Workday (NASDAQ:WDAY) Reaches New 1-Year Low – Should You Sell?

Shares of Workday, Inc. (NASDAQ:WDAY) hit a new 52-week low on Monday . The company traded as low as $135.00 and last traded at $131.1160, with a volume of 19087 shares. The stock had previously closed at $137.81.

Analysts Set New Price Targets

Several equities research analysts have commented on the stock. UBS Group decreased their target price on shares of Workday from $240.00 to $170.00 and set a “neutral” rating on the stock in a research report on Tuesday, February 10th. The Goldman Sachs Group began coverage on shares of Workday in a research note on Monday, January 12th. They issued a “neutral” rating and a $238.00 price objective for the company. Oppenheimer lowered their target price on shares of Workday from $270.00 to $200.00 and set an “outperform” rating on the stock in a research report on Tuesday, February 17th. Loop Capital set a $280.00 price target on shares of Workday in a research report on Wednesday, December 10th. Finally, Jefferies Financial Group cut Workday from a “buy” rating to a “hold” rating and lowered their price target for the stock from $325.00 to $150.00 in a report on Monday. One research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and thirteen have issued a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $243.00.

Workday Price Performance

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 company has a 50-day moving average of $187.89 and a 200-day moving average of $214.81. The stock has a market capitalization of $33.42 billion, a price-to-earnings ratio of 53.45, a P/E/G ratio of 1.18 and a beta of 1.14.

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

Insider Transactions at Workday

In other Workday news, insider Gerrit S. Kazmaier sold 6,547 shares of the company’s stock in a transaction dated 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 transaction, the insider directly owned 111,353 shares in the company, valued at approximately $24,360,695.81. This represents a 5.55% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, major shareholder David A. Duffield sold 82,884 shares of Workday stock in a transaction dated Thursday, January 8th. The stock was sold at an average price of $209.75, for a total transaction of $17,384,919.00. Following the sale, the insider owned 105,049 shares of the company’s stock, valued at approximately $22,034,027.75. This trade represents a 44.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 370,321 shares of company stock worth $78,866,401 in the last ninety days. Company insiders own 20.00% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Rakuten Securities Inc. purchased a new stake in shares of Workday in the second quarter valued at $25,000. Measured Wealth Private Client Group LLC acquired a new stake in Workday in the 3rd quarter worth about $26,000. DT Investment Partners LLC acquired a new stake in Workday in the 4th quarter worth about $27,000. LRI Investments LLC purchased a new stake in Workday in the 4th quarter valued at about $29,000. Finally, JPL Wealth Management LLC acquired a new position in shares of Workday during the 3rd quarter valued at about $30,000. 89.81% of the stock is currently owned by institutional investors and hedge funds.

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.