Workday (NASDAQ:WDAY) Earns “Hold” Rating from Freedom Broker

Workday (NASDAQ:WDAY)‘s stock had its “hold” rating reiterated by stock analysts at Freedom Broker in a research note issued on Friday,Benzinga reports. They presently have a $200.00 price target on the software maker’s stock, up from their prior price target of $180.00. Freedom Broker’s price objective indicates a potential downside of 2.01% from the stock’s current price.

Other research analysts have also issued reports about the company. TD Cowen lowered their price target on Workday from $220.00 to $210.00 and set a “hold” rating for the company in a research report on Friday. Monness Crespi & Hardt boosted their price objective on Workday from $202.00 to $218.00 and gave the company a “buy” rating in a report on Friday. Robert W. Baird increased their target price on Workday from $190.00 to $215.00 and gave the stock an “outperform” rating in a research note on Friday, August 14th. Citigroup raised their target price on Workday from $139.00 to $201.00 and gave the company a “neutral” rating in a report on Friday. Finally, Wall Street Zen downgraded Workday from a “buy” rating to a “hold” rating in a research report on Saturday, August 8th. Twenty equities research analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, Workday currently has a consensus rating of “Hold” and an average price target of $206.00.

Workday Trading Up 5.4%

Shares of WDAY stock traded up $10.54 during trading hours on Friday, hitting $204.11. The company had a trading volume of 6,569,100 shares, compared to its average volume of 5,099,931. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.01 and a quick ratio of 1.01. The stock has a market capitalization of $50.42 billion, a PE ratio of 63.78, a price-to-earnings-growth ratio of 2.03 and a beta of 1.08. The company’s fifty day moving average is $155.95 and its 200 day moving average is $140.36. Workday has a fifty-two week low of $110.36 and a fifty-two week high of $249.85.

Workday (NASDAQ:WDAY) last posted its earnings results on Thursday, August 27th. The software maker reported $2.75 earnings per share for the quarter, beating the consensus estimate of $2.61 by $0.14. The firm had revenue of $2.65 billion during the quarter, compared to the consensus estimate of $2.64 billion. Workday had a net margin of 8.60% and a return on equity of 14.75%. The firm’s revenue for the quarter was up 12.8% on a year-over-year basis. During the same quarter last year, the firm earned $2.21 EPS. Research analysts expect that Workday will post 5.38 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Workday news, major shareholder David A. Duffield sold 107,500 shares of the company’s stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $122.04, for a total transaction of $13,119,300.00. Following the sale, the insider owned 105,049 shares in the company, valued at $12,820,179.96. This represents a 50.58% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Zane Rowe sold 6,000 shares of the stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $143.70, for a total value of $862,200.00. Following the completion of the sale, the chief financial officer directly owned 288,460 shares in the company, valued at $41,451,702. This represents a 2.04% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. Insiders sold 875,020 shares of company stock valued at $113,938,503 in the last three months. 18.64% of the stock is owned by corporate insiders.

Institutional Trading of Workday

Several hedge funds have recently added to or reduced their stakes in the company. California State Teachers Retirement System lifted its stake in Workday by 11,770.8% in the second quarter. California State Teachers Retirement System now owns 36,907,426 shares of the software maker’s stock worth $4,518,207,000 after acquiring an additional 36,596,516 shares during the last quarter. Paralel Advisors LLC purchased a new stake in shares of Workday in the 2nd quarter valued at approximately $2,178,000. Wedmont Private Capital increased its position in shares of Workday by 25.9% in the 2nd quarter. Wedmont Private Capital now owns 2,751 shares of the software maker’s stock valued at $337,000 after purchasing an additional 566 shares during the last quarter. Kintra Wealth LLC acquired a new stake in shares of Workday in the 2nd quarter valued at $499,000. Finally, Figure 8 Investment Strategies LLC raised its holdings in shares of Workday by 84.2% in the 2nd quarter. Figure 8 Investment Strategies LLC now owns 6,571 shares of the software maker’s stock valued at $804,000 after purchasing an additional 3,003 shares in the last quarter. Institutional investors and hedge funds own 89.81% of the company’s stock.

Workday News Roundup

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Workday reported adjusted earnings of $2.75 per share, above the $2.61 analyst consensus, while revenue reached $2.649 billion, slightly exceeding estimates. Total revenue increased 12.8% year over year, and subscription revenue rose 13.9% to $2.471 billion. Workday fiscal 2027 second-quarter results
• Positive Sentiment: AI products accounted for more than one-quarter of new contract value during the quarter, signaling growing demand for Workday’s AI agents and supporting the view that AI adoption can accelerate subscription growth. AI products and new contract value
• Positive Sentiment: Management raised its full-year subscription revenue outlook and increased its margin expectations, while authorizing a $4 billion share-repurchase program. Analysts highlighted stronger profitability, subscription growth and AI momentum; Monness raised its price target to $218 with a Buy rating, while BMO, Needham and KeyCorp also increased targets. Monness price target increase
• Neutral Sentiment: Jim Cramer said the results do not indicate a broad SaaS-sector meltdown, reinforcing investor confidence in enterprise software demand. Jim Cramer on Workday results
• Negative Sentiment: Workday’s fiscal 2027 total revenue outlook of approximately $9.9 billion to $10.0 billion was below the roughly $10.7 billion consensus estimate. The reduced outlook raised concerns about slower growth and the possibility of another guidance reduction, leading TD Cowen, Cantor Fitzgerald, Piper Sandler and DA Davidson to maintain cautious ratings or lower targets.

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.