Workday (NASDAQ:WDAY) Hits New 12-Month Low Following Analyst Downgrade

Workday, Inc. (NASDAQ:WDAY) hit a new 52-week low during trading on Monday after Rosenblatt Securities lowered their price target on the stock from $180.00 to $150.00. Rosenblatt Securities currently has a buy rating on the stock. Workday traded as low as $135.00 and last traded at $131.1160, with a volume of 19087 shares. The stock had previously closed at $137.81.

Several other equities analysts also recently weighed in on the company. Royal Bank Of Canada reduced their target price on Workday from $320.00 to $300.00 and set an “outperform” rating on the stock in a research report on Monday, January 5th. Guggenheim reiterated a “buy” rating and set a $285.00 price objective on shares of Workday in a report on Wednesday, February 18th. Macquarie Infrastructure restated a “buy” rating on shares of Workday in a report on Wednesday, November 26th. Morgan Stanley cut their price target on shares of Workday from $280.00 to $200.00 and set an “equal weight” rating on the stock in a research note on Monday. Finally, BMO Capital Markets lowered their price objective on shares of Workday from $204.00 to $182.00 and set an “outperform” rating for the company in a research note on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and sixteen have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $232.22.

Insider Activity

In other news, CFO Zane Rowe sold 6,000 shares of the stock in a transaction on Tuesday, January 6th. The shares were sold at an average price of $208.75, for a total value of $1,252,500.00. Following the completion of the sale, the chief financial officer owned 159,158 shares of the company’s stock, valued at $33,224,232.50. This represents a 3.63% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Robert Enslin sold 22,185 shares of the firm’s stock in a transaction on Monday, January 5th. The shares were sold at an average price of $210.17, for a total transaction of $4,662,621.45. Following the completion of the transaction, the insider directly owned 106,330 shares in the company, valued at approximately $22,347,376.10. This represents a 17.26% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 370,321 shares of company stock valued at $78,866,401 over the last quarter. 20.00% of the stock is owned by insiders.

Trending Headlines about Workday

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Q4 beats — Workday reported better‑than‑expected fiscal Q4 results: revenue and EPS topped consensus and subscription revenue grew year‑over‑year, underpinned by strong cash flow. Workday Q4 results press release
• Positive Sentiment: Analyst buy thesis remains for some — Needham reaffirmed a Buy and kept a $300 price target, arguing AI investments offer long‑term upside despite near‑term headwinds. Needham buy rating
• Neutral Sentiment: Leadership/AI strategy — Workday has emphasized agentic AI as a growth driver and recently brought back a founder CEO, a strategic pivot that could help execution but adds uncertainty about near‑term priorities. CEO return and AI focus
• Neutral Sentiment: Broader software sell‑off — The pullback in software names and macro uncertainty amplified the reaction to Workday’s guidance, meaning market moves reflect sector trends as well as company specifics. Software sector pressure
• Negative Sentiment: Guidance miss — Management forecast FY‑2027 subscription revenue below Street estimates (and guided for slower subscription growth), signaling weaker new‑client wins as corporate tech spend moderates. Revenue guidance below estimates
• Negative Sentiment: Margins and AI investment cost — Workday warned of margin pressure as it accelerates AI investments and guidance for adjusted operating income was cautious, pressuring investor sentiment about near‑term profitability. Margin outlook and AI costs
• Negative Sentiment: Analyst reactions — Several brokers pared targets or downgraded WDAY (Jefferies, Mizuho among them); JPMorgan lowered its target too, increasing near‑term selling pressure. Jefferies cut Mizuho downgrade (summary) JPM price‑target move (summary)

Institutional Investors Weigh In On Workday

Several hedge funds have recently modified their holdings of WDAY. Rakuten Securities Inc. purchased a new stake in shares of Workday during the second quarter valued at approximately $25,000. Measured Wealth Private Client Group LLC acquired a new stake in Workday during the 3rd quarter valued at $26,000. DT Investment Partners LLC purchased a new stake in Workday during the 4th quarter worth $27,000. LRI Investments LLC acquired a new position in Workday in the 4th quarter worth $29,000. Finally, JPL Wealth Management LLC purchased a new position in Workday in the 3rd quarter valued at about $30,000. 89.81% of the stock is currently owned by hedge funds and other institutional investors.

Workday Stock Up 0.8%

The firm has a 50 day moving average price of $184.46 and a two-hundred day moving average price of $213.51. The company has a quick ratio of 1.83, a current ratio of 1.83 and a debt-to-equity ratio of 0.34. The company has a market capitalization of $34.25 billion, a price-to-earnings ratio of 54.72, a P/E/G ratio of 1.11 and a beta of 1.13.

Workday (NASDAQ:WDAY) last issued its quarterly earnings results on Tuesday, February 24th. The software maker reported $2.47 EPS for the quarter, beating analysts’ consensus estimates of $2.32 by $0.15. Workday had a return on equity of 10.50% and a net margin of 6.95%.The firm had revenue of $2.53 billion during the quarter, compared to the consensus estimate of $2.52 billion. During the same quarter in the prior year, the business posted $1.92 earnings per share. Workday’s revenue for the quarter was up 14.5% on a year-over-year basis. As a group, sell-side analysts expect that Workday, Inc. will post 2.63 earnings per share for the current year.

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.