Workday (NASDAQ:WDAY) Stock Rating Lowered by Wall Street Zen

Workday (NASDAQ:WDAY) was downgraded by research analysts at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a report released on Saturday.

Other analysts also recently issued reports about the stock. JPMorgan Chase & Co. lowered their price target on shares of Workday from $270.00 to $230.00 and set an “overweight” rating for the company in a research note on Tuesday. Needham & Company LLC reiterated a “buy” rating and issued a $300.00 price objective on shares of Workday in a report on Wednesday. Barclays dropped their target price on Workday from $230.00 to $200.00 and set an “overweight” rating for the company in a report on Wednesday. Deutsche Bank Aktiengesellschaft reduced their price target on Workday from $265.00 to $190.00 and set a “buy” rating on the stock in a research report on Wednesday, February 18th. Finally, Macquarie Infrastructure reaffirmed a “buy” rating on shares of Workday in a research note on Wednesday, November 26th. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and fifteen have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $205.19.

Workday Stock Down 3.8%

Shares of NASDAQ:WDAY opened at $133.76 on Friday. The firm has a fifty day moving average of $179.53 and a 200 day moving average of $211.88. Workday has a 52-week low of $117.76 and a 52-week high of $276.00. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.83 and a current ratio of 1.32. The firm has a market capitalization of $35.18 billion, a PE ratio of 51.85, a price-to-earnings-growth ratio of 1.28 and a beta of 1.13.

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. The firm had revenue of $2.53 billion during the quarter, compared to analysts’ expectations of $2.52 billion. Workday had a return on equity of 13.37% and a net margin of 7.26%.The company’s revenue for the quarter was up 14.5% compared to the same quarter last year. During the same period in the prior year, the business earned $1.92 EPS. As a group, research analysts anticipate that Workday will post 2.63 EPS for the current fiscal year.

Insider Activity at Workday

In related news, CAO Mark S. Garfield sold 953 shares of the stock in a transaction dated Thursday, January 8th. The shares were sold at an average price of $209.56, for a total value of $199,710.68. Following the completion of the transaction, the chief accounting officer directly owned 35,336 shares in the company, valued at $7,405,012.16. This trade represents a 2.63% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, 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 transaction of $17,384,919.00. Following the sale, the insider directly owned 105,049 shares in the company, valued at $22,034,027.75. The trade was a 44.10% 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 ninety days. Insiders own 19.31% of the company’s stock.

Institutional Trading of Workday

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. PKO Investment Management Joint Stock Co acquired a new stake in Workday in the third quarter valued at approximately $1,805,000. Phoenix Financial Ltd. acquired a new position in shares of Workday during the third quarter worth $2,000,000. Rakuten Investment Management Inc. purchased a new stake in shares of Workday during the 3rd quarter valued at $124,718,000. Norges Bank purchased a new stake in shares of Workday during the 2nd quarter valued at $442,702,000. Finally, EULAV Asset Management boosted its position in shares of Workday by 69.4% in the 3rd quarter. EULAV Asset Management now owns 61,000 shares of the software maker’s stock worth $14,685,000 after purchasing an additional 25,000 shares in the last quarter. Hedge funds and other institutional investors own 89.81% of the company’s stock.

Key Workday News

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Insperity partnership expands Workday into the SMB market with the general availability of Insperity HRScale, pairing Workday HCM with outsourced HR services — a tangible route to new recurring revenue and smaller-account penetration. Workday And Insperity Target SMB Growth With New HRScale Partnership
• Positive Sentiment: Healthcare integrations: Kahuna and Skillcentrix will bring clinically validated skills data into Workday for frontline healthcare workforces, strengthening industry-specific stickiness and compliance value of the platform. Kahuna and Skillcentrix Partner to Bring Trusted, Clinically Validated Skills Data into Workday
• Positive Sentiment: Bullish coverage and buyback/institutional support arguments note solid Q4 execution (revenue and EPS beat, margin expansion) and argue the pullback presents a long-term buying opportunity. Workday, Seriously, It’s Time to Buy This SaaS Leader
• Neutral Sentiment: Q4 results mixed: revenue and EPS topped expectations and margins improved, but management issued softer near-term guidance (2027), creating uncertainty around growth cadence despite operating leverage. Workday (WDAY) Is Down 9.0% After Softer 2027 Outlook and CEO Shift Back to Co-Founder
• Neutral Sentiment: Analyst reactions are mixed — some firms raised or maintained Buy ratings and raised targets, while many cut price targets after the guidance miss; that spread increases short-term volatility as investors sort the outlook. Workday Given New $206.00 Price Target at The Goldman Sachs Group
• Negative Sentiment: Significant analyst downgrades and price-target cuts (e.g., DA Davidson to $125, Citi cut to $148, UBS to $130 and multiple others) have pressured the stock and triggered a gap down in early trading. Workday price target lowered to $125 from $250 at DA Davidson
• Negative Sentiment: Macro/sector risk: renewed AI-selloff and skepticism about how AI will reshape enterprise software have depressed valuation multiples across SaaS names and increased investor risk aversion for names like Workday. Commentary from high‑profile commentators has added to the negative sentiment. Will AI Kill Software? Fear Creeps Beyond ‘Saaspocalypse,’ Hits IBM, DoorDash
• Negative Sentiment: Market reaction driven by guidance cut and executive leadership change (co‑founder Aneel Bhusri returning as CEO) increased uncertainty and likely accelerated selling pressure. Workday Retreats As Fiscal 2027 Guidance Falls Short Amid CEO’s Return

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.