Workday (NASDAQ:WDAY) Stock Price Up 4.9% - Time to Buy?

Key Points

• Workday shares rose 4.9% in Tuesday trading, reaching as high as $144.87 after closing at $137.99, though volume was well below average.
• Analyst sentiment remains broadly positive, with an average rating of “Moderate Buy” and a consensus price target of $184, even though some firms trimmed targets and Weiss Ratings reiterated a sell rating.
• Recent earnings were solid: Workday beat EPS and revenue estimates for the quarter, with revenue up 13.5% year over year, while insider selling and heavy institutional ownership continue to be notable factors.

Workday, Inc. (NASDAQ:WDAY - Get Free Report) was up 4.9% during mid-day trading on Tuesday . The company traded as high as $144.87 and last traded at $144.7470. Approximately 1,242,878 shares were traded during mid-day trading, a decline of 76% from the average daily volume of 5,155,302 shares. The stock had previously closed at $137.99.

Analyst Ratings Changes

Several research firms recently issued reports on WDAY. Needham & Company LLC dropped their target price on shares of Workday from $300.00 to $180.00 and set a "buy" rating on the stock in a report on Friday, May 22nd. Weiss Ratings reissued a "sell (d+)" rating on shares of Workday in a research note on Wednesday, June 17th. KeyCorp raised their target price on Workday from $155.00 to $158.00 and gave the stock an "overweight" rating in a research note on Friday, May 22nd. Cantor Fitzgerald reiterated an "overweight" rating on shares of Workday in a report on Wednesday, June 17th. Finally, Wells Fargo & Company increased their price target on Workday from $180.00 to $185.00 and gave the stock an "overweight" rating in a report on Friday, May 22nd. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $184.00.

Workday Trading Up 3.6%

The business has a 50 day moving average of $127.76 and a two-hundred day moving average of $149.38. The firm has a market capitalization of $35.31 billion, a price-to-earnings ratio of 44.48, a P/E/G ratio of 1.45 and a beta of 1.11. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.01 and a current ratio of 1.01.

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 analysts' consensus estimates of $2.51 by $0.15. Workday had a return on equity of 14.75% and a net margin of 8.60%.The firm had revenue of $2.54 billion during the quarter, compared to analysts' expectations of $2.52 billion. During the same quarter last year, the firm posted $2.23 earnings per share. The company's revenue for the quarter was up 13.5% compared to the same quarter last year. Equities analysts predict that Workday, Inc. will post 5.34 EPS for the current year.

Insiders Place Their Bets

In other Workday news, CAO Mark S. Garfield sold 1,585 shares of Workday stock in a transaction dated Friday, April 10th. The stock was sold at an average price of $113.05, for a total transaction of $179,184.25. Following the completion of the transaction, the chief accounting officer owned 31,467 shares in the company, valued at approximately $3,557,344.35. The trade was a 4.80% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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 stock in a transaction that occurred on Thursday, April 9th. The stock was sold at an average price of $112.33, for a total value of $12,075,475.00. Following the completion of the sale, the insider directly owned 105,049 shares of the company's stock, valued at approximately $11,800,154.17. This trade 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. Insiders sold 754,085 shares of company stock worth $94,845,834 over the last ninety days. Insiders own 18.64% of the company's stock.

Institutional Investors Weigh In On Workday

Institutional investors and hedge funds have recently bought and sold shares of the stock. Norges Bank purchased a new stake in Workday during the fourth quarter worth about $448,804,000. Harvest Fund Management Co. Ltd grew its position in shares of Workday by 40.1% during the 4th quarter. Harvest Fund Management Co. Ltd now owns 55,605 shares of the software maker's stock valued at $11,943,000 after acquiring an additional 15,903 shares during the period. Robeco Institutional Asset Management B.V. grew its position in shares of Workday by 18.3% during 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 during the period. Aurora Investment Counsel purchased a new stake in shares of Workday during the 4th quarter worth approximately $2,357,000. Finally, Morningstar Investment Management LLC raised its holdings in shares of Workday by 127.2% in the 4th quarter. Morningstar Investment Management LLC now owns 27,043 shares of the software maker's stock worth $5,808,000 after purchasing an additional 15,138 shares during the period. 89.81% of the stock is owned by hedge funds and other institutional investors.

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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