Workday (NASDAQ:WDAY) Price Target Raised to $230.00

Workday (NASDAQ:WDAY) had its price objective hoisted by Needham & Company LLC from $180.00 to $230.00 in a report published on Friday, Marketbeat Ratings reports. They currently have a buy rating on the software maker’s stock.

WDAY has been the subject of several other reports. Guggenheim reissued a “buy” rating and issued a $275.00 price objective on shares of Workday in a research note on Friday, August 21st. KeyCorp reaffirmed an “overweight” rating on shares of Workday in a research note on Friday, August 14th. Capital One Financial set a $219.00 target price on Workday and gave the company an “equal weight” rating in a report on Friday. Monness Crespi & Hardt increased their price target on shares of Workday from $150.00 to $202.00 and gave the stock a “buy” rating in a research report on Monday, August 10th. Finally, Wolfe Research restated an “outperform” rating and set a $160.00 price target on shares of Workday in a report on Friday, May 22nd. Twenty investment analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $206.00.

Workday Stock Performance

NASDAQ WDAY opened at $204.72 on Friday. Workday has a twelve month low of $110.36 and a twelve month high of $249.85. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.91 and a current ratio of 0.91. The stock has a market cap of $50.57 billion, a price-to-earnings ratio of 41.53, a PEG ratio of 2.17 and a beta of 1.08. The firm’s 50 day moving average price is $157.71 and its two-hundred day moving average price is $140.71.

Workday (NASDAQ:WDAY) last announced its earnings results on Thursday, August 27th. The software maker reported $2.75 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.61 by $0.14. The company had revenue of $2.65 billion for the quarter, compared to the consensus estimate of $2.64 billion. Workday had a net margin of 12.32% and a return on equity of 20.95%. The company’s revenue was up 12.8% on a year-over-year basis. During the same period in the previous year, the business earned $2.21 EPS. Equities analysts anticipate that Workday will post 5.39 EPS for the current year.

Insider Transactions at Workday

In other news, insider Robert Enslin sold 5,374 shares of the firm’s 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 transaction, the insider owned 239,469 shares in the company, valued at approximately $32,304,368.10. This trade represents a 2.19% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 on Tuesday, June 30th. The shares were sold at an average price of $122.04, for a total transaction of $13,119,300.00. Following the completion of the sale, the insider directly owned 105,049 shares of the company’s stock, valued at approximately $12,820,179.96. The trade was 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. Insiders have sold a total of 875,020 shares of company stock worth $113,938,503 in the last 90 days. 18.64% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in WDAY. Brighton Jones LLC raised its stake in shares of Workday by 230.2% in the 4th quarter. Brighton Jones LLC now owns 4,005 shares of the software maker’s stock valued at $1,033,000 after acquiring an additional 2,792 shares in the last quarter. Empowered Funds LLC boosted its position in Workday by 12.1% during the first quarter. Empowered Funds LLC now owns 11,142 shares of the software maker’s stock worth $2,602,000 after purchasing an additional 1,206 shares during the period. Geneos Wealth Management Inc. boosted its position in Workday by 211.7% during the first quarter. Geneos Wealth Management Inc. now owns 187 shares of the software maker’s stock worth $44,000 after purchasing an additional 127 shares during the period. Sivia Capital Partners LLC acquired a new position in Workday during the second quarter valued at approximately $281,000. Finally, NewEdge Advisors LLC grew its holdings in Workday by 32.0% during the second quarter. NewEdge Advisors LLC now owns 6,597 shares of the software maker’s stock valued at $1,583,000 after purchasing an additional 1,600 shares during the last quarter. Institutional investors and hedge funds own 89.81% of the company’s stock.

Key Workday News

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, while subscription revenue increased 13.9% to $2.471 billion. Adjusted EPS of $2.75 exceeded the $2.61 consensus estimate. Workday Announces Fiscal 2027 Second Quarter Financial Results
• Positive Sentiment: Profitability was a major bright spot: net income rose sharply to $632 million from $228 million a year earlier, and analysts cited subscription growth and expanding margins as reasons for increased price targets. WDAY Q2 Earnings Beat Estimates on Subscription Growth, Margin Gains
• Positive Sentiment: AI products accounted for more than one-quarter of new contract value, suggesting growing customer demand for Workday’s AI agents and supporting the company’s longer-term growth strategy. AI Products Accounted for More Than a Quarter of Workday’s New Q2 Contract Value
• Positive Sentiment: Workday authorized a substantial $4 billion share-repurchase program, potentially providing support for per-share results and signaling confidence in cash generation and valuation.
• Positive Sentiment: Several firms raised their targets after the report, including BMO Capital Markets and Needham to $230, KeyCorp to $215 and Monness to $218, with buy, overweight or outperform ratings.
• Neutral Sentiment: Analyst opinion remains divided. Some see AI momentum and margin expansion driving upside, while others believe the current valuation already reflects much of the improvement.
• Neutral Sentiment: Jim Cramer characterized the results as evidence that there is no broad SaaS-sector meltdown, supporting sentiment toward enterprise software stocks. Jim Cramer Says Workday Results Show No SaaS Meltdown in Sight
• Negative Sentiment: Workday’s fiscal 2027 revenue outlook of approximately $9.9 billion to $10.0 billion was below the roughly $10.7 billion analyst consensus, raising concerns about a potential slowdown and the risk of another guidance reduction. Workday’s outlook meets estimates despite AI demand
• Negative Sentiment: TD Cowen, Freedom Broker, Piper Sandler and DA Davidson maintained neutral or hold views, with targets ranging from $190 to $210—mostly indicating limited upside or downside from recent levels.

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.