Stifel Nicolaus Raises Workday Price Target to $310.00

Workday (NASDAQ:WDAY) recently saw its price target elevated by investment analysts at Stifel Nicolaus from $270.00 to $310.00, as reported in a note released on Wednesday. This increase comes along with a maintained "hold" rating on the company's stock. The new target price indicates a potential upside of approximately 12.54% from the previous closing price of the stock.

Analyst Ratings Overview

Other financial analysts have also commented on Workday's stock recently. For instance, JMP Securities reiterated a "market outperform" rating and set a price target of $315.00 on February 6. Additionally, Redburn Atlantic initiated coverage on Workday recently, giving it a "neutral" rating. In contrast, Bank of America lowered its price target from $310.00 to $285.00 while maintaining a "buy" rating. Oppenheimer has raised its target from $300.00 to $320.00 with an "outperform" rating. Furthermore, Guggenheim upgraded its stance on Workday from "sell" to "neutral" earlier in January. Overall, ten research analysts have assigned a hold rating, while twenty have rated it as a buy, and one analyst has given it a strong buy rating. As per information from MarketBeat, Workday currently holds a consensus rating of "Moderate Buy" with a typical target price set at $296.11.

Current Stock Performance

On the day the price target was raised, Workday shares opened at $275.46. Over the past year, the stock has fluctuated, hitting a low of $199.81 and a high of $304.79. With a market capitalization of $73.27 billion, Workday has a P/E ratio of 45.68, a PEG ratio of 3.55, and a beta of 1.35. The software company has a quick ratio and current ratio both standing at 2.05, alongside a debt-to-equity ratio of 0.35. Its recent 50-day moving average price is $259.97, while the 200-day moving average price is $254.12.

Recent Earnings Report

Workday's financial performance was highlighted in its latest quarterly earnings report posted on February 25. The company reported earnings per share (EPS) of $0.48 for the quarter, which fell short of analysts' expectations by $1.27, with consensus estimates set at $1.75. Revenue for the quarter totaled $2.21 billion, slightly above analysts' forecasts of $2.18 billion. The company's return on equity stood at 6.13% with a net margin of 19.86%. Projections indicate that Workday is expected to achieve an EPS of 2.63 for the current fiscal year.

Insider Trading Activity

In insider news, CEO Carl M. Eschenbach sold 6,250 shares of Workday on January 6, at an average sale price of $253.86, resulting in a total sale amount of $1,586,625. Following this sale, he holds 13,972 shares valued at approximately $3.55 million, reflecting a 30.91% decrease in ownership. Additionally, major shareholder David A. Duffield sold 70,003 shares on December 2, totaling $17,584,753.60, and his ownership has decreased by 40.46%. Over the past ninety days, insiders have sold 438,819 shares worth around $113.14 million, with corporate insiders currently owning about 20.00% of the company's stock.

Institutional Investment Updates

Changes in institutional ownership have also been noted recently. Vanguard Group Inc. increased its holdings in Workday by 28.9% in the fourth quarter, now holding 20,142,800 shares valued at $5.20 billion after purchasing an additional 4.5 million shares. Janus Henderson Group PLC raised its position by 10.7% during the third quarter and now owns nearly 5 million shares worth approximately $1.22 billion. State Street Corp. and Geode Capital Management LLC have also increased their stakes. Currently, about 89.81% of Workday's stock is held by institutional investors.

About Workday

Workday, Inc. specializes in providing enterprise cloud applications for businesses globally. Its applications assist customers in managing various aspects of their business operations, including financial management through a suite of applications that streamline financial processes, enhance insight into financial performance, and improve internal control and auditability.

Workday, PriceTarget, Stocks