Workday (NASDAQ:WDAY) Trading Up 19.4% – Still a Buy?

Workday, Inc. (NASDAQ:WDAY)’s share price traded up 19.4% during mid-day trading on Thursday . The company traded as high as $227.49 and last traded at $209.3430. Approximately 5,655,865 shares traded hands during mid-day trading, an increase of 13% from the average daily volume of 5,025,424 shares. The stock had previously closed at $175.29.

More Workday News

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Reports of a possible Silver Lake takeover suggest investors may receive a premium to Workday’s unaffected market price. The stock’s rapid advance triggered multiple Nasdaq Limit Up-Limit Down trading pauses. Silver Lake in talks to buy Workday, sources say
• Positive Sentiment: CNBC reported that Workday surged before trading was halted, reinforcing that takeover speculation—not routine operating news—is the primary catalyst behind the move. Workday skyrockets before trading halted on report of Silver Lake takeover
• Neutral Sentiment: The acquisition discussions remain unconfirmed, and there is no indication that Silver Lake and Workday have reached a definitive agreement. Investors should expect elevated volatility as the market assesses the potential deal terms and financing.
• Neutral Sentiment: Recent commentary ahead of Workday’s quarterly results pointed to improving business momentum but emphasized the need for effective execution. Brokerages recently set an average price target near $179.80, which is less relevant if takeover negotiations progress but could weigh on the shares if discussions fail.

Analyst Upgrades and Downgrades

A number of brokerages have commented on WDAY. Citigroup reissued a “market perform” rating on shares of Workday in a research report on Friday, May 22nd. Wells Fargo & Company increased their target price on Workday from $185.00 to $215.00 and gave the company an “overweight” rating in a report on Wednesday. Piper Sandler raised their price target on Workday from $135.00 to $145.00 and gave the company a “neutral” rating in a research note on Friday, May 22nd. Wolfe Research reaffirmed an “outperform” rating and set a $160.00 price target on shares of Workday in a report on Friday, May 22nd. Finally, Barclays upgraded Workday from an “overweight” rating to a “buy” rating in a report on Friday, May 22nd. One analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, thirteen have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, Workday presently has an average rating of “Moderate Buy” and a consensus target price of $182.14.

Workday Stock Performance

The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.30. The firm has a 50-day simple moving average of $142.14 and a 200 day simple moving average of $138.76. The company has a market cap of $50.95 billion, a price-to-earnings ratio of 64.67, a price-to-earnings-growth ratio of 1.93 and a beta of 1.08.

Workday (NASDAQ:WDAY) last posted its quarterly earnings data on Thursday, May 21st. The software maker reported $2.66 earnings per share for the quarter, beating the consensus estimate of $2.51 by $0.15. The business had revenue of $2.54 billion during the quarter, compared to the consensus estimate of $2.52 billion. Workday had a return on equity of 14.75% and a net margin of 8.60%.The company’s revenue was up 13.5% compared to the same quarter last year. During the same period in the prior year, the company earned $2.23 earnings per share. On average, sell-side analysts predict that Workday, Inc. will post 5.38 earnings per share for the current fiscal year.

Insider Activity

In other Workday news, CFO Zane Rowe sold 6,000 shares of the firm’s stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $143.70, for a total transaction of $862,200.00. Following the transaction, the chief financial officer directly owned 288,460 shares of the company’s stock, valued at approximately $41,451,702. This trade represents a 2.04% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 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. Also, insider Robert Enslin sold 5,374 shares of Workday stock in a transaction on Sunday, July 5th. The shares were sold at an average price of $134.90, for a total transaction of $724,952.60. Following the completion of the transaction, the insider owned 239,469 shares in the company, valued at approximately $32,304,368.10. This represents a 2.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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 have sold 875,020 shares of company stock worth $113,938,503 over the last 90 days. 18.64% of the stock is owned by corporate insiders.

Institutional Trading of Workday

Several institutional investors and hedge funds have recently added to or reduced their stakes in WDAY. Strategic Investment Advisors MI increased its stake in Workday by 1.6% during the second quarter. Strategic Investment Advisors MI now owns 3,263 shares of the software maker’s stock valued at $777,000 after purchasing an additional 50 shares during the last quarter. L2 Asset Management LLC lifted its position in shares of Workday by 7.8% in the 4th quarter. L2 Asset Management LLC now owns 1,079 shares of the software maker’s stock worth $232,000 after buying an additional 78 shares during the last quarter. Oregon Public Employees Retirement Fund grew its position in shares of Workday by 0.3% during the 4th quarter. Oregon Public Employees Retirement Fund now owns 24,798 shares of the software maker’s stock valued at $5,326,000 after buying an additional 80 shares during the last quarter. Stevens Capital Management LP raised its stake in Workday by 4.3% during the fourth quarter. Stevens Capital Management LP now owns 2,054 shares of the software maker’s stock worth $441,000 after acquiring an additional 84 shares during the period. Finally, Colonial Trust Co SC lifted its holdings in Workday by 45.8% in the fourth quarter. Colonial Trust Co SC now owns 280 shares of the software maker’s stock worth $60,000 after acquiring an additional 88 shares during the last quarter. 89.81% of the stock is owned by hedge funds and other institutional investors.

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.