Guggenheim Has Lowered Expectations for Workday (NASDAQ:WDAY) Stock Price

Workday (NASDAQ:WDAY) had its price objective reduced by research analysts at Guggenheim from $285.00 to $275.00 in a note issued to investors on Wednesday,Benzinga reports. The firm presently has a “buy” rating on the software maker’s stock. Guggenheim’s price target indicates a potential upside of 114.21% from the stock’s current price.

Several other research firms have also recently weighed in on WDAY. Morgan Stanley cut their target price on Workday from $280.00 to $200.00 and set an “equal weight” rating for the company in a research note on Monday. Robert W. Baird set a $195.00 price objective on Workday in a research note on Tuesday. Zacks Research downgraded Workday from a “strong-buy” rating to a “hold” rating in a research note on Thursday, October 30th. Needham & Company LLC restated a “buy” rating and issued a $300.00 price target on shares of Workday in a research note on Wednesday. Finally, Royal Bank Of Canada lowered their price objective on shares of Workday from $320.00 to $300.00 and set an “outperform” rating for the company in a research report on Monday, January 5th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and sixteen have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $226.28.

Workday Price Performance

NASDAQ WDAY traded down $1.85 during midday trading on Wednesday, hitting $128.38. The company had a trading volume of 7,085,612 shares, compared to its average volume of 4,555,727. The company has a market capitalization of $33.76 billion, a PE ratio of 54.39, a P/E/G ratio of 1.11 and a beta of 1.13. Workday has a twelve month low of $117.76 and a twelve month high of $281.00. The company has a current ratio of 1.83, a quick ratio of 1.83 and a debt-to-equity ratio of 0.34. The firm has a 50-day moving average price of $184.46 and a 200-day moving average price of $213.51.

Workday (NASDAQ:WDAY) last posted its quarterly earnings results on Tuesday, February 24th. The software maker reported $2.47 EPS for the quarter, beating analysts’ consensus estimates of $2.32 by $0.15. Workday had a return on equity of 10.50% and a net margin of 6.95%.The business had revenue of $2.53 billion during the quarter, compared to the consensus estimate of $2.52 billion. During the same quarter in the previous year, the firm earned $1.92 earnings per share. Workday’s revenue for the quarter was up 14.5% compared to the same quarter last year. As a group, analysts anticipate that Workday will post 2.63 earnings per share for the current fiscal year.

Insider Transactions at Workday

In other news, insider Gerrit S. Kazmaier sold 3,759 shares of the stock in a transaction dated Tuesday, January 6th. The stock was sold at an average price of $208.73, for a total value of $784,616.07. Following the completion of the sale, the insider owned 105,167 shares of the company’s stock, valued at approximately $21,951,507.91. This represents a 3.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CAO Mark S. Garfield sold 953 shares of Workday stock in a transaction that occurred on Thursday, January 8th. The stock was sold at an average price of $209.56, for a total value of $199,710.68. Following the completion of the transaction, the chief accounting officer directly owned 35,336 shares in the company, valued at approximately $7,405,012.16. This represents a 2.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 370,321 shares of company stock worth $78,866,401. 20.00% of the stock is currently owned by insiders.

Institutional Trading of Workday

Institutional investors have recently bought and sold shares of the company. AlphaQuest LLC boosted its position in shares of Workday by 636.7% in the second quarter. AlphaQuest LLC now owns 1,886 shares of the software maker’s stock valued at $453,000 after acquiring an additional 1,630 shares during the period. PKO Investment Management Joint Stock Co bought a new position in shares of Workday in the third quarter worth $1,805,000. Phoenix Financial Ltd. bought a new stake in Workday during the third quarter valued at $2,000,000. Rakuten Investment Management Inc. bought a new position in Workday in the 3rd quarter worth about $124,718,000. Finally, Norges Bank bought a new stake in shares of Workday during the 2nd quarter valued at about $442,702,000. Institutional investors own 89.81% of the company’s stock.

Workday News Summary

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Q4 results beat expectations: revenue and non‑GAAP EPS topped estimates, subscription revenue grew ~15.7% YoY and margins improved, showing operating leverage that supports longer‑term profitability. Workday Q4 results press release
• Positive Sentiment: Management emphasizes AI as a growth catalyst and is increasing AI investments — supporting the company’s long‑term TAM and product differentiation despite near‑term cost pressure. CEO emphasizes AI growth opportunity
• Positive Sentiment: Some analysts remain bullish: Needham reaffirmed a Buy with a $300 target and other shops still rate WDAY as an outperform opportunity, providing counter‑balance to downgrades. Analyst notes (Benzinga)
• Neutral Sentiment: Broad market context — Nasdaq futures and a positive pre‑open market helped stabilize software names today, which may be supporting a bounce in WDAY despite company‑specific headwinds. Market futures ahead of open
• Negative Sentiment: Weak FY27 subscription revenue guidance: Workday forecast subscription growth below Street estimates (guidance ~12–13%), signaling slower new client wins as customers moderate tech spend — the primary driver of the post‑earnings selloff. Reuters: forecasts below estimates
• Negative Sentiment: AI disruption fears and margin/cost concerns: Investors are worried that AI both threatens parts of the software model and forces heavy near‑term investment; commentary and headlines point to the “cost of competing in AI” denting near‑term margins. MarketWatch: cost of competing in AI
• Negative Sentiment: Leadership change and uncertainty: Co‑founder Aneel Bhusri is returning as CEO, adding transition risk that some investors see as a near‑term overhang on execution and sentiment. Yahoo: founder returns as CEO
• Negative Sentiment: Analyst cuts and downgrades: Several firms trimmed price targets or downgraded ratings after the cautious outlook (multiple reports summarize cuts and rating changes), which amplifies selling pressure and headline risk. Benzinga: analysts slash forecasts

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.