Workday's (WDAY) Outperform Rating Reaffirmed at Royal Bank Of Canada

Key Points

• Workday's stock has been reaffirmed with an "outperform" rating by Royal Bank Of Canada, suggesting a price target of $340.00, indicating a potential upside of 59.17%.
• The company reported earnings of $2.21 per share, exceeding analyst estimates, and had a revenue increase of 12.6% year-over-year.
• Despite mixed ratings from various analysts, Workday's consensus rating remains a "Moderate Buy" with an average target price of $285.36.

Workday (NASDAQ:WDAY - Get Free Report)'s stock had its "outperform" rating reissued by analysts at Royal Bank Of Canada in a report released on Friday,Benzinga reports. They presently have a $340.00 price target on the software maker's stock. Royal Bank Of Canada's target price would suggest a potential upside of 59.17% from the stock's previous close.

Other research analysts have also issued reports about the stock. JMP Securities reaffirmed a "market outperform" rating and issued a $315.00 price objective on shares of Workday in a research note on Friday, May 23rd. Piper Sandler restated an "underweight" rating and issued a $235.00 target price (down previously from $255.00) on shares of Workday in a report on Thursday, July 10th. Wall Street Zen upgraded shares of Workday from a "hold" rating to a "buy" rating in a report on Sunday, July 13th. Bank of America dropped their price target on shares of Workday from $295.00 to $278.00 and set a "buy" rating on the stock in a research report on Tuesday. Finally, KeyCorp dropped their price target on shares of Workday from $325.00 to $285.00 and set an "overweight" rating on the stock in a research report on Friday. Two analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $285.36.

Workday Stock Down 6.1%

Shares of NASDAQ WDAY opened at $213.6060 on Friday. The firm has a market cap of $57.03 billion, a PE ratio of 119.34, a P/E/G ratio of 3.44 and a beta of 1.24. Workday has a 12-month low of $205.33 and a 12-month high of $294.00. The company's fifty day simple moving average is $232.85 and its 200 day simple moving average is $242.98. The company has a quick ratio of 2.07, a current ratio of 2.07 and a debt-to-equity ratio of 0.33.

Workday (NASDAQ:WDAY - Get Free Report) last issued its earnings results on Thursday, August 21st. The software maker reported $2.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.09 by $0.12. The business had revenue of $2.35 billion for the quarter, compared to analyst estimates of $2.34 billion. Workday had a net margin of 5.60% and a return on equity of 8.00%. Workday's revenue was up 12.6% on a year-over-year basis. During the same period in the prior year, the firm earned $1.75 earnings per share. Workday has set its FY 2026 guidance at EPS. Q3 2026 guidance at EPS. As a group, sell-side analysts forecast that Workday will post 2.63 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Workday news, major shareholder David A. Duffield sold 73,971 shares of the stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $238.66, for a total transaction of $17,653,918.86. Following the completion of the sale, the insider owned 102,997 shares of the company's stock, valued at $24,581,264.02. This represents a 41.80% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director George J. Still, Jr. sold 7,500 shares of the stock in a transaction on Thursday, June 5th. The shares were sold at an average price of $248.41, for a total transaction of $1,863,075.00. Following the sale, the director directly owned 67,500 shares of the company's stock, valued at $16,767,675. The trade was a 10.00% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 329,005 shares of company stock worth $79,203,523. 19.31% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Workday

Several institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its position in shares of Workday by 2.5% in the 2nd quarter. Vanguard Group Inc. now owns 21,114,184 shares of the software maker's stock worth $5,067,404,000 after purchasing an additional 515,529 shares during the period. State Street Corp lifted its position in shares of Workday by 3.3% in the 2nd quarter. State Street Corp now owns 9,600,516 shares of the software maker's stock worth $2,304,124,000 after purchasing an additional 303,713 shares during the period. Geode Capital Management LLC lifted its position in shares of Workday by 2.9% in the 2nd quarter. Geode Capital Management LLC now owns 4,952,938 shares of the software maker's stock worth $1,183,112,000 after purchasing an additional 140,042 shares during the period. T. Rowe Price Investment Management Inc. lifted its position in shares of Workday by 47.5% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 3,764,598 shares of the software maker's stock worth $879,147,000 after purchasing an additional 1,211,659 shares during the period. Finally, The Manufacturers Life Insurance Company lifted its position in shares of Workday by 0.4% in the 1st quarter. The Manufacturers Life Insurance Company now owns 3,736,609 shares of the software maker's stock worth $872,610,000 after purchasing an additional 14,354 shares during the period. Hedge funds and other institutional investors own 89.81% of the company's stock.

About Workday

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.