Key Points
- Major shareholder David Duffield sold 99,613 Workday shares for approximately $19.1 million, reducing his direct holdings by 48.67% to 105,049 shares. The sale was executed under a pre-arranged Rule 10b5-1 plan.
- Workday exceeded quarterly expectations, reporting $2.75 EPS versus the $2.61 consensus and $2.65 billion in revenue, up 12.8% year over year.
- Analyst sentiment is mixed but generally favorable: 20 analysts rate the stock a Buy, 18 a Hold and two a Sell, producing an overall “Hold” rating and an average price target of $206.34.
Workday, Inc. (NASDAQ:WDAY - Get Free Report) major shareholder David Duffield sold 99,613 shares of the stock in a transaction dated Wednesday, September 23rd. The shares were sold at an average price of $192.14, for a total value of $19,139,641.82. Following the transaction, the insider directly owned 105,049 shares in the company, valued at approximately $20,184,114.86. This represents a 48.67% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Major shareholders that own 10% or more of a company's shares are required to disclose their sales and purchases with the SEC.
Workday Stock Down 0.7%
Shares of WDAY stock opened at $190.99 on Friday. The stock's 50 day simple moving average is $181.06 and its 200 day simple moving average is $147.67. Workday, Inc. has a twelve month low of $110.36 and a twelve month high of $249.85. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.91 and a current ratio of 0.91. The company has a market capitalization of $46.03 billion, a price-to-earnings ratio of 38.74, a PEG ratio of 1.90 and a beta of 1.08.
Workday (NASDAQ:WDAY - Get Free Report) last announced its earnings results on Thursday, August 27th. The software maker reported $2.75 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.61 by $0.14. Workday had a return on equity of 20.95% and a net margin of 12.32%.The firm had revenue of $2.65 billion during the quarter, compared to analysts' expectations of $2.64 billion. During the same quarter in the prior year, the business earned $2.21 earnings per share. The company's revenue was up 12.8% on a year-over-year basis. As a group, research analysts predict that Workday, Inc. will post 5.3 EPS for the current year.
Analyst Ratings Changes
WDAY has been the subject of several recent analyst reports. Oppenheimer increased their target price on Workday from $165.00 to $220.00 and gave the company an "outperform" rating in a research note on Monday, August 24th. KeyCorp increased their target price on shares of Workday from $158.00 to $215.00 and gave the company an "overweight" rating in a research note on Friday, August 28th. Needham & Company LLC upped their price target on Workday from $180.00 to $230.00 and gave the company a "buy" rating in a report on Friday, August 28th. BTIG Research downgraded Workday from a "buy" rating to a "neutral" rating in a research report on Monday, August 17th. Finally, Monness Crespi & Hardt boosted their price objective on Workday from $202.00 to $218.00 and gave the company a "buy" rating in a research report on Friday, August 28th. Twenty research analysts have rated the stock with a Buy rating, eighteen have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $206.34.
Check Out Our Latest Stock Analysis on WDAY
Institutional Trading of Workday
Large investors have recently bought and sold shares of the stock. DT Investment Partners LLC bought a new position in shares of Workday during the fourth quarter valued at $27,000. Western Wealth Management LLC bought a new stake in shares of Workday in the 1st quarter worth about $39,000. Manning & Napier Advisors LLC acquired a new stake in shares of Workday during the 2nd quarter worth about $42,000. Elevation Wealth Partners LLC lifted its holdings in Workday by 1,097.0% during the 2nd quarter. Elevation Wealth Partners LLC now owns 395 shares of the software maker's stock valued at $48,000 after purchasing an additional 362 shares during the last quarter. Finally, Reflection Asset Management acquired a new position in Workday in the fourth quarter valued at about $66,000. 89.81% of the stock is currently owned by institutional investors.
Key Stories Impacting Workday
Here are the key news stories impacting Workday this week:
- Positive Sentiment: Workday launched Workday Total Benefits, a platform that brings employees’ health, wealth and wellbeing resources together in one place. The company also introduced an AI-powered self-service agent to provide personalized benefits guidance, potentially increasing customer engagement and expanding Workday’s value within human-capital-management software. Workday Launches Workday Total Benefits and Introduces Benefits Guidance Through Self-Service Agent
- Positive Sentiment: Workday expanded its payroll ecosystem through integrations with Cash App and Experian. Eligible U.S. employees will be able to direct paychecks to Cash App, while verification capabilities may improve payroll onboarding and account validation. The partnerships could strengthen Workday’s payroll offering and support additional customer adoption. Workday Expands Payroll and Verification Ecosystem Through Cash App and Experian Integrations
- Positive Sentiment: Commentary argues that Workday could be substantially undervalued following its latest quarterly earnings beat and new payroll deals. The thesis highlights continued revenue growth, earnings upside and a broader payroll opportunity, although the 65% valuation estimate is an analyst opinion rather than company guidance. Workday Could Be 65% Undervalued
- Neutral Sentiment: Reports discussing Workday’s AI benefits hub and partner network suggest these initiatives may reinforce the long-term bullish case, but they do not provide a new financial forecast or confirmed near-term revenue impact. Does Workday’s New AI Benefits Hub Reshape the Bull Case?
- Neutral Sentiment: Reported short interest was zero shares as of September 24, offering no evidence of meaningful short-selling pressure or a potential short squeeze.
- Negative Sentiment: Major shareholder David Duffield sold 99,613 shares worth approximately $19.1 million, reducing his position by nearly 49%. The transaction was made under a pre-arranged Rule 10b5-1 plan, which reduces its significance as a discretionary bearish signal, but the sale may still pressure investor sentiment. SEC Filing
Workday Company Profile
(
Get Free Report)
Workday, Inc develops cloud-based enterprise software designed to help organizations manage finance, human resources and related business operations. Its platform provides tools for financial management, accounting, procurement, expenses, payroll, workforce management, recruiting, talent management, employee experience and enterprise planning.
The company also offers analytics, reporting and artificial intelligence capabilities that support budgeting, forecasting, workforce planning and business decision-making.
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