Workday (NASDAQ:WDAY) Lowered to “Hold” Rating by TD Cowen

TD Cowen cut shares of Workday (NASDAQ:WDAY) from a buy rating to a hold rating in a report issued on Wednesday, Marketbeat.com reports. They currently have $155.00 price target on the software maker’s stock.

Several other equities research analysts have also commented on WDAY. Citizens Jmp lowered shares of Workday from an “outperform” rating to a “market perform” rating in a research note on Wednesday, February 18th. Needham & Company LLC reissued a “buy” rating and issued a $300.00 price target on shares of Workday in a research report on Thursday, February 5th. Wall Street Zen upgraded Workday from a “buy” rating to a “strong-buy” rating in a research note on Saturday, February 14th. Wells Fargo & Company lowered their price objective on Workday from $290.00 to $255.00 and set an “overweight” rating for the company in a research note on Wednesday, February 18th. Finally, Morgan Stanley cut their target price on Workday from $280.00 to $200.00 and set an “equal weight” rating on the stock in a research note on Monday. One analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and fifteen have issued a Hold rating to the stock. According to data from MarketBeat, Workday has an average rating of “Moderate Buy” and a consensus price target of $208.28.

Workday Trading Up 2.2%

WDAY opened at $133.15 on Wednesday. The company has a quick ratio of 1.83, a current ratio of 1.83 and a debt-to-equity ratio of 0.34. Workday has a 52 week low of $117.76 and a 52 week high of $281.00. The stock has a market cap of $35.02 billion, a PE ratio of 51.61, a PEG ratio of 1.12 and a beta of 1.13. The business has a 50 day moving average of $182.80 and a 200-day moving average of $212.95.

Workday (NASDAQ:WDAY) last posted its quarterly earnings data on Tuesday, February 24th. The software maker reported $2.47 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.32 by $0.15. Workday had a return on equity of 12.93% and a net margin of 7.26%.The business had revenue of $2.53 billion during the quarter, compared to the consensus estimate of $2.52 billion. During the same quarter in the prior year, the company earned $1.92 earnings per share. The firm’s quarterly revenue was up 14.5% compared to the same quarter last year. Equities research analysts predict that Workday will post 2.63 earnings per share for the current fiscal year.

Insider Activity at Workday

In other Workday news, major shareholder David A. Duffield sold 82,884 shares of the business’s stock in a transaction dated Thursday, January 8th. The stock was sold at an average price of $209.75, for a total value of $17,384,919.00. Following the completion of the transaction, the insider owned 105,049 shares of the company’s stock, valued at approximately $22,034,027.75. The trade was a 44.10% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Richard Harry Sauer sold 1,130 shares of the stock in a transaction that occurred on Tuesday, January 6th. The shares were sold at an average price of $210.00, for a total transaction of $237,300.00. Following the transaction, the insider owned 85,398 shares in the company, valued at approximately $17,933,580. This trade represents a 1.31% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 370,321 shares of company stock valued at $78,866,401 over the last three months. 19.31% of the stock is owned by insiders.

Institutional Trading of Workday

Several large investors have recently added to or reduced their stakes in the business. Rakuten Securities Inc. bought a new position in Workday in the second quarter worth approximately $25,000. Measured Wealth Private Client Group LLC bought a new position in Workday in the 3rd quarter worth $26,000. DT Investment Partners LLC purchased a new position in Workday during the fourth quarter valued at $27,000. LRI Investments LLC bought a new stake in Workday during the fourth quarter valued at about $29,000. Finally, JPL Wealth Management LLC purchased a new stake in Workday in the third quarter worth about $30,000. 89.81% of the stock is currently owned by institutional investors.

Workday News Summary

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Q4 results beat consensus — revenue of $2.53B, EPS $2.47 and improved margins, showing solid subscription growth and stronger operating profit that underpins longer-term fundamentals. Workday Announces Fiscal 2026 Fourth Quarter and Full Year Financial Results
• Positive Sentiment: Some analysts and investors still see a buy case — Needham and several boutiques continue to rate WDAY bullish and highlight AI opportunity and institutional accumulation as potential catalysts. Balancing Near-Term Headwinds and AI-Driven Long-Term Upside: Rationale for a Buy Rating
• Neutral Sentiment: CEO sought to calm AI-disruption fears on the call, noting large AI vendors run on Workday’s systems — a credibility point for the platform but one that didn’t reverse the initial selloff. Workday Shares Drop 9% as CEO Says OpenAI, Google Use Its Software
• Negative Sentiment: Management guided FY27 subscription revenue below Wall Street expectations (growth guided down to ~12–13%), stoking concerns that macro weakness and longer deal cycles will slow top-line momentum. That guidance is the primary driver of the selloff. Workday forecasts 2027 annual subscription revenue below estimates
• Negative Sentiment: Analysts aggressively trimmed price targets and issued downgrades after the outlook — examples include UBS to $130 (neutral), Piper Sandler to $135 (neutral) and multiple other cuts; that wave amplifies selling pressure and amplifies headline risk. These Analysts Slash Their Forecasts On Workday After Q4 Results
• Negative Sentiment: Short interest rose sharply in February (≈12.99M shares, ~6.2% of float, up ~34% month-over-month), increasing downside pressure and the potential for outsized moves on intraday sentiment shifts.

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.