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

Workday Inc (NASDAQ:WDAY) shares 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 recently issued reports on WDAY. Needham & Company LLC restated a “buy” rating and set a $250.00 target price on shares of Workday in a report on Tuesday, November 5th. Wells Fargo & Co set a $210.00 target price on Workday and gave the stock a “buy” rating in a report on Friday, August 30th. KeyCorp set a $235.00 target price on Workday and gave the stock a “buy” rating in a report on Thursday, August 29th. Morgan Stanley cut Workday from an “overweight” rating to an “equal weight” rating in a report on Wednesday, November 27th. Finally, Robert W. Baird reduced their target price on Workday from $220.00 to $210.00 and set an “outperform” rating on the stock in a report on Wednesday. Four analysts have rated the stock with a sell rating, eleven have issued a hold rating and twenty-one have given a buy rating to the stock. Workday currently has an average rating of “Hold” and an average price target of $208.06.

In related news, Director David A. Duffield sold 271 shares of Workday stock in a transaction that occurred on Tuesday, October 15th. The stock was sold at an average price of $184.71, for a total value of $50,056.41. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Robynne Sisco sold 10,238 shares of Workday stock in a transaction that occurred on Tuesday, October 15th. The shares were sold at an average price of $182.42, for a total value of $1,867,615.96. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 509,292 shares of company stock worth $86,126,565. 29.80% of the stock is currently owned by insiders.

Institutional investors have recently made changes to their positions in the stock. Banco de Sabadell S.A acquired a new stake in Workday in the 2nd quarter valued at approximately $31,000. Motco acquired a new stake in Workday in the 2nd quarter valued at approximately $39,000. Advantage Investment Management LLC raised its position in Workday by 89.0% in the 2nd quarter. Advantage Investment Management LLC now owns 189 shares of the software maker’s stock valued at $39,000 after buying an additional 89 shares during the last quarter. San Francisco Sentry Investment Group CA raised its position in Workday by 445.7% in the 3rd quarter. San Francisco Sentry Investment Group CA now owns 191 shares of the software maker’s stock valued at $33,000 after buying an additional 156 shares during the last quarter. Finally, Kavar Capital Partners LLC acquired a new stake in Workday in the 2nd quarter valued at approximately $41,000. 67.09% of the stock is currently owned by institutional investors and hedge funds.

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

Workday (NASDAQ:WDAY) last announced its earnings results on Tuesday, December 3rd. The software maker reported $0.53 earnings per share (EPS) for the quarter, beating the Zacks’ 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 business had revenue of $938.10 million for the quarter, compared to analyst estimates of $920.65 million. During the same quarter last year, the firm earned $0.31 EPS. Workday’s revenue for the quarter was up 26.2% compared to the same quarter last year. Sell-side analysts predict that Workday Inc will post -1.17 EPS 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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