Workiva (NYSE:WK) Shares Gap Up After Strong Earnings

Key Points

• Workiva Inc. shares gapped up significantly, opening at $74.40 after closing at $63.83, following a strong earnings report that included an EPS of $0.19, surpassing estimates of $0.05.
• The company's revenue reached $215.19 million for the quarter, up 21.2% year-over-year, exceeding the consensus estimate of $208.92 million.
• Despite recent price target reductions by several analysts, Workiva maintains a consensus rating of "Moderate Buy" with a target price of $100.30.

Workiva Inc. (NYSE:WK - Get Free Report)'s stock price gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $63.83, but opened at $74.40. Workiva shares last traded at $78.48, with a volume of 524,802 shares.

The software maker reported $0.19 earnings per share for the quarter, topping the consensus estimate of $0.05 by $0.14. The business had revenue of $215.19 million for the quarter, compared to the consensus estimate of $208.92 million. During the same quarter in the prior year, the company earned $0.16 earnings per share. Workiva's quarterly revenue was up 21.2% compared to the same quarter last year.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on WK shares. Truist Financial decreased their target price on Workiva from $120.00 to $95.00 and set a "buy" rating for the company in a research note on Monday, April 7th. Raymond James Financial reduced their price objective on Workiva from $105.00 to $95.00 and set an "outperform" rating for the company in a research note on Friday. The Goldman Sachs Group cut their target price on Workiva from $118.00 to $105.00 and set a "buy" rating on the stock in a research report on Thursday, April 17th. Stephens reaffirmed an "overweight" rating and set a $95.00 target price on shares of Workiva in a research report on Thursday, May 22nd. Finally, Wall Street Zen raised Workiva from a "hold" rating to a "buy" rating in a research report on Saturday. Ten investment analysts have rated the stock with a buy rating, According to MarketBeat.com, the company has an average rating of "Buy" and a consensus target price of $99.22.

Hedge Funds Weigh In On Workiva

Large investors have recently modified their holdings of the business. World Investment Advisors increased its stake in Workiva by 2.7% in the 4th quarter. World Investment Advisors now owns 5,135 shares of the software maker's stock worth $562,000 after acquiring an additional 135 shares during the last quarter. Skandinaviska Enskilda Banken AB publ boosted its holdings in Workiva by 8.7% during the 1st quarter. Skandinaviska Enskilda Banken AB publ now owns 2,825 shares of the software maker's stock valued at $214,000 after acquiring an additional 225 shares during the period. Xponance Inc. boosted its holdings in Workiva by 6.7% during the 1st quarter. Xponance Inc. now owns 3,850 shares of the software maker's stock valued at $292,000 after acquiring an additional 241 shares during the period. Summit Investment Advisors Inc. lifted its holdings in Workiva by 5.2% in the 4th quarter. Summit Investment Advisors Inc. now owns 5,284 shares of the software maker's stock worth $579,000 after buying an additional 260 shares during the period. Finally, Atria Investments Inc lifted its holdings in Workiva by 6.8% in the 2nd quarter. Atria Investments Inc now owns 4,629 shares of the software maker's stock worth $317,000 after buying an additional 293 shares during the period. Hedge funds and other institutional investors own 92.21% of the company's stock.

Workiva Trading Down 4.9%

The firm has a market cap of $4.39 billion, a PE ratio of -65.66 and a beta of 0.86. The firm has a fifty day simple moving average of $68.12 and a two-hundred day simple moving average of $76.74.

Workiva Company Profile

Workiva Inc, together with its subsidiaries, provides cloud-based reporting solutions in the United States and internationally. The company offers Workiva platform, a multi-tenant cloud software that provides data linking capabilities; audit trail services; administrators access management; and allows customers to connect data from multiple enterprise resource planning, human capital management, and customer relationship management systems, as well as other third-party cloud and on-premise applications.