Workday Inc. (WDAY) Outlook Starting To Look Brighter?


The Vanguard Group, Inc. has recently announced that it has increased stake in Workday Inc. (NASDAQ:WDAY) by 4.16%. After grabbing 10.27 million shares, the institutional investor is now in possession of 0.41 million shares of the Technology Company. The new investment brought the stake of investor firm to 5.90% having worth around $1.86 billion. Moreover, Baillie Gifford & Co. increased its share by 1.56 million to have a control over 8.61 million shares. And Wellington Management Co. LLP raised its holdings to 1.35 million shares by acquiring 8.47 million shares or 4.87% of the stake.

Workday Inc. (WDAY) concluded trading on 08/26/20 at a closing price of $213.62, with 6.14 million shares of worth about $1.31 billion changed hands on the day. Weekly performance of the stock remained positive as price took a surge of 11.73% during that period and on Wednesday the price saw a gain of about 10.10%. Currently the company’s common shares owned by public are about 232.94M shares, out of which, 172.25M shares are available for trading.

A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 33 analysts are covering the WDAY stock and their offered price forecasts bring an average price target of $195.48. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $255.00 and could fall to a lowest price of $130.00. Analysts also issued an outlook of 2.40 for the Workday Inc. stock for next 12 months. The stock’s current price level is -13.08% below of average price target set by the analysts, while a dip to estimated low would result in loss of -64.32 for the stock. However, touching the estimated high of $255.00 would mean a gain of 16.23% for the stock.

According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 237 times over the past 12 months. They bought 4,725,287 shares in 35 of the transactions. In 202 selling transactions, insiders dumped 4,825,327 shares.

Vanguard Total Stock Market Index, T Rowe Price Blue Chip Growth Fun, and Morgan Stanley Invt. Fds. – US Ad are the top 3 mutual funds which are holding stakes in Workday Inc. Vanguard Total Stock Market Index is currently holding 4.95 million shares of worth totaling $895.52 million. The company recently came selling 8068.0 shares which brought its stake up to 2.85% of the company’s outstanding shares. T Rowe Price Blue Chip Growth Fun sold -0.64 million shares, after which its hold over company’s outstanding shares shrunk to 2.12%, leaving 3.68 million shares with the mutual fund that have a worth of about $666.21 million. Morgan Stanley Invt. Fds. – US Ad, after buying 2.61 million shares, have now control over 1.50% of the stake in the company. It holds 0.38 million shares of worth $473.0 million.

Workday Inc. (NASDAQ: WDAY) started trading at $200.95, above $6.92 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $213.62, or with a gain of 10.10%. Stock saw a price change of 11.73% in past 5 days and over the past one month there was a price change of 18.43%. Year-to-date (YTD), WDAY shares are showing a performance of 29.90% which increased to 13.42% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $107.75 but also hit the highest price of $202.00 during that period. While comparing its average daily trading volume of 1.79 million shares, we see that about 6.14 million changed hands on the day. The stock is currently trading 15.58% above its 20-day simple moving average (SMA20), while that difference is up 14.79% for SMA50 and it goes to 26.03% higher than SMA200.

The Vanguard Group, Inc. acquired 10.27 million shares of Workday Inc. having value of about $1.86 billion. Data submitted at the U.S SEC by The Vanguard Group, Inc. revealed that the firm now holds 0.41 million shares in the company valued at close to $87595521.86, or have control over 4.16% stake in the company. Workday Inc. (NASDAQ: WDAY) currently have 232.94M outstanding shares and institutions hold larger chunk of about 93.90% of that. Holding of mutual funds in the company is about 45.70% while other institutional holders and individual stake holders have control over 47.98% and 2.82% of the stake respectively.

The stock has a current market capitalization of $50.64B and its 3Y-monthly beta is at 1.44. It has posted earnings per share of -$2.28 in the same period. It has Quick Ratio of 1.20 while making debt-to-equity ratio of 0.68. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for WDAY, volatility over the week remained 3.33% while standing at 2.88% over the month.

Analysts are in expectations that Workday Inc. (WDAY) stock would likely to be making an EPS of $0.66 in the current quarter, while forecast for next quarter ESPS is $0.6 and it is $2.76 for next year. For the current quarter EPS, analysts have given the company a lowest target $0.53 which is $0.71 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $0.44 in the same quarter a year ago. Stock’s fiscal year EPS is expected to drop by -9.70% while it is estimated to increase by 21.94% in next year. EPS is likely to grow at an annualized rate of 21.75% for next 5-years, compared to annual growth of -9.40% made by the stock over the past 5-years.

Analysts at 33 brokerage firms have issued recommendations for the Workday Inc. (WDAY)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.40. Out of those 33 Wall Street analysts, 14 recommended a “Buy” rating, while 13 were in favor recommending the stock as a “Hold” and 3 analyst recommended the stock as “Sell”.

Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Loop Capital on August 21, 2020 offering a Sell rating for the stock and assigned a target price of $140 to it. Coverage by Wells Fargo stated Workday Inc. (WDAY) stock as an Equal weight in their note to investors on May 28, 2020, suggesting a price target of $195 for the stock. On May 28, 2020, Wedbush Reiterated their recommendations, while on May 28, 2020, Stifel Reiterated their ratings for the stock with a price target of $190. Stock get an Outperform rating from RBC Capital Mkts on May 28, 2020.


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