Cantor Fitzgerald Cuts Workday (NASDAQ:WDAY) Price Target to $205.00

Workday (NASDAQ:WDAY) had its price objective decreased by stock analysts at Cantor Fitzgerald from $220.00 to $205.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage presently has an “overweight” rating on the software maker’s stock. Cantor Fitzgerald’s price target would indicate a potential upside of 5.90% from the stock’s previous close.

A number of other analysts have also commented on the stock. Capital One Financial set a $219.00 price target on shares of Workday in a research note on Friday. Piper Sandler lifted their price target on Workday from $145.00 to $190.00 and gave the stock a “neutral” rating in a report on Friday. Morgan Stanley lifted their price target on shares of Workday from $145.00 to $180.00 and gave the stock an “underweight” rating in a report on Friday. TD Cowen reissued a “hold” rating on shares of Workday in a report on Thursday, August 20th. Finally, Lake Street Capital set a $205.00 price target on shares of Workday in a research report on Friday, August 14th. Twenty research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, Workday currently has an average rating of “Hold” and a consensus target price of $196.03.

Workday Stock Up 1.5%

Shares of Workday stock opened at $193.57 on Friday. The firm has a market cap of $47.81 billion, a price-to-earnings ratio of 60.49, a PEG ratio of 2.03 and a beta of 1.08. Workday has a one year low of $110.36 and a one year high of $249.85. The stock’s 50-day moving average is $155.95 and its 200 day moving average is $140.36. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.01 and a quick ratio of 1.01.

Workday (NASDAQ:WDAY) last announced its quarterly earnings data on Thursday, August 27th. The software maker reported $2.75 EPS for the quarter, topping the consensus estimate of $2.61 by $0.14. Workday had a net margin of 8.60% and a return on equity of 14.75%. The company had revenue of $2.65 billion during the quarter, compared to the consensus estimate of $2.64 billion. During the same quarter last year, the firm posted $2.21 EPS. The company’s quarterly revenue was up 12.8% on a year-over-year basis. Equities research analysts anticipate that Workday will post 5.38 EPS for the current year.

Insider Buying and Selling

In other Workday news, insider Robert Enslin sold 5,374 shares of the firm’s stock in a transaction dated Sunday, July 5th. The stock was sold at an average price of $134.90, for a total transaction of $724,952.60. Following the sale, the insider owned 239,469 shares in the company, valued at $32,304,368.10. This trade represents a 2.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 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 company’s stock in a transaction dated 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 transaction, the chief financial officer owned 288,460 shares of the company’s stock, valued at $41,451,702. The trade was a 2.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. Over the last three months, insiders have sold 875,020 shares of company stock worth $113,938,503. Insiders own 18.64% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. Plato Investment Management Ltd purchased a new stake in Workday during the 2nd quarter valued at about $1,115,000. Norges Bank purchased a new position in shares of Workday in the fourth quarter valued at about $448,804,000. S&CO Inc. bought a new stake in shares of Workday in the second quarter worth about $2,284,000. Harvest Fund Management Co. Ltd grew its position in shares of Workday by 40.1% in the 4th quarter. Harvest Fund Management Co. Ltd now owns 55,605 shares of the software maker’s stock worth $11,943,000 after buying an additional 15,903 shares during the last quarter. Finally, Aurora Investment Counsel purchased a new stake in Workday in the fourth quarter worth $2,357,000. 89.81% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Workday

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Workday reported fiscal Q2 adjusted EPS of $2.75, above the roughly $2.61–$2.62 consensus, while revenue reached $2.649 billion, slightly exceeding estimates and increasing 12.8% year over year. Workday Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Subscription revenue climbed 13.9% to $2.471 billion. Management also said AI-related offerings represented more than 25% of new contract value, reinforcing the company’s positioning in enterprise AI for HR, finance and IT. Workday Fiscal 2027 Second-Quarter Results
• Positive Sentiment: Profitability was a major strength: net income reportedly rose to $632 million from $228 million a year earlier, while operating profit increased 26.2%. Workday also authorized an additional $4 billion share repurchase, which could support per-share results and signal confidence in cash generation. Workday Reports Higher Profit and Revenue
• Positive Sentiment: Canaccord Genuity raised its price target to $225, adding to bullish sentiment following the earnings beat. Canaccord Raises Workday Price Target
• Neutral Sentiment: Management’s outlook broadly met expectations and targets at least two points of non-GAAP margin expansion, but investors are watching whether AI adoption can offset slower growth in the coming years. Workday Signals Future Growth and Margin Targets
• Negative Sentiment: Workday’s projected subscription-revenue growth near 11% for fiscal 2028 implies continued deceleration from current levels, raising valuation concerns for a stock trading at a premium earnings multiple. Workday Outlook Despite AI Demand
• Negative Sentiment: Recent insider activity was heavily weighted toward selling, including substantial sales by founder David Duffield. While such transactions may be planned, they can weigh on investor sentiment.

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.