Workday (NASDAQ:WDAY) Price Target Raised to $190.00 at DA Davidson

Workday (NASDAQ:WDAY) had its target price boosted by DA Davidson from $135.00 to $190.00 in a research note issued on Friday,Benzinga reports. The brokerage presently has a “neutral” rating on the software maker’s stock. DA Davidson’s price target points to a potential downside of 2.85% from the stock’s previous close.

A number of other equities analysts also recently issued reports on WDAY. Wolfe Research reiterated an “outperform” rating and issued a $160.00 price objective on shares of Workday in a report on Friday, May 22nd. Weiss Ratings upgraded shares of Workday from a “sell (d+)” rating to a “hold (c-)” rating in a report on Thursday, August 13th. Morgan Stanley upped their target price on shares of Workday from $145.00 to $180.00 and gave the stock an “underweight” rating in a research report on Friday. Sanford C. Bernstein increased their price target on shares of Workday from $216.00 to $238.00 and gave the stock an “outperform” rating in a research note on Friday. Finally, Bank of America lifted their price target on shares of Workday from $140.00 to $205.00 and gave the company a “neutral” rating in a research report on Wednesday, August 19th. Twenty research analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $201.51.

Workday Stock Up 1.0%

Shares of WDAY stock traded up $2.01 during midday trading on Friday, reaching $195.58. 874,774 shares of the stock were exchanged, compared to its average volume of 5,065,768. Workday has a 1 year low of $110.36 and a 1 year high of $249.85. The firm has a market cap of $48.31 billion, a PE ratio of 61.12, a price-to-earnings-growth ratio of 2.03 and a beta of 1.08. The company’s 50 day moving average is $155.95 and its two-hundred day moving average is $140.36. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 0.30.

Workday (NASDAQ:WDAY) last released its earnings results on Thursday, August 27th. The software maker reported $2.75 EPS for the quarter, beating analysts’ consensus estimates of $2.61 by $0.14. Workday had a return on equity of 14.75% and a net margin of 8.60%.The company had revenue of $2.65 billion during the quarter, compared to analysts’ expectations of $2.64 billion. During the same quarter last year, the business posted $2.21 EPS. The firm’s revenue for the quarter was up 12.8% compared to the same quarter last year. On average, equities research analysts predict that Workday will post 5.38 EPS for the current year.

Insiders Place Their Bets

In other news, CFO Zane Rowe sold 6,000 shares of Workday stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $143.70, for a total value of $862,200.00. Following the completion of the transaction, the chief financial officer owned 288,460 shares of the company’s stock, valued at $41,451,702. The trade was a 2.04% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through 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, major shareholder David A. Duffield sold 107,500 shares of Workday stock in a transaction dated Thursday, July 9th. The stock was sold at an average price of $136.74, for a total value of $14,699,550.00. Following the completion of the transaction, the insider directly owned 105,049 shares of the company’s stock, valued at approximately $14,364,400.26. This represents a 50.58% decrease in their position. 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. In the last ninety days, insiders sold 875,020 shares of company stock valued at $113,938,503. Company insiders own 18.64% of the company’s stock.

Institutional Trading of Workday

Institutional investors have recently bought and sold shares of the company. California State Teachers Retirement System increased its stake in Workday by 11,770.8% during the 2nd quarter. California State Teachers Retirement System now owns 36,907,426 shares of the software maker’s stock valued at $4,518,207,000 after purchasing an additional 36,596,516 shares in the last quarter. Auto Owners Insurance Co grew its holdings in shares of Workday by 25,412.8% during the fourth quarter. Auto Owners Insurance Co now owns 10,230,616 shares of the software maker’s stock valued at $2,197,332,000 after buying an additional 10,190,516 shares during the last quarter. State Street Corp grew its holdings in shares of Workday by 1.0% during the fourth quarter. State Street Corp now owns 9,770,707 shares of the software maker’s stock valued at $2,098,552,000 after buying an additional 96,139 shares during the last quarter. Hotchkis & Wiley Capital Management LLC increased its position in shares of Workday by 47.5% during the third quarter. Hotchkis & Wiley Capital Management LLC now owns 5,842,491 shares of the software maker’s stock valued at $1,406,463,000 after acquiring an additional 1,882,391 shares in the last quarter. Finally, Geode Capital Management LLC raised its holdings in Workday by 1.5% in the 4th quarter. Geode Capital Management LLC now owns 5,091,926 shares of the software maker’s stock worth $1,089,970,000 after acquiring an additional 75,922 shares during the last quarter. 89.81% of the stock is owned by hedge funds and other institutional investors.

Workday News Roundup

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Workday reported fiscal Q2 revenue of $2.649 billion, up 12.8% year over year and slightly above estimates, while adjusted EPS of $2.75 exceeded the $2.61 consensus. Net income increased to $632 million from $228 million a year earlier. Workday fiscal 2027 second-quarter results
• Positive Sentiment: Subscription revenue rose 13.9% to $2.471 billion, and the company said AI-related offerings accounted for more than 25% of new contract value, supporting the narrative that AI adoption is accelerating demand. Workday earnings call highlights
• Positive Sentiment: Workday’s board authorized a $4 billion share-repurchase program, which could support earnings per share and signal confidence in the company’s long-term value. Workday expands share buybacks
• Positive Sentiment: Several firms raised their targets following the results: BMO and Needham moved to $230, Canaccord to $225, KeyCorp to $215, and Monness Crespi & Hardt to $218. The firms maintain positive ratings, including outperform, overweight or buy.
• Neutral Sentiment: Workday’s longer-term outlook calls for approximately 11% subscription-revenue growth in fiscal 2028 and at least two percentage points of non-GAAP margin expansion, indicating continued growth but a slower pace than recent results. Workday fiscal 2028 outlook
• Negative Sentiment: Management’s fiscal 2027 revenue outlook of $9.9 billion to $10.0 billion and third-quarter outlook of about $2.5 billion are below consensus estimates of $10.7 billion and $2.7 billion, respectively. This raised concerns about slowing growth and the possibility of another “guide down.” Reuters Workday outlook report
• Negative Sentiment: Analyst sentiment remains mixed: Cantor Fitzgerald cut its target to $205, while Piper Sandler raised its target only to $190 and retained a neutral rating—below the referenced $193.57 share price.

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.