Bank of America Lowers Workday Price Target to $285

Bank of America announced a reduction in the price target for Workday (NASDAQ:WDAY) from $310.00 to $285.00, as reported in a research note released on Wednesday. Despite the cut, the firm maintains a "buy" rating on the software company's stock. The new price target suggests a potential upside of 5.48% compared to Workday's current market price.

Recent Analyst Updates

Workday has received attention from various analysts recently. Loop Capital raised their target for Workday shares from $255.00 to $270.00, rating the stock as a "hold" on November 14. Following this, Scotiabank began coverage on November 18, giving Workday a "sector outperform" rating and setting a target price of $340.00. Additionally, BMO Capital Markets reaffirmed an "outperform" rating with a $300.00 target price on September 18. Earlier, KeyCorp lifted their price objective for Workday to $305.00 from $275.00 while rating it as "overweight". DA Davidson also adjusted their price target from $255.00 to $270.00, rating the stock as "neutral". Currently, one analyst has assigned a sell rating, while seven recommend holding, and 21 have given a buy rating to Workday. Data from MarketBeat indicates that the average rating for Workday is "Moderate Buy", with a consensus target price of $288.04.

Workday's Financial Performance

On November 26, Workday reported its quarterly earnings, revealing earnings per share (EPS) of $1.89, which exceeded the analyst consensus estimate of $1.76 by $0.13. The company exhibited a net margin of 19.59% and a return on equity of 5.34%. Workday recorded revenue of $2.16 billion for the quarter, surpassing the anticipated $2.13 billion, marking a 15.8% growth from the same quarter last year when it earned $0.47 EPS. Analysts collectively predict that Workday will achieve an EPS of 2.4 for the current fiscal year.

Insider Trading Activity

In insider trading news, David A. Duffield, a significant shareholder, sold 66,492 shares on September 3 at an average price of $261.20, totaling approximately $17.37 million. Post-sale, he continues to hold 102,997 shares, valued around $26.90 million, indicating a 39.23% reduction in his stake. Additionally, Director Wayne A.I. Frederick sold 1,828 shares on October 11 at an average price of $241.85, bringing in about $442,101.80, and now owns 8,674 shares valued at about $2.10 million, reflecting a 17.41% decrease in his position. Over the last 90 days, insiders have sold a total of 359,954 shares worth approximately $88.74 million, with insiders owning about 20.00% of the stock.

Institutional Investor Activities

Recent activity among institutional investors has also been notable. ORG Partners LLC increased its stake in Workday by an impressive 3,717.9% in the second quarter, now holding 3,207 shares worth $721,000 after acquiring 3,123 more shares. In the third quarter, Grafton Street Partners Fund LP established a new position valued at $4.42 million. ICICI Prudential Asset Management raised its stake by 32.4%, owning 31,878 shares worth $7.79 million after an additional purchase of 7,802 shares. Legal & General Group saw a 7.4% increase in its stake during the second quarter, owning 1,719,976 shares, valued at about $384.52 million. Also, Atria Investments lifted its position by 19.3%, now possessing 44,324 shares worth around $10.83 million. Institutional investors effectively hold about 89.81% of Workday's stock, indicating strong institutional interest.

Company Overview

Workday, Inc. provides enterprise cloud applications both in the U.S. and internationally. Its applications assist businesses in planning, executing, analyzing, and extending their operations by integrating with other applications. The company is particularly recognized for its suite of financial management applications, which aids organizations in maintaining accounting records, managing financial processes, and achieving operational insights.

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