Workday (NASDAQ:WDAY) Stock Price Up 19.4% – Still a Buy?

Workday, Inc. (NASDAQ:WDAY)’s stock price traded up 19.4% on Thursday . The stock traded as high as $227.49 and last traded at $209.3430. 5,655,865 shares traded hands during mid-day trading, an increase of 13% from the average session volume of 5,025,424 shares. The stock had previously closed at $175.29.

Workday News Roundup

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Reports of a possible Silver Lake takeover suggest investors may receive a premium to Workday’s unaffected market price. The stock’s rapid advance triggered multiple Nasdaq Limit Up-Limit Down trading pauses. Silver Lake in talks to buy Workday, sources say
• Positive Sentiment: CNBC reported that Workday surged before trading was halted, reinforcing that takeover speculation—not routine operating news—is the primary catalyst behind the move. Workday skyrockets before trading halted on report of Silver Lake takeover
• Neutral Sentiment: The acquisition discussions remain unconfirmed, and there is no indication that Silver Lake and Workday have reached a definitive agreement. Investors should expect elevated volatility as the market assesses the potential deal terms and financing.
• Neutral Sentiment: Recent commentary ahead of Workday’s quarterly results pointed to improving business momentum but emphasized the need for effective execution. Brokerages recently set an average price target near $179.80, which is less relevant if takeover negotiations progress but could weigh on the shares if discussions fail.

Analyst Ratings Changes

Several research analysts have commented on the stock. Cantor Fitzgerald restated an “overweight” rating on shares of Workday in a research report on Wednesday, June 17th. Needham & Company LLC reduced their price objective on Workday from $300.00 to $180.00 and set a “buy” rating for the company in a research report on Friday, May 22nd. BTIG Research reissued a “buy” rating and issued a $175.00 price objective on shares of Workday in a report on Monday, May 18th. Citigroup reaffirmed a “market perform” rating on shares of Workday in a research note on Friday, May 22nd. Finally, Wolfe Research reiterated an “outperform” rating and set a $160.00 price target on shares of Workday in a research report on Friday, May 22nd. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, thirteen have given a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $182.14.

Workday Trading Up 17.7%

The business’s 50 day moving average price is $142.14 and its two-hundred day moving average price is $138.76. The company has a market capitalization of $50.95 billion, a price-to-earnings ratio of 64.67, a price-to-earnings-growth ratio of 1.93 and a beta of 1.08. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.01 and a current ratio of 1.01.

Workday (NASDAQ:WDAY) last posted its quarterly earnings data on Thursday, May 21st. The software maker reported $2.66 EPS for the quarter, beating analysts’ consensus estimates of $2.51 by $0.15. Workday had a net margin of 8.60% and a return on equity of 14.75%. The business had revenue of $2.54 billion for the quarter, compared to analyst estimates of $2.52 billion. During the same quarter last year, the business earned $2.23 earnings per share. The business’s revenue for the quarter was up 13.5% on a year-over-year basis. Equities analysts forecast that Workday, Inc. will post 5.38 earnings per share for the current fiscal year.

Insider Buying and Selling at Workday

In other news, insider Robert Enslin sold 5,374 shares of Workday stock in a transaction on Sunday, July 5th. The stock was sold at an average price of $134.90, for a total transaction of $724,952.60. Following the transaction, the insider directly owned 239,469 shares in the company, valued at approximately $32,304,368.10. This trade represents a 2.19% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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. Also, CFO Zane Rowe sold 6,000 shares of the business’s stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $143.70, for a total value of $862,200.00. Following the completion of the sale, the chief financial officer directly owned 288,460 shares in the company, valued at $41,451,702. This represents a 2.04% 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. In the last ninety days, insiders sold 875,020 shares of company stock valued at $113,938,503. 18.64% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Workday

A number of institutional investors and hedge funds have recently bought and sold shares of WDAY. Brighton Jones LLC grew its position in Workday by 230.2% in the fourth quarter. Brighton Jones LLC now owns 4,005 shares of the software maker’s stock worth $1,033,000 after buying an additional 2,792 shares during the last quarter. Empowered Funds LLC boosted its stake in shares of Workday by 12.1% during the 1st quarter. Empowered Funds LLC now owns 11,142 shares of the software maker’s stock worth $2,602,000 after acquiring an additional 1,206 shares in the last quarter. Geneos Wealth Management Inc. grew its holdings in shares of Workday by 211.7% in the 1st quarter. Geneos Wealth Management Inc. now owns 187 shares of the software maker’s stock worth $44,000 after acquiring an additional 127 shares during the last quarter. Sivia Capital Partners LLC acquired a new position in shares of Workday in the 2nd quarter worth $281,000. Finally, NewEdge Advisors LLC raised its position in shares of Workday by 32.0% during the second 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 during the period. 89.81% of the stock is owned by institutional investors and hedge funds.

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.