Workday (NASDAQ:WDAY) Price Target Raised to $225.00

Workday (NASDAQ:WDAY) had its price target increased by Canaccord Genuity Group from $200.00 to $225.00 in a report issued on Tuesday, MarketBeat Ratings reports. The firm currently has a buy rating on the software maker’s stock.

Other analysts also recently issued research reports about the company. Robert W. Baird upped their price target on Workday from $190.00 to $215.00 and gave the stock an “outperform” rating in a research note on Friday, August 14th. Oppenheimer raised their price objective on Workday from $165.00 to $220.00 and gave the company an “outperform” rating in a research note on Monday. KeyCorp restated an “overweight” rating on shares of Workday in a report on Friday, August 14th. Barclays restated an “overweight” rating on shares of Workday in a report on Wednesday, August 19th. Finally, CLSA assumed coverage on Workday in a report on Monday, July 20th. They set an “underperform” rating and a $92.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, fifteen have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $189.86.

Workday Stock Up 1.5%

WDAY stock opened at $193.57 on Tuesday. The firm has a market cap of $47.81 billion, a PE ratio of 60.49, a PEG ratio of 2.03 and a beta of 1.08. Workday has a 1 year low of $110.36 and a 1 year high of $249.85. The company has a fifty day simple moving average of $155.95 and a 200 day simple moving average of $140.36. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 0.30.

Workday (NASDAQ:WDAY) last posted its 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. Workday had a net margin of 8.60% and a return on equity of 14.75%. The firm had revenue of $2.65 billion for the quarter, compared to the consensus estimate of $2.64 billion. During the same period in the prior year, the business posted $2.21 earnings per share. The business’s quarterly revenue was up 12.8% on a year-over-year basis. Sell-side analysts anticipate that Workday will post 5.38 EPS for the current fiscal year.

Insider Transactions at Workday

In other Workday news, major shareholder David A. Duffield sold 107,500 shares of the business’s stock in a transaction on Thursday, July 9th. The shares were sold at an average price of $136.74, for a total value of $14,699,550.00. Following the sale, the insider owned 105,049 shares of the company’s stock, valued at $14,364,400.26. The trade was a 50.58% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Gerrit S. Kazmaier sold 2,728 shares of the stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $143.62, for a total transaction of $391,795.36. Following the completion of the transaction, the insider owned 266,388 shares of the company’s stock, valued at approximately $38,258,644.56. This represents a 1.01% decrease in their position. The SEC filing for this sale provides additional information. 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. Over the last three months, insiders have sold 875,020 shares of company stock worth $113,938,503. 18.64% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Workday

Several large investors have recently modified their holdings of WDAY. California State Teachers Retirement System lifted its position in shares of Workday by 11,770.8% during the 2nd quarter. California State Teachers Retirement System now owns 36,907,426 shares of the software maker’s stock worth $4,518,207,000 after buying an additional 36,596,516 shares during the period. Auto Owners Insurance Co lifted its holdings in shares of Workday by 25,412.8% during the fourth 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 period. Vanguard Group Inc. lifted its holdings in shares of Workday by 14.7% during the fourth quarter. Vanguard Group Inc. now owns 25,009,288 shares of the software maker’s stock valued at $5,371,495,000 after acquiring an additional 3,210,232 shares during the period. Janus Henderson Group PLC boosted its stake in shares of Workday by 101.4% in the 4th quarter. Janus Henderson Group PLC now owns 5,017,905 shares of the software maker’s stock valued at $1,077,537,000 after purchasing an additional 2,525,821 shares in the last quarter. Finally, Norges Bank bought a new stake in shares of Workday in the 4th quarter worth about $448,804,000. 89.81% of the stock is currently owned by institutional investors.

Key Headlines Impacting Workday

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Workday reported quarterly earnings of $2.75 per share, above the $2.61-$2.62 consensus estimate and up from $2.21 a year earlier. Revenue reached $2.649 billion, a 12.8% year-over-year increase and slightly ahead of expectations. Workday Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Profitability was a major bright spot: fiscal second-quarter net income rose to $632 million from $228 million a year earlier, while operating profit increased 26.2% to $313 million. Subscription revenue grew 13.9% to $2.471 billion. Workday Reports Higher Profit and Revenue
• Positive Sentiment: Management said AI-related offerings now account for approximately 25% of new contract value, suggesting growing customer adoption and a potential long-term growth catalyst. The board also authorized a substantial $4 billion share-buyback program, which could support earnings per share and shareholder returns. Workday Q2 2027 AI Adoption
• Neutral Sentiment: Analyst reaction is mixed. Canaccord Genuity raised its price target to $225, but several targets cited by Quiver Quantitative were below the current trading level, indicating valuation remains a concern after the stock’s recent rebound.
• Negative Sentiment: Forward guidance disappointed relative to consensus: fiscal 2027 revenue guidance of $9.9 billion-$10.0 billion was below the $10.7 billion analyst estimate, while third-quarter guidance of about $2.5 billion trailed expectations near $2.7 billion. This outlook helps explain why shares initially slipped despite the earnings beat. Workday Outlook Meets Estimates
• Negative Sentiment: Reported operating cash flow declined 15.8% year over year to $519 million. Separately, Quiver Quantitative reported continued insider selling, including substantial sales attributed to company founder David Duffield, which may weigh on investor sentiment.

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.