Workday (NASDAQ:WDAY) Trading Up 4.8% – Should You Buy?
by Mitch Edgeman · The Markets DailyShares of Workday, Inc. (NASDAQ:WDAY – Get Free Report) traded up 4.8% during trading on Tuesday . The stock traded as high as $140.56 and last traded at $140.45. 2,208,777 shares changed hands during mid-day trading, a decline of 57% from the average session volume of 5,171,135 shares. The stock had previously closed at $134.01.
Workday News Roundup
Here are the key news stories impacting Workday this week:
- Positive Sentiment: Jim Cramer praised Workday’s new CEO as “terrific,” a positive media endorsement that can boost investor sentiment and short-term demand for WDAY. Jim Cramer Considers Workday’s New CEO “Terrific”
- Positive Sentiment: Recent sessions saw sharp bargain-hunting after a prior selloff, with Workday rallying ~7% on buying interest — technical/flow-driven upside that can attract momentum and short-covering. Workday (WDAY) Climbs 7.2% on Bargain-Hunting
- Neutral Sentiment: Broader market jitters — stubborn inflation and higher-for-longer rate expectations — remain a headwind for growth/software stocks; this macro backdrop could cap upside even as bargain-hunting drives short-term rallies. US Stock Market Today S&P 500 Futures Edge Lower On Stubborn Inflation Jitters
- Neutral Sentiment: Competition note: Fortune reports French AI startup Pigment approaching $100M ARR and targeting planning/analytics customers — a longer-term competitive development to monitor but not an immediate earnings threat. The French AI startup gunning for Workday, Oracle, and SAP
- Negative Sentiment: Major shareholder David A. Duffield sold 107,500 shares (~$14.45M) and cut his stake by ~50%, a large insider sale that can be read negatively by the market (reduced insider ownership and possible signal of liquidity/positioning). SEC Filing — Duffield Sale
- Negative Sentiment: Earlier commentary from Jim Cramer labeled Workday “an old favorite, but not anymore,” reflecting negative sentiment following February’s sharp pullback — a reminder that some influential voices remain skeptical. Jim Cramer on Workday: “An Old Favorite, But Not Anymore”
Analyst Upgrades and Downgrades
A number of equities analysts have recently issued reports on WDAY shares. Evercore downgraded shares of Workday from an “outperform” rating to an “in-line” rating and set a $160.00 price target for the company. in a report on Wednesday, February 25th. Robert W. Baird set a $195.00 target price on shares of Workday in a report on Tuesday, February 24th. Mizuho decreased their price target on Workday from $275.00 to $210.00 and set an “outperform” rating on the stock in a research note on Wednesday, February 25th. The Goldman Sachs Group lowered their price target on Workday from $238.00 to $206.00 and set a “neutral” rating on the stock in a report on Wednesday, February 25th. Finally, Loop Capital set a $280.00 price objective on Workday in a report on Wednesday, December 10th. Twenty analysts have rated the stock with a Buy rating and fifteen have issued a Hold rating to the company’s stock. According to data from MarketBeat, Workday currently has an average rating of “Moderate Buy” and an average target price of $205.19.
Read Our Latest Stock Analysis on Workday
Workday Trading Down 0.4%
The company has a current ratio of 1.32, a quick ratio of 1.83 and a debt-to-equity ratio of 0.38. The stock has a market capitalization of $37.62 billion, a price-to-earnings ratio of 55.44, a price-to-earnings-growth ratio of 1.41 and a beta of 1.16. The business has a 50 day simple moving average of $174.95 and a 200-day simple moving average of $210.11.
Workday (NASDAQ:WDAY – Get Free Report) last announced its quarterly earnings data on Tuesday, February 24th. The software maker reported $2.47 earnings per share for the quarter, topping the consensus estimate of $2.32 by $0.15. Workday had a net margin of 7.26% and a return on equity of 13.37%. The business had revenue of $2.53 billion for the quarter, compared to analyst estimates of $2.52 billion. During the same period in the prior year, the firm posted $1.92 EPS. The company’s revenue was up 14.5% on a year-over-year basis. On average, equities analysts predict that Workday, Inc. will post 2.63 earnings per share for the current year.
Insider Buying and Selling
In other news, insider Gerrit S. Kazmaier sold 6,547 shares of the business’s stock in a transaction on Friday, December 19th. The shares were sold at an average price of $218.77, for a total transaction of $1,432,287.19. Following the completion of the sale, the insider directly owned 111,353 shares of the company’s stock, valued at $24,360,695.81. The trade was a 5.55% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Carl M. Eschenbach sold 3,125 shares of the stock in a transaction on Monday, January 5th. The stock was sold at an average price of $210.00, for a total value of $656,250.00. Following the completion of the transaction, the chief executive officer directly owned 17,097 shares in the company, valued at $3,590,370. This trade represents a 15.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 395,796 shares of company stock worth $75,909,516 over the last 90 days. Company insiders own 19.31% of the company’s stock.
Institutional Investors Weigh In On Workday
Large investors have recently made changes to their positions in the business. Reflection Asset Management acquired a new position in Workday during the 4th quarter worth approximately $66,000. Anchor Investment Management LLC lifted its position in shares of Workday by 7.3% during the fourth quarter. Anchor Investment Management LLC now owns 8,316 shares of the software maker’s stock worth $1,786,000 after purchasing an additional 563 shares in the last quarter. Pacer Advisors Inc. boosted its stake in shares of Workday by 840.9% in the fourth quarter. Pacer Advisors Inc. now owns 765,049 shares of the software maker’s stock valued at $164,317,000 after purchasing an additional 683,741 shares during the period. Virtu Financial LLC purchased a new position in shares of Workday in the fourth quarter valued at $2,518,000. Finally, Compound Planning Inc. grew its holdings in Workday by 32.8% during the 4th quarter. Compound Planning Inc. now owns 2,818 shares of the software maker’s stock valued at $605,000 after purchasing an additional 696 shares in the last quarter. Institutional investors and hedge funds 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.