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

Shares of Workday, Inc. (NASDAQ:WDAY) have been given a consensus recommendation of “Hold” by the forty analysts that are presently covering the company, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a sell rating, eighteen have given a hold rating and twenty have assigned a buy rating to the company. The average 1-year price objective among analysts that have updated their coverage on the stock in the last year is $206.34.

WDAY has been the subject of a number of research reports. Oppenheimer boosted their price target on Workday from $165.00 to $220.00 and gave the company an “outperform” rating in a report on Monday, August 24th. CLSA started coverage on Workday in a report on Monday, July 20th. They set an “underperform” rating and a $92.00 price objective on the stock. Robert W. Baird lifted their target price on Workday from $190.00 to $215.00 and gave the company an “outperform” rating in a research report on Friday, August 14th. Bank of America upped their target price on Workday from $140.00 to $205.00 and gave the stock a “neutral” rating in a report on Wednesday, August 19th. Finally, Morgan Stanley increased their price target on Workday from $145.00 to $180.00 and gave the stock an “underweight” rating in a research report on Friday, August 28th.

Workday Trading Down 0.3%

WDAY stock opened at $186.14 on Friday. The company has a market capitalization of $44.86 billion, a PE ratio of 37.76, a P/E/G ratio of 1.87 and a beta of 1.07. Workday has a 12 month low of $110.36 and a 12 month high of $247.40. The firm’s 50-day moving average is $187.10 and its 200 day moving average is $149.68. The company has a debt-to-equity ratio of 0.31, a current ratio of 0.91 and a quick ratio of 0.91.

Workday (NASDAQ:WDAY) last released its quarterly earnings data on Thursday, August 27th. The software maker reported $2.75 earnings per share (EPS) for the quarter, beating 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%. The firm’s quarterly revenue was up 12.8% on a year-over-year basis. During the same period in the previous year, the company earned $2.21 EPS. On average, research analysts anticipate that Workday will post 5.33 EPS for the current year.

Trending Headlines about Workday

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Workday launched operations in the United Arab Emirates, including a Dubai office and expanded local leadership. The move broadens its addressable market for cloud-based HR, finance and IT software and supports the company’s longer-term artificial-intelligence growth strategy. Workday UAE Launch
• Positive Sentiment: Some analysts view the restructuring as a potential efficiency improvement. William Blair reaffirmed a Buy rating, citing Workday’s valuation, cost controls and margin-expansion potential, while commentary suggested concentrating resources could strengthen its AI strategy. Workday Analyst Rating
• Neutral Sentiment: Workday entered a new credit agreement that expands or replaces its revolving credit facility. The additional liquidity may provide financial flexibility, but the announcement does not change the company’s operating outlook. Workday Credit Facility
• Negative Sentiment: Workday plans to eliminate approximately 2.5% of its workforce, primarily in Product and Technology, and reduce selected office space. The actions are expected to generate roughly $65 million to $80 million in charges, mostly in fiscal 2027’s third quarter, weighing on GAAP operating margins. Workday Workforce Reduction
• Negative Sentiment: Although Workday left its subscription-revenue and non-GAAP forecasts unchanged, it indicated that GAAP operating-margin expectations would be materially lower because of restructuring charges. That near-term hit to reported profitability is the primary catalyst behind the stock’s decline.
• Negative Sentiment: Major shareholder David Duffield sold 98,971 shares worth about $18.7 million, reducing his ownership by roughly 48.5%. The sale was executed under a pre-arranged Rule 10b5-1 plan, which limits its signaling value, but the transaction may still weigh on investor sentiment. SEC Insider Transaction Filing

Insider Buying and Selling

In other news, CFO Zane Rowe sold 6,000 shares of the business’s stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $143.70, for a total value of $862,200.00. Following the completion of the sale, the chief financial officer owned 288,460 shares in the company, valued at approximately $41,451,702. The trade was a 2.04% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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 98,971 shares of the business’s stock in a transaction dated Monday, September 28th. The shares were sold at an average price of $188.55, for a total transaction of $18,660,982.05. Following the completion of the sale, the insider owned 105,049 shares of the company’s stock, valued at approximately $19,806,988.95. This represents a 48.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 905,594 shares of company stock valued at $161,617,845 over the last three months. 18.64% of the stock is owned by company insiders.

Hedge Funds Weigh In On Workday

A number of hedge funds and other institutional investors have recently modified their holdings of WDAY. DT Investment Partners LLC purchased a new stake in Workday during the fourth quarter worth $27,000. Western Wealth Management LLC bought a new position in shares of Workday in the 1st quarter worth $39,000. Manning & Napier Advisors LLC bought a new position in shares of Workday in the 2nd quarter worth $42,000. Elevation Wealth Partners LLC lifted its stake in shares of Workday by 1,097.0% during the 2nd quarter. Elevation Wealth Partners LLC now owns 395 shares of the software maker’s stock worth $48,000 after purchasing an additional 362 shares during the last quarter. Finally, Reflection Asset Management bought a new stake in Workday during the fourth quarter valued at about $66,000. 89.81% of the stock is currently owned by institutional investors.

Workday Company Profile

Workday, Inc develops cloud-based enterprise software for managing an organization’s people, finances and operations. Its platform is primarily used by businesses, government agencies and educational institutions to support human resources, finance, planning, analytics and related administrative processes.

The company’s offerings include Workday Human Capital Management, Financial Management, Adaptive Planning, Spend Management, payroll, recruiting, talent management, learning and workforce analytics.