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

Workday (NASDAQ:WDAY) had its target price upped by stock analysts at BMO Capital Markets from $182.00 to $230.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm currently has an “outperform” rating on the software maker’s stock. BMO Capital Markets’ target price indicates a potential upside of 18.82% from the company’s current price.

WDAY has been the topic of several other reports. UBS Group boosted their price target on Workday from $140.00 to $220.00 and gave the company a “neutral” rating in a research note on Friday, August 14th. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Workday in a research report on Friday. Piper Sandler lifted their price objective on shares of Workday from $145.00 to $190.00 and gave the company a “neutral” rating in a research note on Friday. Wells Fargo & Company lifted their price objective on shares of Workday from $185.00 to $215.00 and gave the company an “overweight” rating in a research note on Wednesday, August 12th. Finally, Barclays set a $224.00 target price on shares of Workday in a research report on Friday. Twenty research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Workday has a consensus rating of “Hold” and a consensus price target of $198.86.

Workday Stock Performance

WDAY stock opened at $193.57 on Friday. The stock has a 50-day moving average price of $155.95 and a 200-day moving average price of $140.36. Workday has a 1-year low of $110.36 and a 1-year high of $249.85. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 0.30. The firm has a market cap of $47.81 billion, a PE ratio of 60.49, a price-to-earnings-growth ratio of 2.03 and a beta of 1.08.

Workday (NASDAQ:WDAY) last announced its earnings results on Thursday, August 27th. The software maker reported $2.75 EPS for the quarter, beating the consensus estimate 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 for the quarter, compared to analyst estimates of $2.64 billion. During the same quarter in the prior year, the company earned $2.21 EPS. The firm’s revenue for the quarter was up 12.8% compared to the same quarter last year. As a group, equities research analysts expect that Workday will post 5.38 earnings per share for the current year.

Insider Transactions at Workday

In related news, CFO Zane Rowe sold 6,000 shares of the stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $143.70, for a total value of $862,200.00. Following the transaction, the chief financial officer directly owned 288,460 shares in the company, valued at $41,451,702. This trade represents a 2.04% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 the firm’s 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 transaction, the insider directly owned 105,049 shares in the company, valued at $12,820,179.96. This trade represents a 50.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 875,020 shares of company stock valued at $113,938,503 over the last ninety days. 18.64% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of WDAY. Strategic Investment Advisors MI grew its holdings in Workday by 1.6% during the second quarter. Strategic Investment Advisors MI now owns 3,263 shares of the software maker’s stock worth $777,000 after buying an additional 50 shares in the last quarter. L2 Asset Management LLC boosted its holdings in Workday by 7.8% during the 4th quarter. L2 Asset Management LLC now owns 1,079 shares of the software maker’s stock worth $232,000 after acquiring an additional 78 shares during the last quarter. Oregon Public Employees Retirement Fund boosted its holdings in Workday by 0.3% during the 4th quarter. Oregon Public Employees Retirement Fund now owns 24,798 shares of the software maker’s stock worth $5,326,000 after acquiring an additional 80 shares during the last quarter. Stevens Capital Management LP grew its stake in shares of Workday by 4.3% in the 4th quarter. Stevens Capital Management LP now owns 2,054 shares of the software maker’s stock worth $441,000 after acquiring an additional 84 shares in the last quarter. Finally, Colonial Trust Co SC raised its holdings in shares of Workday by 45.8% in the fourth quarter. Colonial Trust Co SC now owns 280 shares of the software maker’s stock valued at $60,000 after purchasing an additional 88 shares during the last quarter. Hedge funds and other institutional investors own 89.81% of the company’s stock.

Workday News Roundup

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Workday reported fiscal Q2 adjusted EPS of $2.75, above the roughly $2.61–$2.62 consensus, while revenue reached $2.649 billion, slightly exceeding estimates and increasing 12.8% year over year. Workday Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Subscription revenue climbed 13.9% to $2.471 billion. Management also said AI-related offerings represented more than 25% of new contract value, reinforcing the company’s positioning in enterprise AI for HR, finance and IT. Workday Fiscal 2027 Second-Quarter Results
• Positive Sentiment: Profitability was a major strength: net income reportedly rose to $632 million from $228 million a year earlier, while operating profit increased 26.2%. Workday also authorized an additional $4 billion share repurchase, which could support per-share results and signal confidence in cash generation. Workday Reports Higher Profit and Revenue
• Positive Sentiment: Canaccord Genuity raised its price target to $225, adding to bullish sentiment following the earnings beat. Canaccord Raises Workday Price Target
• Neutral Sentiment: Management’s outlook broadly met expectations and targets at least two points of non-GAAP margin expansion, but investors are watching whether AI adoption can offset slower growth in the coming years. Workday Signals Future Growth and Margin Targets
• Negative Sentiment: Workday’s projected subscription-revenue growth near 11% for fiscal 2028 implies continued deceleration from current levels, raising valuation concerns for a stock trading at a premium earnings multiple. Workday Outlook Despite AI Demand
• Negative Sentiment: Recent insider activity was heavily weighted toward selling, including substantial sales by founder David Duffield. While such transactions may be planned, they can weigh on investor sentiment.

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.