Workday (NASDAQ:WDAY) Price Target Raised to $230.00

Workday (NASDAQ:WDAY) had its target price hoisted by BMO Capital Markets from $182.00 to $230.00 in a report issued on Friday morning, Marketbeat.com reports. BMO Capital Markets currently has an outperform rating on the software maker’s stock.

A number of other equities research analysts have also issued reports on the stock. William Blair reissued an “outperform” rating on shares of Workday in a report on Friday. TD Cowen reiterated a “hold” rating on shares of Workday in a report on Thursday, August 20th. Barclays boosted their target price on shares of Workday from $200.00 to $224.00 and gave the company an “overweight” rating in a report on Friday. Guggenheim restated a “buy” rating and set a $275.00 price target on shares of Workday in a report on Friday, August 21st. Finally, KeyCorp reaffirmed an “overweight” rating on shares of Workday in a research report on Friday, August 14th. Twenty equities research analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Workday has an average rating of “Hold” and a consensus target price of $206.00.

Workday Stock Performance

NASDAQ WDAY opened at $204.72 on Friday. The stock’s fifty day moving average is $157.71 and its two-hundred day moving average is $140.71. The firm has a market capitalization of $50.57 billion, a P/E ratio of 41.53, a price-to-earnings-growth ratio of 2.17 and a beta of 1.08. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.91 and a current ratio of 0.91. Workday has a fifty-two week low of $110.36 and a fifty-two week high of $249.85.

Workday (NASDAQ:WDAY) last issued its earnings results on Thursday, August 27th. The software maker reported $2.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.61 by $0.14. Workday had a return on equity of 20.95% and a net margin of 12.32%.The business had revenue of $2.65 billion during the quarter, compared to the consensus estimate of $2.64 billion. During the same period last year, the company earned $2.21 EPS. The company’s revenue for the quarter was up 12.8% on a year-over-year basis. On average, research analysts anticipate that Workday will post 5.39 earnings per share for the current year.

Insiders Place Their Bets

In other Workday news, CFO Zane Rowe sold 6,000 shares of Workday stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $143.70, for a total transaction of $862,200.00. Following the completion of the sale, the chief financial officer directly owned 288,460 shares in the company, valued at $41,451,702. This trade represents a 2.04% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at 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, insider Robert Enslin sold 5,374 shares of the business’s stock in a transaction that occurred 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 completion of the sale, the insider directly 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 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. Insiders sold a total of 875,020 shares of company stock valued at $113,938,503 over the last 90 days. 18.64% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the company. Strategic Investment Advisors MI lifted its stake in shares of Workday by 1.6% during the second quarter. Strategic Investment Advisors MI now owns 3,263 shares of the software maker’s stock worth $777,000 after purchasing an additional 50 shares in the last quarter. L2 Asset Management LLC raised its stake in shares of Workday by 7.8% in the 4th quarter. L2 Asset Management LLC now owns 1,079 shares of the software maker’s stock valued at $232,000 after purchasing an additional 78 shares in the last quarter. Oregon Public Employees Retirement Fund grew its stake in Workday by 0.3% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 24,798 shares of the software maker’s stock worth $5,326,000 after purchasing an additional 80 shares in the last quarter. Stevens Capital Management LP increased its holdings in Workday by 4.3% in the fourth quarter. Stevens Capital Management LP now owns 2,054 shares of the software maker’s stock valued at $441,000 after buying an additional 84 shares during the last quarter. Finally, Colonial Trust Co SC raised its stake in Workday by 45.8% during the fourth quarter. Colonial Trust Co SC now owns 280 shares of the software maker’s stock valued at $60,000 after buying an additional 88 shares in the last quarter. 89.81% of the stock is currently owned by institutional investors and hedge funds.

Workday News Roundup

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Workday reported fiscal Q2 revenue of $2.649 billion, up 12.8% year over year, while subscription revenue increased 13.9% to $2.471 billion. Adjusted EPS of $2.75 exceeded the $2.61 consensus estimate. Workday Announces Fiscal 2027 Second Quarter Financial Results
• Positive Sentiment: Profitability was a major bright spot: net income rose sharply to $632 million from $228 million a year earlier, and analysts cited subscription growth and expanding margins as reasons for increased price targets. WDAY Q2 Earnings Beat Estimates on Subscription Growth, Margin Gains
• Positive Sentiment: AI products accounted for more than one-quarter of new contract value, suggesting growing customer demand for Workday’s AI agents and supporting the company’s longer-term growth strategy. AI Products Accounted for More Than a Quarter of Workday’s New Q2 Contract Value
• Positive Sentiment: Workday authorized a substantial $4 billion share-repurchase program, potentially providing support for per-share results and signaling confidence in cash generation and valuation.
• Positive Sentiment: Several firms raised their targets after the report, including BMO Capital Markets and Needham to $230, KeyCorp to $215 and Monness to $218, with buy, overweight or outperform ratings.
• Neutral Sentiment: Analyst opinion remains divided. Some see AI momentum and margin expansion driving upside, while others believe the current valuation already reflects much of the improvement.
• Neutral Sentiment: Jim Cramer characterized the results as evidence that there is no broad SaaS-sector meltdown, supporting sentiment toward enterprise software stocks. Jim Cramer Says Workday Results Show No SaaS Meltdown in Sight
• Negative Sentiment: Workday’s fiscal 2027 revenue outlook of approximately $9.9 billion to $10.0 billion was below the roughly $10.7 billion analyst consensus, raising concerns about a potential slowdown and the risk of another guidance reduction. Workday’s outlook meets estimates despite AI demand
• Negative Sentiment: TD Cowen, Freedom Broker, Piper Sandler and DA Davidson maintained neutral or hold views, with targets ranging from $190 to $210—mostly indicating limited upside or downside from recent levels.

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.