Workday (NASDAQ:WDAY) Shares Gap Down on Analyst Downgrade

Workday, Inc. (NASDAQ:WDAY) gapped down before the market opened on Friday after Oppenheimer lowered their price target on the stock from $320.00 to $300.00. The stock had previously closed at $272.07, but opened at $241.60. Oppenheimer currently has an outperform rating on the stock. Workday shares last traded at $241.68, with a volume of 3,400,500 shares trading hands.

Several other research firms have also recently weighed in on WDAY. JPMorgan Chase & Co. cut their price target on Workday from $310.00 to $295.00 and set an “overweight” rating for the company in a report on Friday. Loop Capital dropped their target price on Workday from $285.00 to $250.00 and set a “hold” rating for the company in a report on Friday. JMP Securities reiterated a “market outperform” rating and issued a $315.00 target price on shares of Workday in a report on Friday. UBS Group lifted their target price on Workday from $255.00 to $285.00 and gave the stock a “neutral” rating in a report on Wednesday, February 26th. Finally, Daiwa America upgraded Workday to a “strong-buy” rating in a report on Tuesday, March 4th. Nine analysts have rated the stock with a hold rating, twenty-one have issued a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat, Workday has an average rating of “Moderate Buy” and an average price target of $292.69.

Insider Activity

In related news, insider Sayan Chakraborty sold 6,056 shares of the business’s stock in a transaction on Thursday, February 27th. The stock was sold at an average price of $265.50, for a total transaction of $1,607,868.00. Following the transaction, the insider now directly owns 111,324 shares in the company, valued at $29,556,522. The trade was a 5.16% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CAO Mark S. Garfield sold 497 shares of the business’s stock in a transaction on Thursday, April 10th. The stock was sold at an average price of $226.55, for a total value of $112,595.35. Following the transaction, the chief accounting officer now owns 34,385 shares in the company, valued at approximately $7,789,921.75. This trade represents a 1.42% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 321,724 shares of company stock worth $77,976,126. 19.31% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Crews Bank & Trust purchased a new stake in Workday during the 4th quarter valued at about $26,000. Roxbury Financial LLC purchased a new stake in Workday during the 4th quarter valued at about $25,000. Avion Wealth grew its stake in Workday by 452.6% during the 4th quarter. Avion Wealth now owns 105 shares of the software maker’s stock valued at $27,000 after purchasing an additional 86 shares during the last quarter. Cornerstone Planning Group LLC grew its stake in Workday by 76.1% during the 1st quarter. Cornerstone Planning Group LLC now owns 125 shares of the software maker’s stock valued at $28,000 after purchasing an additional 54 shares during the last quarter. Finally, Dagco Inc. purchased a new stake in Workday during the 1st quarter valued at about $31,000. 89.81% of the stock is currently owned by hedge funds and other institutional investors.

Workday Trading Down 12.5%

The company has a debt-to-equity ratio of 0.35, a quick ratio of 2.05 and a current ratio of 2.05. The company has a 50 day simple moving average of $242.57 and a two-hundred day simple moving average of $254.20. The firm has a market cap of $63.31 billion, a PE ratio of 39.47, a P/E/G ratio of 3.55 and a beta of 1.30.

Workday (NASDAQ:WDAY) last posted its quarterly earnings results on Thursday, May 22nd. The software maker reported $2.23 earnings per share for the quarter, beating the consensus estimate of $2.01 by $0.22. The business had revenue of $2.24 billion for the quarter, compared to the consensus estimate of $2.22 billion. Workday had a return on equity of 6.13% and a net margin of 19.86%. The company’s quarterly revenue was up 12.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.74 EPS. Analysts expect that Workday, Inc. will post 2.63 EPS for the current fiscal year.

Workday Company Profile

Workday, Inc provides enterprise cloud applications in the United States and internationally. Its applications help its customers to plan, execute, analyze, and extend to other applications and environments to manage their business and operations. The company offers a suite of financial management applications to maintain accounting information in the general ledger; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; enhance financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations.