Workday (NASDAQ:WDAY) Shares Gap Down Following Analyst Downgrade

Workday, Inc. (NASDAQ:WDAY)’s stock price gapped down before the market opened on Wednesday after Loop Capital lowered their price target on the stock from $270.00 to $242.00. The stock had previously closed at $270.19, but opened at $237.50. Loop Capital currently has a hold rating on the stock. Workday shares last traded at $251.01, with a volume of 7,090,630 shares traded.

A number of other analysts have also commented on WDAY. Barclays decreased their price objective on Workday from $314.00 to $305.00 and set an “overweight” rating for the company in a report on Wednesday. Morgan Stanley lowered their target price on shares of Workday from $325.00 to $315.00 and set an “overweight” rating for the company in a report on Friday, August 23rd. BMO Capital Markets reissued an “outperform” rating and set a $300.00 price target on shares of Workday in a research report on Wednesday, September 18th. Bank of America reduced their price objective on shares of Workday from $310.00 to $285.00 and set a “buy” rating for the company in a research report on Wednesday. Finally, Needham & Company LLC reissued a “buy” rating and set a $300.00 target price on shares of Workday in a research report on Monday. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating and twenty-one have given a buy rating to the company’s stock. According to data from MarketBeat, Workday presently has a consensus rating of “Moderate Buy” and a consensus target price of $288.14.

Insider Activity at Workday

In related news, Director George J. Still, Jr. sold 7,500 shares of Workday stock in a transaction on Thursday, September 5th. The stock was sold at an average price of $255.45, for a total transaction of $1,915,875.00. Following the completion of the sale, the director now owns 90,000 shares of the company’s stock, valued at approximately $22,990,500. This trade represents a 7.69 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Richard Harry Sauer sold 3,134 shares of the company’s stock in a transaction dated Tuesday, October 8th. The stock was sold at an average price of $235.78, for a total value of $738,934.52. Following the completion of the transaction, the insider now owns 85,795 shares in the company, valued at $20,228,745.10. This represents a 3.52 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 359,954 shares of company stock valued at $88,742,132. Corporate insiders own 20.00% of the company’s stock.

Hedge Funds Weigh In On Workday

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Capital Performance Advisors LLP purchased a new stake in shares of Workday during the 3rd quarter valued at $26,000. Meeder Asset Management Inc. increased its stake in Workday by 42.2% in the third quarter. Meeder Asset Management Inc. now owns 145 shares of the software maker’s stock valued at $35,000 after acquiring an additional 43 shares during the last quarter. True Wealth Design LLC raised its position in Workday by 4,766.7% during the third quarter. True Wealth Design LLC now owns 146 shares of the software maker’s stock valued at $36,000 after purchasing an additional 143 shares in the last quarter. New Millennium Group LLC lifted its stake in Workday by 177.4% during the third quarter. New Millennium Group LLC now owns 147 shares of the software maker’s stock worth $36,000 after purchasing an additional 94 shares during the last quarter. Finally, SouthState Corp boosted its holdings in shares of Workday by 614.3% in the 2nd quarter. SouthState Corp now owns 150 shares of the software maker’s stock worth $34,000 after purchasing an additional 129 shares in the last quarter. Hedge funds and other institutional investors own 89.81% of the company’s stock.

Workday Price Performance

The stock has a market capitalization of $67.15 billion, a P/E ratio of 44.15, a price-to-earnings-growth ratio of 5.31 and a beta of 1.35. The company has a debt-to-equity ratio of 0.36, a quick ratio of 2.04 and a current ratio of 2.04. The firm has a 50-day moving average price of $248.62 and a 200 day moving average price of $237.33.

Workday (NASDAQ:WDAY) last issued its quarterly earnings results on Tuesday, November 26th. The software maker reported $1.89 EPS for the quarter, beating analysts’ consensus estimates of $1.76 by $0.13. The business had revenue of $2.16 billion for the quarter, compared to analysts’ expectations of $2.13 billion. Workday had a net margin of 19.59% and a return on equity of 5.34%. The business’s quarterly revenue was up 15.8% on a year-over-year basis. During the same period last year, the business earned $0.47 earnings per share. On average, analysts expect that Workday, Inc. will post 2.4 EPS for the current year.

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.