Workday (NASDAQ:WDAY) Shares Gap Down Following Analyst Downgrade

Shares of Workday Inc (NASDAQ:WDAY) gapped down before the market opened on Wednesday after Royal Bank of Canada lowered their price target on the stock to $196.00. The stock had previously closed at $182.44, but opened at $173.50. Royal Bank of Canada currently has an outperform rating on the stock. Workday shares last traded at $165.39, with a volume of 6,104,153 shares traded.

A number of other brokerages have also commented on WDAY. ValuEngine upgraded Workday from a “hold” rating to a “buy” rating in a report on Tuesday. Morgan Stanley lowered Workday from an “overweight” rating to an “equal weight” rating in a report on Wednesday, November 27th. Northland Securities reiterated a “hold” rating and set a $200.00 price target on shares of Workday in a report on Wednesday. Bank of America reiterated a “buy” rating and set a $260.00 price target on shares of Workday in a report on Wednesday, November 27th. Finally, Wedbush cut their price target on Workday from $195.00 to $190.00 and set a “neutral” rating for the company in a report on Wednesday. Four research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and twenty-one have given a buy rating to the company’s stock. Workday currently has a consensus rating of “Hold” and an average target price of $208.06.

In related news, CFO Robynne Sisco sold 10,238 shares of the company’s stock in a transaction on Tuesday, October 15th. The stock was sold at an average price of $182.42, for a total value of $1,867,615.96. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director David A. Duffield sold 300,785 shares of the company’s stock in a transaction on Wednesday, October 2nd. The shares were sold at an average price of $166.27, for a total value of $50,011,521.95. The disclosure for this sale can be found here. Insiders sold 509,292 shares of company stock valued at $86,126,565 over the last 90 days. 29.80% of the stock is currently owned by corporate insiders.

A number of institutional investors have recently added to or reduced their stakes in WDAY. Vanguard Group Inc. raised its stake in Workday by 7.7% during the second quarter. Vanguard Group Inc. now owns 9,609,541 shares of the software maker’s stock worth $1,975,530,000 after acquiring an additional 683,181 shares in the last quarter. Nuveen Asset Management LLC raised its stake in Workday by 19,929.2% during the second quarter. Nuveen Asset Management LLC now owns 547,999 shares of the software maker’s stock worth $112,658,000 after acquiring an additional 545,263 shares in the last quarter. Sumitomo Mitsui Trust Holdings Inc. raised its stake in Workday by 55.1% during the third quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 889,005 shares of the software maker’s stock worth $151,095,000 after acquiring an additional 315,764 shares in the last quarter. Nikko Asset Management Americas Inc. acquired a new position in Workday during the third quarter worth $44,215,000. Finally, Whale Rock Capital Management LLC raised its stake in Workday by 52.6% during the second quarter. Whale Rock Capital Management LLC now owns 572,963 shares of the software maker’s stock worth $117,790,000 after acquiring an additional 197,394 shares in the last quarter. Hedge funds and other institutional investors own 67.09% of the company’s stock.

The company has a debt-to-equity ratio of 0.11, a current ratio of 0.81 and a quick ratio of 0.81. The firm has a 50 day simple moving average of $165.95 and a 200-day simple moving average of $188.61. The stock has a market capitalization of $40.84 billion, a price-to-earnings ratio of -135.57 and a beta of 1.54.

Workday (NASDAQ:WDAY) last released its quarterly earnings data on Tuesday, December 3rd. The software maker reported $0.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.37 by $0.16. Workday had a negative return on equity of 15.05% and a negative net margin of 15.25%. The firm had revenue of $938.10 million during the quarter, compared to analyst estimates of $920.65 million. During the same period in the prior year, the company posted $0.31 earnings per share. The business’s revenue for the quarter was up 26.2% compared to the same quarter last year. On average, sell-side analysts forecast that Workday Inc will post -1.17 earnings per share for the current fiscal year.

Workday Company Profile (NASDAQ:WDAY)

Workday, Inc provides enterprise cloud applications worldwide. Its applications help its customers to manage critical business functions and optimize their financial and human capital resources. The company offers Workday Financial Management application that provides functions of general ledger, accounting, accounts payable and receivable, cash and asset management, revenue management, and grants management, as well as project and resource management, time and expense tracking, project billing, revenue recognition, financial reporting, and analytics.

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