Workday, Inc. (NASDAQ:WDAY – Get Free Report) gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $121.85, but opened at $128.74. Workday shares last traded at $128.4130, with a volume of 3,115,963 shares trading hands.
The software maker reported $2.66 EPS for the quarter, beating analysts’ consensus estimates of $2.49 by $0.17. Workday had a net margin of 7.26% and a return on equity of 13.37%. The company had revenue of $2.54 billion for the quarter, compared to analyst estimates of $2.52 billion. During the same period in the prior year, the firm posted $2.23 EPS. The company’s quarterly revenue was up 13.5% on a year-over-year basis.
Key Stories Impacting Workday
Here are the key news stories impacting Workday this week:
- Positive Sentiment: Workday beat first-quarter earnings and revenue estimates, driven by stronger demand for its AI-powered finance and HR software. Workday beats first-quarter estimates on steady software demand
- Positive Sentiment: The company raised margin expectations and emphasized AI momentum, which investors view as evidence the AI strategy is starting to pay off. Workday jumps 10% as it bumps up margin forecast on AI strength
- Positive Sentiment: Analysts remained broadly constructive after the report, with William Blair reiterating a Buy rating and Morgan Stanley maintaining a Hold with a $185 price target. Workday: Buy Rating Reaffirmed on Strong Q1 Beat, Rapid AI Monetization, Margin Upgrade and Attractive Valuation
- Neutral Sentiment: Piper Sandler raised its price target to $145 but kept a Neutral rating, while Needham cut its target to $180 but still maintained a Buy, signaling mixed but still mostly supportive analyst views. Analyst price-target updates for Workday
- Neutral Sentiment: Workday also introduced new AI tools for IT service management and travel, reinforcing the company’s product expansion narrative. Workday Announces Sana for IT Service Management and New Travel Agent
Analyst Upgrades and Downgrades
Read Our Latest Research Report on Workday
Insider Buying and Selling
In other Workday news, major shareholder David A. Duffield sold 107,500 shares of the stock in a transaction that occurred on Tuesday, March 31st. The stock was sold at an average price of $129.76, for a total value of $13,949,200.00. Following the transaction, the insider owned 105,049 shares in the company, valued at approximately $13,631,158.24. This represents a 50.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Gerrit S. Kazmaier sold 9,356 shares of the firm’s stock in a transaction that occurred on Tuesday, April 7th. The shares were sold at an average price of $128.39, for a total value of $1,201,216.84. Following the completion of the sale, the insider directly owned 165,074 shares of the company’s stock, valued at $21,193,850.86. This trade represents a 5.36% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. Over the last ninety days, insiders have sold 989,814 shares of company stock worth $131,576,291. 18.64% of the stock is owned by company insiders.
Institutional Inflows and Outflows
Large investors have recently made changes to their positions in the business. Brighton Jones LLC increased its position in shares of Workday by 230.2% during the fourth quarter. Brighton Jones LLC now owns 4,005 shares of the software maker’s stock worth $1,033,000 after acquiring an additional 2,792 shares in the last quarter. Empowered Funds LLC lifted its position in Workday by 12.1% in the 1st quarter. Empowered Funds LLC now owns 11,142 shares of the software maker’s stock valued at $2,602,000 after acquiring an additional 1,206 shares in the last quarter. Geneos Wealth Management Inc. boosted its stake in Workday by 211.7% during the 1st quarter. Geneos Wealth Management Inc. now owns 187 shares of the software maker’s stock valued at $44,000 after purchasing an additional 127 shares during the last quarter. Sivia Capital Partners LLC acquired a new position in Workday during the 2nd quarter valued at about $281,000. Finally, NewEdge Advisors LLC increased its holdings in Workday by 32.0% during the 2nd quarter. NewEdge Advisors LLC now owns 6,597 shares of the software maker’s stock worth $1,583,000 after purchasing an additional 1,600 shares in the last quarter. 89.81% of the stock is owned by institutional investors.
Workday Price Performance
The stock has a market capitalization of $32.92 billion, a P/E ratio of 49.45, a price-to-earnings-growth ratio of 1.23 and a beta of 1.04. The business has a fifty day simple moving average of $126.10 and a 200 day simple moving average of $169.57. The company has a current ratio of 1.32, a quick ratio of 1.32 and a debt-to-equity ratio of 0.38.
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.
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