Workday (NASDAQ:WDAY) Stock Price Expected to Rise, BMO Capital Markets Analyst Says

Workday (NASDAQ:WDAY) had its target price lifted by equities research analysts at BMO Capital Markets from $182.00 to $230.00 in a note issued to investors on Friday,Benzinga reports. The firm currently has an “outperform” rating on the software maker’s stock. BMO Capital Markets’ price target indicates a potential upside of 18.82% from the stock’s previous close.

Several other brokerages have also recently commented on WDAY. Wells Fargo & Company boosted their target price on shares of Workday from $185.00 to $215.00 and gave the company an “overweight” rating in a research report on Wednesday, August 12th. TD Cowen reiterated a “hold” rating on shares of Workday in a research report on Thursday, August 20th. Wall Street Zen cut shares of Workday from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Guggenheim restated a “buy” rating and set a $275.00 price objective on shares of Workday in a research report on Friday, August 21st. Finally, Robert W. Baird upped their target price on Workday from $190.00 to $215.00 and gave the stock an “outperform” rating in a research note on Friday, August 14th. Twenty equities research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $198.86.

Workday Stock Performance

WDAY opened at $193.57 on Friday. The firm has a market cap of $47.81 billion, a P/E ratio of 60.49, a price-to-earnings-growth ratio of 2.03 and a beta of 1.08. Workday has a 52-week low of $110.36 and a 52-week high of $249.85. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.01 and a current ratio of 1.01. The business’s fifty day moving average is $155.95 and its 200-day moving average is $140.36.

Workday (NASDAQ:WDAY) last posted its quarterly earnings results on Thursday, August 27th. The software maker reported $2.75 EPS for the quarter, beating analysts’ consensus estimates of $2.61 by $0.14. Workday had a return on equity of 14.75% and a net margin of 8.60%.The business had revenue of $2.65 billion during the quarter, compared to the consensus estimate of $2.64 billion. During the same quarter in the previous year, the firm earned $2.21 earnings per share. Workday’s revenue for the quarter was up 12.8% compared to the same quarter last year. Sell-side analysts expect that Workday will post 5.38 EPS for the current fiscal year.

Insider Activity

In other news, insider Robert Enslin sold 5,374 shares of Workday stock in a transaction on Sunday, July 5th. The shares were sold at an average price of $134.90, for a total transaction of $724,952.60. Following the transaction, the insider owned 239,469 shares in the company, valued at approximately $32,304,368.10. The trade was a 2.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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, major shareholder David A. Duffield sold 107,500 shares of the business’s stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $122.04, for a total transaction of $13,119,300.00. Following the completion of the sale, the insider directly owned 105,049 shares in the company, valued at approximately $12,820,179.96. This represents a 50.58% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 875,020 shares of company stock valued at $113,938,503. Insiders own 18.64% of the company’s stock.

Institutional Investors Weigh In On Workday

Institutional investors have recently made changes to their positions in the stock. Rakuten Securities Inc. acquired a new position in shares of Workday in the second quarter worth approximately $25,000. Measured Wealth Private Client Group LLC acquired a new stake in Workday during the 3rd quarter valued at approximately $26,000. DT Investment Partners LLC acquired a new stake in Workday during the 4th quarter valued at approximately $27,000. LRI Investments LLC bought a new position in Workday during the 4th quarter worth approximately $29,000. Finally, JPL Wealth Management LLC bought a new position in Workday during the 3rd quarter worth approximately $30,000. Institutional investors own 89.81% of the company’s stock.

Workday News Roundup

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.

About Workday

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.