Workday (NASDAQ:WDAY) Shares Gap Down – Time to Sell?

Shares of Workday, Inc. (NASDAQ:WDAY) gapped down prior to trading on Thursday . The stock had previously closed at $137.88, but opened at $131.40. Workday shares last traded at $136.1550, with a volume of 479,177 shares trading hands.

More Workday News

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Workday continues to get credit for solid operating performance, including strong revenue growth, better-than-expected earnings, and expanding AI-related optimism around its enterprise software platform. Workday (WDAY) Stock Looks Fairly Valued Despite Fresh AI Growth Optimism
• Positive Sentiment: Recent commentary suggests the stock may be undervalued after the selloff, with some analysts pointing to healthy backlog growth and continued demand for Workday’s cloud applications. Workday (WDAY) Could Be 19% Undervalued After Risk Off Selling Hits Software
• Positive Sentiment: Workday appointed John Lombard to lead Asia Pacific growth, reinforcing its international expansion strategy and long-term market opportunity. Workday (WDAY) Appoints John Lombard To Lead Asia Pacific Growth
• Neutral Sentiment: Several insiders, including the CFO and other executives, sold shares in pre-arranged 10b5-1 transactions tied to tax withholding on equity awards. These sales are worth watching, but they do not necessarily signal a change in business outlook.
• Negative Sentiment: Workday has been caught in a broader software selloff after a KeyBanc downgrade of Salesforce raised concerns about AI execution across the sector, dragging down peer stocks as well. Salesforce Downgraded On Views ‘Agentforce, As A Product, Just Isn’t There’
• Negative Sentiment: Heavy insider selling from prominent names, including major shareholder David Duffield, has added a cautious tone for investors even though the trades were disclosed as pre-planned.

Analysts Set New Price Targets

A number of research firms have recently commented on WDAY. Royal Bank Of Canada restated an “outperform” rating on shares of Workday in a research note on Friday, May 22nd. Barclays upgraded Workday from an “overweight” rating to a “buy” rating in a report on Friday, May 22nd. Oppenheimer reissued an “outperform” rating on shares of Workday in a research report on Thursday, June 11th. Needham & Company LLC lowered their price target on Workday from $300.00 to $180.00 and set a “buy” rating on the stock in a research report on Friday, May 22nd. Finally, KeyCorp upped their price objective on Workday from $155.00 to $158.00 and gave the stock an “overweight” rating in a research note on Friday, May 22nd. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Workday currently has an average rating of “Moderate Buy” and a consensus price target of $184.00.

Workday Stock Down 0.6%

The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 0.30. The firm’s 50 day moving average price is $129.10 and its two-hundred day moving average price is $147.76. The company has a market capitalization of $33.84 billion, a price-to-earnings ratio of 42.69, a price-to-earnings-growth ratio of 1.54 and a beta of 1.11.

Workday (NASDAQ:WDAY) last issued its earnings results on Thursday, May 21st. The software maker reported $2.66 earnings per share (EPS) for the quarter, beating the consensus estimate 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 during the quarter, compared to the consensus estimate of $2.52 billion. During the same period last year, the business posted $2.23 EPS. Workday’s revenue was up 13.5% on a year-over-year basis. Sell-side analysts anticipate that Workday, Inc. will post 5.34 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, major shareholder David A. Duffield sold 107,500 shares of the business’s stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $135.24, for a total transaction of $14,538,300.00. Following the transaction, the insider directly owned 105,049 shares of the company’s stock, valued at approximately $14,206,826.76. The trade was a 50.58% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Gerrit S. Kazmaier sold 2,728 shares of the stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $143.62, for a total value of $391,795.36. Following the completion of the sale, the insider owned 266,388 shares in the company, valued at approximately $38,258,644.56. This trade represents a 1.01% 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. Insiders have sold 768,187 shares of company stock worth $99,287,607 over the last ninety days. 18.64% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Workday

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in WDAY. Rakuten Securities Inc. acquired a new position in shares of Workday in the second quarter valued at $25,000. Measured Wealth Private Client Group LLC acquired a new stake in shares of Workday during the 3rd quarter worth about $26,000. DT Investment Partners LLC bought a new stake in shares of Workday during the 4th quarter worth about $27,000. LRI Investments LLC bought a new stake in shares of Workday during the 4th quarter worth about $29,000. Finally, JPL Wealth Management LLC acquired a new position in Workday in the 3rd quarter valued at about $30,000. 89.81% of the stock is owned by institutional investors.

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.