Workday (NASDAQ:WDAY) Hits New 12-Month Low – Should You Sell?

Workday, Inc. (NASDAQ:WDAY) shares hit a new 52-week low during mid-day trading on Thursday . The stock traded as low as $169.01 and last traded at $170.9240, with a volume of 3281407 shares trading hands. The stock had previously closed at $189.12.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on WDAY. Morgan Stanley lifted their price objective on shares of Workday from $255.00 to $280.00 and gave the company an “equal weight” rating in a research note on Wednesday, November 26th. Stifel Nicolaus reduced their target price on shares of Workday from $255.00 to $235.00 and set a “hold” rating for the company in a report on Wednesday, November 26th. DA Davidson dropped their price target on Workday from $260.00 to $250.00 and set a “hold” rating on the stock in a report on Wednesday, November 26th. Royal Bank Of Canada decreased their target price on Workday from $320.00 to $300.00 and set an “outperform” rating on the stock in a report on Monday, January 5th. Finally, Raymond James Financial began coverage on Workday in a report on Friday, November 21st. They set a “market perform” rating for the company. Two analysts have rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating and thirteen have issued a Hold rating to the stock. Based on data from MarketBeat, Workday has a consensus rating of “Moderate Buy” and an average price target of $278.09.

Workday Trading Down 9.0%

The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.83 and a current ratio of 1.83. The stock has a market cap of $45.26 billion, a price-to-earnings ratio of 72.40, a price-to-earnings-growth ratio of 2.13 and a beta of 1.14. The company’s 50 day simple moving average is $210.20 and its two-hundred day simple moving average is $224.17.

Workday (NASDAQ:WDAY) last posted its quarterly earnings results on Tuesday, November 25th. The software maker reported $2.32 earnings per share for the quarter, topping analysts’ consensus estimates of $2.17 by $0.15. Workday had a net margin of 6.95% and a return on equity of 10.50%. The business had revenue of $2.43 billion for the quarter, compared to the consensus estimate of $2.42 billion. During the same period in the prior year, the business posted $1.89 earnings per share. Workday’s revenue for the quarter was up 12.6% compared to the same quarter last year. Research analysts expect that Workday, Inc. will post 2.63 EPS for the current fiscal year.

Insider Activity at Workday

In other news, CFO Zane Rowe sold 6,000 shares of the company’s stock in a transaction dated Tuesday, January 6th. The stock was sold at an average price of $208.75, for a total transaction of $1,252,500.00. Following the completion of the sale, the chief financial officer owned 159,158 shares in the company, valued at approximately $33,224,232.50. This represents a 3.63% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Gerrit S. Kazmaier sold 6,547 shares of the firm’s stock in a transaction that occurred on Friday, December 19th. The shares were sold at an average price of $218.77, for a total value of $1,432,287.19. Following the completion of the transaction, the insider directly owned 111,353 shares in the company, valued at $24,360,695.81. The trade was a 5.55% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 370,321 shares of company stock worth $78,866,401 over the last quarter. 20.00% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of WDAY. Verdence Capital Advisors LLC increased its position in shares of Workday by 1.0% during the second quarter. Verdence Capital Advisors LLC now owns 4,381 shares of the software maker’s stock valued at $1,051,000 after purchasing an additional 45 shares during the period. Perennial Investment Advisors LLC lifted its holdings in Workday by 2.8% during the 2nd quarter. Perennial Investment Advisors LLC now owns 1,741 shares of the software maker’s stock valued at $418,000 after purchasing an additional 48 shares during the last quarter. Finivi Inc. boosted its holdings in shares of Workday by 3.3% in the 3rd quarter. Finivi Inc. now owns 1,516 shares of the software maker’s stock worth $365,000 after acquiring an additional 48 shares in the last quarter. Johnson Investment Counsel Inc. grew its holdings in shares of Workday by 2.3% during the second quarter. Johnson Investment Counsel Inc. now owns 2,201 shares of the software maker’s stock worth $528,000 after purchasing an additional 49 shares during the last quarter. Finally, Bay Harbor Wealth Management LLC increased its stake in shares of Workday by 12.0% in the third quarter. Bay Harbor Wealth Management LLC now owns 458 shares of the software maker’s stock valued at $110,000 after buying an additional 49 shares in the last quarter. 89.81% of the stock is currently owned by institutional investors and hedge funds.

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.