Workday (NASDAQ:WDAY) Stock Rating Lowered by Wall Street Zen

Workday (NASDAQ:WDAY) was downgraded by analysts at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a report issued on Saturday.

Several other analysts have also issued reports on WDAY. Royal Bank Of Canada reduced their target price on shares of Workday from $220.00 to $180.00 and set an “outperform” rating for the company in a research note on Wednesday. Needham & Company LLC reiterated a “buy” rating and issued a $300.00 price objective on shares of Workday in a research note on Wednesday, February 25th. Loop Capital set a $280.00 target price on Workday in a research note on Wednesday, December 10th. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $200.00 target price on shares of Workday in a report on Monday, February 23rd. Finally, KeyCorp dropped their price target on Workday from $260.00 to $155.00 and set an “overweight” rating on the stock in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and fifteen have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Workday currently has a consensus rating of “Moderate Buy” and an average target price of $205.19.

Workday Price Performance

Shares of NASDAQ WDAY opened at $133.76 on Friday. The stock has a market cap of $35.18 billion, a price-to-earnings ratio of 51.85, a PEG ratio of 1.31 and a beta of 1.17. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.83 and a current ratio of 1.32. Workday has a fifty-two week low of $117.76 and a fifty-two week high of $276.00. The firm’s 50-day simple moving average is $179.53 and its 200 day simple moving average is $211.79.

Workday (NASDAQ:WDAY) last issued its quarterly earnings data on Tuesday, February 24th. The software maker reported $2.47 EPS for the quarter, topping the consensus estimate of $2.32 by $0.15. The firm had revenue of $2.53 billion during the quarter, compared to the consensus estimate of $2.52 billion. Workday had a return on equity of 13.37% and a net margin of 7.26%.The company’s quarterly revenue was up 14.5% compared to the same quarter last year. During the same period in the prior year, the business posted $1.92 earnings per share. As a group, research analysts anticipate that Workday will post 2.63 earnings per share for the current fiscal year.

Insider Activity at Workday

In other news, insider Robert Enslin sold 22,185 shares of Workday stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $210.17, for a total value of $4,662,621.45. Following the completion of the transaction, the insider owned 106,330 shares in the company, valued at $22,347,376.10. This trade represents a 17.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Carl M. Eschenbach sold 3,125 shares of the business’s stock in a transaction that occurred on Monday, January 5th. The shares were sold at an average price of $210.00, for a total transaction of $656,250.00. Following the completion of the sale, the chief executive officer directly owned 17,097 shares in the company, valued at approximately $3,590,370. This trade represents a 15.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 370,321 shares of company stock worth $78,866,401 in the last three months. Corporate insiders own 20.00% of the company’s stock.

Institutional Investors Weigh In On Workday

Several institutional investors have recently made changes to their positions in WDAY. Rakuten Securities Inc. bought a new stake in shares of Workday during the 2nd quarter valued at $25,000. Measured Wealth Private Client Group LLC purchased a new position in Workday during the 3rd quarter valued at about $26,000. DT Investment Partners LLC bought a new stake in shares of Workday during the fourth quarter valued at about $27,000. LRI Investments LLC purchased a new stake in shares of Workday in the fourth quarter worth about $29,000. Finally, JPL Wealth Management LLC bought a new position in shares of Workday in the third quarter valued at approximately $30,000. Hedge funds and other institutional investors own 89.81% of the company’s stock.

Key Headlines Impacting Workday

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Insperity partnership expands Workday into the SMB market with the general availability of Insperity HRScale, pairing Workday HCM with outsourced HR services — a tangible route to new recurring revenue and smaller-account penetration. Workday And Insperity Target SMB Growth With New HRScale Partnership
• Positive Sentiment: Healthcare integrations: Kahuna and Skillcentrix will bring clinically validated skills data into Workday for frontline healthcare workforces, strengthening industry-specific stickiness and compliance value of the platform. Kahuna and Skillcentrix Partner to Bring Trusted, Clinically Validated Skills Data into Workday
• Positive Sentiment: Bullish coverage and buyback/institutional support arguments note solid Q4 execution (revenue and EPS beat, margin expansion) and argue the pullback presents a long-term buying opportunity. Workday, Seriously, It’s Time to Buy This SaaS Leader
• Neutral Sentiment: Q4 results mixed: revenue and EPS topped expectations and margins improved, but management issued softer near-term guidance (2027), creating uncertainty around growth cadence despite operating leverage. Workday (WDAY) Is Down 9.0% After Softer 2027 Outlook and CEO Shift Back to Co-Founder
• Neutral Sentiment: Analyst reactions are mixed — some firms raised or maintained Buy ratings and raised targets, while many cut price targets after the guidance miss; that spread increases short-term volatility as investors sort the outlook. Workday Given New $206.00 Price Target at The Goldman Sachs Group
• Negative Sentiment: Significant analyst downgrades and price-target cuts (e.g., DA Davidson to $125, Citi cut to $148, UBS to $130 and multiple others) have pressured the stock and triggered a gap down in early trading. Workday price target lowered to $125 from $250 at DA Davidson
• Negative Sentiment: Macro/sector risk: renewed AI-selloff and skepticism about how AI will reshape enterprise software have depressed valuation multiples across SaaS names and increased investor risk aversion for names like Workday. Commentary from high‑profile commentators has added to the negative sentiment. Will AI Kill Software? Fear Creeps Beyond ‘Saaspocalypse,’ Hits IBM, DoorDash
• Negative Sentiment: Market reaction driven by guidance cut and executive leadership change (co‑founder Aneel Bhusri returning as CEO) increased uncertainty and likely accelerated selling pressure. Workday Retreats As Fiscal 2027 Guidance Falls Short Amid CEO’s Return

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.