Workday (NASDAQ:WDAY) Shares Gap Down – Should You Sell?

Shares of Workday, Inc. (NASDAQ:WDAY) gapped down before the market opened on Monday . The stock had previously closed at $144.78, but opened at $140.48. Workday shares last traded at $143.1320, with a volume of 376,712 shares.

Analysts Set New Price Targets

WDAY has been the topic of a number of research analyst reports. Cantor Fitzgerald reiterated an “overweight” rating on shares of Workday in a report on Wednesday, June 17th. Summit Redstone set a $275.00 price target on Workday in a research note on Wednesday, May 27th. Weiss Ratings restated a “sell (d+)” rating on shares of Workday in a report on Wednesday, June 17th. BMO Capital Markets reaffirmed an “outperform” rating on shares of Workday in a research note on Friday, May 22nd. Finally, Monness Crespi & Hardt upgraded Workday from a “neutral” rating to a “buy” rating and set a $150.00 target price for the company in a report on Thursday, June 25th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, fourteen have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $181.37.

Workday Trading Up 1.1%

The firm has a fifty day moving average of $131.46 and a 200-day moving average of $144.02. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.01 and a current ratio of 1.01. The stock has a market capitalization of $36.17 billion, a price-to-earnings ratio of 45.73, a P/E/G ratio of 1.55 and a beta of 1.11.

Workday (NASDAQ:WDAY) last issued its quarterly earnings data on Thursday, May 21st. The software maker reported $2.66 EPS for the quarter, topping analysts’ consensus estimates of $2.51 by $0.15. The company had revenue of $2.54 billion for the quarter, compared to analysts’ expectations of $2.52 billion. Workday had a return on equity of 14.75% and a net margin of 8.60%.The firm’s quarterly revenue was up 13.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.23 earnings per share. As a group, equities analysts predict that Workday, Inc. will post 5.34 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Robert Enslin sold 5,374 shares of Workday stock in a transaction on Sunday, July 5th. The shares were sold at an average price of $134.90, for a total transaction of $724,952.60. Following the sale, the insider owned 239,469 shares of the company’s stock, valued at $32,304,368.10. The trade was a 2.19% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 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 the company’s stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $122.04, for a total transaction of $13,119,300.00. Following the completion of the transaction, the insider directly owned 105,049 shares of the company’s stock, valued at approximately $12,820,179.96. The trade was a 50.58% decrease in their ownership of the stock. 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 875,020 shares of company stock worth $113,938,503 in the last 90 days. 18.64% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of WDAY. Vanguard Group Inc. boosted its stake in shares of Workday by 14.7% during the 4th quarter. Vanguard Group Inc. now owns 25,009,288 shares of the software maker’s stock valued at $5,371,495,000 after buying an additional 3,210,232 shares during the last quarter. Auto Owners Insurance Co boosted its stake in Workday by 25,412.8% during the 4th quarter. Auto Owners Insurance Co now owns 10,230,616 shares of the software maker’s stock valued at $2,197,332,000 after acquiring an additional 10,190,516 shares during the last quarter. State Street Corp grew its holdings in Workday by 1.0% during the 4th quarter. State Street Corp now owns 9,770,707 shares of the software maker’s stock worth $2,098,552,000 after acquiring an additional 96,139 shares in the last quarter. Hotchkis & Wiley Capital Management LLC increased its position in shares of Workday by 47.5% in the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 5,842,491 shares of the software maker’s stock worth $1,406,463,000 after purchasing an additional 1,882,391 shares during the last quarter. Finally, Geode Capital Management LLC increased its position in shares of Workday by 1.5% in the 4th quarter. Geode Capital Management LLC now owns 5,091,926 shares of the software maker’s stock worth $1,089,970,000 after purchasing an additional 75,922 shares during the last quarter. Hedge funds and other institutional investors own 89.81% of the company’s stock.

Workday Company Profile

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.