Workday (NASDAQ:WDAY) Upgraded to "Strong-Buy" at Cantor Fitzgerald

Key Points

• Cantor Fitzgerald has upgraded Workday's stock to a "strong-buy" rating, indicating increased confidence in the company's performance.
• Despite the upgrade, several other brokerages have lowered their target prices, with the average target now at $286.81, reflecting mixed opinions on the stock's value.
• Workday's most recent earnings report showed a 12.6% revenue increase year-over-year, with earnings per share exceeding consensus estimates.

Cantor Fitzgerald upgraded shares of Workday (NASDAQ:WDAY - Free Report) to a strong-buy rating in a research note issued to investors on Thursday,Zacks.com reports.

Other equities analysts have also issued reports about the stock. Morgan Stanley set a $255.00 target price on shares of Workday and gave the company an "equal weight" rating in a report on Friday, May 23rd. DA Davidson lifted their target price on shares of Workday from $230.00 to $250.00 and gave the company a "neutral" rating in a report on Friday, May 23rd. Oppenheimer cut their target price on shares of Workday from $300.00 to $270.00 and set an "outperform" rating for the company in a report on Friday, August 22nd. Bank of America cut their price target on shares of Workday from $295.00 to $278.00 and set a "buy" rating for the company in a report on Tuesday, August 19th. Finally, Barclays lowered their target price on shares of Workday from $321.00 to $298.00 and set an "overweight" rating on the stock in a research note on Monday, August 18th. Three analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Workday has a consensus rating of "Moderate Buy" and an average price target of $286.81.

Workday Stock Performance

WDAY stock traded down $0.64 during trading on Thursday, reaching $222.75. The company had a trading volume of 2,391,186 shares, compared to its average volume of 2,514,871. The company has a debt-to-equity ratio of 0.33, a quick ratio of 2.10 and a current ratio of 2.10. Workday has a twelve month low of $205.33 and a twelve month high of $294.00. The firm has a 50-day simple moving average of $229.28 and a 200-day simple moving average of $238.72. The company has a market cap of $59.47 billion, a price-to-earnings ratio of 103.13, a price-to-earnings-growth ratio of 3.11 and a beta of 1.12.

Workday (NASDAQ:WDAY - Get Free Report) last announced its quarterly earnings data on Thursday, August 21st. The software maker reported $2.21 EPS for the quarter, beating the consensus estimate of $2.09 by $0.12. Workday had a net margin of 6.51% and a return on equity of 9.74%. The business had revenue of $2.35 billion during the quarter, compared to analysts' expectations of $2.34 billion. During the same period in the previous year, the business posted $1.75 EPS. The business's quarterly revenue was up 12.6% compared to the same quarter last year. Workday has set its FY 2026 guidance at EPS. Q3 2026 guidance at EPS. As a group, sell-side analysts expect that Workday will post 2.63 earnings per share for the current year.

Insider Buying and Selling at Workday

In other news, insider Richard Harry Sauer sold 1,160 shares of the stock in a transaction dated Thursday, September 11th. The shares were sold at an average price of $226.63, for a total transaction of $262,890.80. Following the sale, the insider owned 96,916 shares of the company's stock, valued at approximately $21,964,073.08. This represents a 1.18% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Zane Rowe sold 6,000 shares of the stock in a transaction dated 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 sale, the chief financial officer directly owned 178,418 shares in the company, valued at $42,747,168.62. This represents a 3.25% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 304,540 shares of company stock valued at $73,169,545. Corporate insiders own 19.31% of the company's stock.

Institutional Trading of Workday

Hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. increased its stake in shares of Workday by 2.5% during the second quarter. Vanguard Group Inc. now owns 21,114,184 shares of the software maker's stock worth $5,067,404,000 after buying an additional 515,529 shares during the period. State Street Corp increased its stake in shares of Workday by 3.3% during the second quarter. State Street Corp now owns 9,600,516 shares of the software maker's stock worth $2,304,124,000 after buying an additional 303,713 shares during the period. Geode Capital Management LLC increased its stake in Workday by 2.9% in the second quarter. Geode Capital Management LLC now owns 4,952,938 shares of the software maker's stock valued at $1,183,112,000 after purchasing an additional 140,042 shares during the last quarter. T. Rowe Price Investment Management Inc. increased its stake in Workday by 47.5% in the first quarter. T. Rowe Price Investment Management Inc. now owns 3,764,598 shares of the software maker's stock valued at $879,147,000 after purchasing an additional 1,211,659 shares during the last quarter. Finally, The Manufacturers Life Insurance Company increased its stake in Workday by 0.4% in the first quarter. The Manufacturers Life Insurance Company now owns 3,736,609 shares of the software maker's stock valued at $872,610,000 after purchasing an additional 14,354 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.