Bank of America Lowers Workday Price Target to $285.00

Workday (NASDAQ:WDAY) has seen a reduction in its price target from analysts at Bank of America. In a research note released on Wednesday, the firm lowered the target price from $310.00 to $285.00, while maintaining a "buy" rating on the shares. This revised price target suggests a potential upside of 5.48% from Workday's current trading price.

Recent Analyst Ratings

In recent days, Workday has attracted attention from several other investment firms. Loop Capital adjusted their price target for Workday, increasing it from $255.00 to $270.00 and issuing a "hold" recommendation as of November 14th. On November 18th, Scotiabank began coverage of Workday with a "sector outperform" rating and set a target price of $340.00. BMO Capital Markets reaffirmed an "outperform" rating and set a price target of $300.00 on September 18th. Meanwhile, KeyCorp raised their price target from $275.00 to $305.00, assigning an "overweight" rating on August 23rd. DA Davidson also raised their price target from $255.00 to $270.00 on the same day, giving the stock a "neutral" rating. Overall, one analyst has issued a sell rating for Workday, while seven analysts have rated it as a hold, and twenty-one have a buy rating. According to MarketBeat, Workday has an average rating of "Moderate Buy" with a consensus target price of $288.04.

Workday's Stock Performance

As of Wednesday, shares of Workday opened at $270.19. The company maintains a solid financial position with a debt-to-equity ratio of 0.36, a quick ratio of 2.04, and a current ratio of 2.04. Workday’s fifty-day moving average stands at $248.52, while the two-hundred-day moving average is $237.21. With a market capitalization of $71.60 billion, Workday has a PE ratio of 47.07 and a PEG ratio of 5.31, complemented by a beta of 1.35. In the past year, the stock has reached a low of $199.81 and a high of $311.28.

Earnings Reports

Workday recently released its quarterly earnings results on November 26th. The company reported earnings per share (EPS) of $1.89, exceeding analysts' expectations of $1.76 by $0.13. Workday’s net margin was 19.59%, and it achieved a return on equity of 5.34%. The company reported revenue of $2.16 billion for the quarter, slightly surpassing the consensus estimate of $2.13 billion. While the earnings from the previous year were $0.47 EPS, the revenue has shown an annual growth of 15.8%. Analysts predict that Workday will post an EPS of 2.4 for the current fiscal year.

Insider Trading Activity

In recent insider trading, major shareholder David A. Duffield sold 66,492 shares on September 3rd at an average price of $261.20, totaling approximately $17.4 million from the transaction. Following this sale, Duffield retains 102,997 shares valued at around $26.9 million. Additionally, Director Wayne A.I. Frederick sold 1,828 shares on October 11th, with an average sale price of $241.85 amounting to around $442,000. Insider trades in the past three months have seen 359,954 shares sold, worth $88.7 million, indicating that insiders own about 20% of the stock.

Institutional Investment Insights

Recent movements among hedge funds and institutional investors show a mix of increased stakes in Workday. For instance, ORG Partners LLC significantly lifted its stake by 3,717.9% during the second quarter, now owning 3,207 shares valued at $721,000. Grafton Street Partners Fund LP acquired a new position valued at $4.42 million in the third quarter. ICICI Prudential Asset Management Co. raised its position by 32.4% during the same period, owning 31,878 shares now valued at around $7.79 million. Legal & General Group Plc also increased its stake during the second quarter and now owns approximately $384.5 million in shares. Currently, 89.81% of Workday’s stock is owned by institutional investors and hedge funds.

About Workday, Inc.

Workday, Inc. specializes in providing enterprise cloud applications, both domestically and internationally. Their applications assist customers in planning, executing, and analyzing their business operations. Workday offers a suite of financial management applications, helping businesses manage their accounting, financial processes, and operational analysis.

Workday, PriceTarget, Analysts