Workday, Inc. (NASDAQ:WDAY) Given Average Rating of “Hold” by Brokerages

Shares of Workday, Inc. (NASDAQ:WDAY) have been given an average recommendation of “Hold” by the thirty-nine analysts that are covering the company, Marketbeat reports. Two research analysts have rated the stock with a sell recommendation, seventeen have assigned a hold recommendation and twenty have given a buy recommendation to the company. The average 12-month target price among brokerages that have issued ratings on the stock in the last year is $206.3421.

WDAY has been the topic of a number of recent research reports. DA Davidson raised their price objective on shares of Workday from $135.00 to $190.00 and gave the company a “neutral” rating in a research note on Friday. BMO Capital Markets increased their price target on Workday from $182.00 to $230.00 and gave the company an “outperform” rating in a research note on Friday. Morgan Stanley raised their price target on Workday from $145.00 to $180.00 and gave the stock an “underweight” rating in a research report on Friday. Citigroup lifted their price objective on Workday from $139.00 to $201.00 and gave the stock a “neutral” rating in a research note on Friday. Finally, Sanford C. Bernstein upped their price objective on Workday from $216.00 to $238.00 and gave the company an “outperform” rating in a report on Friday.

Key Workday News

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Bright Horizons joined the Workday Wellness Partner Program, expanding Workday’s benefits ecosystem and helping employers manage family-care and education benefits through improved access and utilization insights. Bright Horizons Joins the Workday Wellness Partner Program
• Positive Sentiment: Analyst commentary highlights Workday’s long-term growth potential, supported by subscription revenue, artificial-intelligence adoption, and expanding profitability. A separate report said operating margin improved as these trends strengthened, though maintaining the gains will be important. Why Workday Is a Top Growth Stock Workday Operating Margin Expands
• Positive Sentiment: Several firms, including Monness Crespi & Hardt, KeyCorp, DA Davidson, BMO Capital Markets, and Needham, reportedly maintained or expressed bullish expectations for Workday’s shares. Barclays also retained its Buy rating. Barclays Sticks to Its Buy Rating
• Neutral Sentiment: Technical analysts said WDAY is testing resistance around $205, a level that has been important for several years. A breakout could attract buyers, while failure to clear it may encourage consolidation after the recent earnings-driven advance. Will Workday Break Out and Head Higher?
• Negative Sentiment: Workday is giving back part of its sharp post-earnings rally, suggesting profit-taking may be offsetting the company’s better-than-expected results. Cantor Fitzgerald and TD Cowen lowered their price targets to $205 and $210, respectively; Piper Sandler raised its target to $190, still below the recent trading range. Freedom Broker also lowered its rating. Cantor Fitzgerald Lowers Workday Price Target TD Cowen Lowers Workday Price Target

Insider Buying and Selling

In related news, insider Robert Enslin sold 5,374 shares of the stock in a transaction that occurred on Sunday, July 5th. The shares were sold at an average price of $134.90, for a total value of $724,952.60. Following the sale, the insider directly owned 239,469 shares in the company, valued at $32,304,368.10. This trade represents a 2.19% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, major shareholder David A. Duffield sold 107,500 shares of Workday stock in a transaction that occurred on Thursday, July 9th. The stock was sold at an average price of $136.74, for a total transaction of $14,699,550.00. Following the transaction, the insider directly owned 105,049 shares in the company, valued at $14,364,400.26. The trade was a 50.58% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 875,020 shares of company stock worth $113,938,503 over the last quarter. Insiders own 18.64% of the company’s stock.

Hedge Funds Weigh In On Workday

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Brighton Jones LLC lifted its holdings in Workday by 230.2% during the fourth quarter. Brighton Jones LLC now owns 4,005 shares of the software maker’s stock worth $1,033,000 after acquiring an additional 2,792 shares in the last quarter. Empowered Funds LLC raised its position in shares of Workday by 12.1% during the first quarter. Empowered Funds LLC now owns 11,142 shares of the software maker’s stock worth $2,602,000 after purchasing an additional 1,206 shares during the period. Geneos Wealth Management Inc. lifted its holdings in shares of Workday by 211.7% during the 1st quarter. Geneos Wealth Management Inc. now owns 187 shares of the software maker’s stock valued at $44,000 after purchasing an additional 127 shares in the last quarter. Sivia Capital Partners LLC acquired a new position in shares of Workday in the 2nd quarter valued at approximately $281,000. Finally, NewEdge Advisors LLC grew its position in shares of Workday by 32.0% in the 2nd quarter. NewEdge Advisors LLC now owns 6,597 shares of the software maker’s stock valued at $1,583,000 after purchasing an additional 1,600 shares during the period. 89.81% of the stock is owned by institutional investors.

Workday Stock Down 3.6%

Shares of NASDAQ WDAY opened at $197.45 on Tuesday. The firm has a market capitalization of $48.77 billion, a PE ratio of 40.05, a price-to-earnings-growth ratio of 2.17 and a beta of 1.08. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.31. Workday has a 1 year low of $110.36 and a 1 year high of $249.85. The firm’s 50-day moving average is $159.40 and its 200-day moving average is $141.02.

Workday (NASDAQ:WDAY) last issued its quarterly earnings results on Thursday, August 27th. The software maker reported $2.75 EPS for the quarter, topping the consensus estimate of $2.61 by $0.14. The company had revenue of $2.65 billion during the quarter, compared to analysts’ expectations of $2.64 billion. Workday had a net margin of 12.32% and a return on equity of 20.95%. Workday’s revenue was up 12.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.21 EPS. Equities analysts expect that Workday will post 5.39 EPS for the current year.

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.