Workiva (NYSE:WK) Posts Earnings Results, Beats Estimates By $0.13 EPS

Key Points

• Workiva beat quarterly expectations: The software maker reported $0.77 in EPS, exceeding estimates by $0.13, while revenue of $255.29 million topped forecasts of $251.16 million.
• Shares slipped 0.1% to $61.15 despite the earnings beat. Workiva has a $3.43 billion market capitalization and trades at a high forward valuation, with a P/E ratio of 265.87.
• Analyst sentiment remains broadly positive, with 10 Buy ratings, one Hold and one Sell; the consensus rating is “Moderate Buy” with an average price target of $88.50.

Workiva (NYSE:WK - Get Free Report) posted its quarterly earnings data on Tuesday. The software maker reported $0.77 EPS for the quarter, topping analysts' consensus estimates of $0.64 by $0.13, FiscalAI reports. The company had revenue of $255.29 million for the quarter, compared to analyst estimates of $251.16 million. Workiva had a negative return on equity of 68.43% and a net margin of 1.53%.

Workiva Trading Down 0.1%

Shares of WK traded down $0.05 on Tuesday, reaching $61.15. 765,865 shares of the company's stock traded hands, compared to its average volume of 1,003,470. The stock's 50 day simple moving average is $51.58 and its two-hundred day simple moving average is $58.12. The stock has a market cap of $3.43 billion, a PE ratio of 265.87 and a beta of 0.46. Workiva has a 52-week low of $43.34 and a 52-week high of $97.10.

Insider Activity at Workiva

In related news, Director Robert H. Herz sold 1,000 shares of the company's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $49.69, for a total value of $49,690.00. Following the transaction, the director owned 34,802 shares in the company, valued at approximately $1,729,311.38. This represents a 2.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 4.77% of the stock is owned by insiders.

Institutional Investors Weigh In On Workiva

Several institutional investors have recently made changes to their positions in WK. Susquehanna Fundamental Investments LLC purchased a new stake in Workiva during the fourth quarter valued at about $205,000. Cibc World Markets Corp purchased a new position in shares of Workiva during the 4th quarter valued at about $287,000. EntryPoint Capital LLC bought a new stake in Workiva in the 4th quarter worth approximately $290,000. State of Wyoming boosted its stake in Workiva by 32.2% in the fourth quarter. State of Wyoming now owns 2,053 shares of the software maker's stock worth $177,000 after buying an additional 500 shares in the last quarter. Finally, Larson Financial Group LLC grew its position in Workiva by 595.1% during the third quarter. Larson Financial Group LLC now owns 2,864 shares of the software maker's stock valued at $247,000 after acquiring an additional 2,452 shares during the last quarter. Hedge funds and other institutional investors own 92.21% of the company's stock.

Analyst Upgrades and Downgrades

WK has been the topic of a number of research analyst reports. Weiss Ratings cut shares of Workiva from a "sell (d+)" rating to a "sell (d)" rating in a research report on Friday, May 22nd. Stifel Nicolaus cut their target price on Workiva from $79.00 to $65.00 and set a "buy" rating on the stock in a research report on Wednesday, May 6th. Zacks Research cut Workiva from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 6th. BTIG Research lowered their target price on Workiva from $90.00 to $80.00 and set a "buy" rating for the company in a report on Wednesday, May 6th. Finally, Stephens reissued an "overweight" rating and issued a $68.00 price target on shares of Workiva in a research note on Tuesday, May 26th. Ten equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $88.50.

About Workiva

Workiva, originally founded as WebFilings in 2008, delivers a cloud-native platform designed to streamline and connect data, documents and teams for reporting and compliance. Its flagship Workiva platform supports a range of applications including financial reporting, regulatory filings, internal controls documentation, risk management and environmental, social and governance (ESG) disclosures. By centralizing data and automating workflows, the company helps organizations improve accuracy, transparency and auditability across critical reporting processes.

The Workiva platform offers modular solutions that integrate with existing enterprise systems and data sources.

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