and LISC.
• Wall Street remains mixed but generally constructive: several analysts lowered price targets, yet the stock still carries a Moderate Buy consensus with a target of about $199.71, and investors are watching its upcoming earnings report for the next catalyst.

Shares of Workday, Inc. (NASDAQ:WDAY - Get Free Report) traded up 4.6% on Tuesday . The stock traded as high as $135.93 and last traded at $134.7740. 825,916 shares were traded during mid-day trading, a decline of 83% from the average session volume of 4,991,870 shares. The stock had previously closed at $128.88.

Key Workday News

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Workday said it will keep expanding its workforce in India and deepen AI investments, signaling continued commitment to growth in a major global talent hub and to products that could support long-term demand. Reuters article
• Positive Sentiment: Workday partnered with Anthropic and the Local Initiatives Support Corporation to launch an AI-focused Foundation Solopreneurship Accelerator Program, reinforcing its AI strategy and brand positioning in emerging use cases. Yahoo Finance article
• Neutral Sentiment: Investors are looking ahead to Workday’s fiscal Q1 2027 results on May 21, with expectations for healthy revenue growth driven by demand for HCM, finance, and AI-powered products. Upcoming earnings could be the next major catalyst for the stock. Yahoo Finance article
• Neutral Sentiment: BTIG reaffirmed its Buy rating on Workday and set a $175 price target, but the broader analyst backdrop remains mixed as some firms stay cautious on the software sector. Benzinga article
• Negative Sentiment: Citi reportedly cut Workday to Neutral, highlighting ongoing Wall Street skepticism after the stock’s large pullback over the past year and concerns that AI may reshape parts of the SaaS model. TheStreet article

Analysts Set New Price Targets

A number of analysts have commented on the stock. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $200.00 price target on shares of Workday in a research report on Monday, February 23rd. UBS Group reduced their target price on Workday from $170.00 to $130.00 and set a "neutral" rating for the company in a research note on Wednesday, February 25th. Rosenblatt Securities decreased their target price on shares of Workday from $180.00 to $150.00 and set a "buy" rating for the company in a research report on Wednesday, February 25th. The Goldman Sachs Group dropped their target price on Workday from $238.00 to $206.00 and set a "neutral" rating on the stock in a report on Wednesday, February 25th. Finally, Raymond James Financial reissued a "market perform" rating on shares of Workday in a research report on Monday, February 9th. Nineteen analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Workday presently has a consensus rating of "Moderate Buy" and a consensus price target of $199.71.

Workday Stock Up 0.2%

The company has a 50 day moving average of $127.38 and a 200-day moving average of $171.86. 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 company has a market cap of $33.20 billion, a P/E ratio of 50.18, a price-to-earnings-growth ratio of 1.21 and a beta of 1.04.

Workday (NASDAQ:WDAY - Get Free Report) last issued its quarterly earnings data on Tuesday, February 24th. The software maker reported $2.47 EPS for the quarter, topping the consensus estimate of $2.32 by $0.15. The company had revenue of $2.53 billion during the quarter, compared to analyst estimates of $2.52 billion. Workday had a return on equity of 13.37% and a net margin of 7.26%.Workday's revenue was up 14.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.92 earnings per share. On average, equities analysts predict that Workday, Inc. will post 5.11 earnings per share for the current year.

Insider Transactions at Workday

In other Workday news, insider Gerrit S. Kazmaier sold 9,356 shares of the firm's stock in a transaction that occurred on Tuesday, April 7th. The stock was sold at an average price of $128.39, for a total transaction of $1,201,216.84. Following the completion of the transaction, the insider owned 165,074 shares in the company, valued at $21,193,850.86. This trade represents a 5.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 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, major shareholder David A. Duffield sold 107,500 shares of the stock in a transaction that occurred on Thursday, April 9th. The shares were sold at an average price of $112.33, for a total value of $12,075,475.00. Following the transaction, the insider owned 105,049 shares of the company's stock, valued at $11,800,154.17. This represents a 50.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 989,814 shares of company stock worth $131,576,291. Company insiders own 18.64% of the company's stock.

Institutional Trading of Workday

Institutional investors have recently added to or reduced their stakes in the company. First Eagle Investment Management LLC bought a new position in Workday during the 3rd quarter worth about $556,252,000. Phoenix Financial Ltd. acquired a new position in Workday in the third quarter valued at approximately $2,000,000. Rakuten Investment Management Inc. acquired a new stake in shares of Workday during the third quarter valued at about $124,718,000. Robeco Institutional Asset Management B.V. grew its position in Workday by 18.3% in the 4th quarter. Robeco Institutional Asset Management B.V. now owns 571,766 shares of the software maker's stock valued at $122,804,000 after acquiring an additional 88,384 shares in the last quarter. Finally, Sienna Gestion acquired a new position in shares of Workday in the third quarter worth $7,948,000. Institutional investors own 89.81% of the company's stock.

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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