Plato Investment Management Ltd Acquires Shares of 9,163 Workday, Inc. $WDAY

Plato Investment Management Ltd acquired a new stake in Workday, Inc. (NASDAQ:WDAY) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 9,163 shares of the software maker’s stock, valued at approximately $1,115,000.

A number of other hedge funds have also recently modified their holdings of the stock. Auto Owners Insurance Co boosted its position in Workday by 25,412.8% in the 4th quarter. Auto Owners Insurance Co now owns 10,230,616 shares of the software maker’s stock worth $2,197,332,000 after purchasing an additional 10,190,516 shares in the last quarter. Vanguard Group Inc. increased its holdings in shares of Workday by 14.7% during the 4th quarter. Vanguard Group Inc. now owns 25,009,288 shares of the software maker’s stock valued at $5,371,495,000 after purchasing an additional 3,210,232 shares in the last quarter. Janus Henderson Group PLC lifted its stake in shares of Workday by 101.4% in the 4th quarter. Janus Henderson Group PLC now owns 5,017,905 shares of the software maker’s stock valued at $1,077,537,000 after purchasing an additional 2,525,821 shares during the period. Norges Bank acquired a new position in shares of Workday in the 4th quarter valued at $448,804,000. Finally, First Eagle Investment Management LLC boosted its holdings in Workday by 87.8% during the fourth quarter. First Eagle Investment Management LLC now owns 4,338,773 shares of the software maker’s stock worth $931,882,000 after buying an additional 2,028,085 shares in the last quarter. Hedge funds and other institutional investors own 89.81% of the company’s stock.

Insider Buying and Selling

In other news, CAO Mark S. Garfield sold 918 shares of Workday stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $142.19, for a total value of $130,530.42. Following the sale, the chief accounting officer directly owned 73,718 shares of the company’s stock, valued at $10,481,962.42. The trade was a 1.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder David A. Duffield sold 107,500 shares of the business’s stock in a transaction that occurred on Thursday, July 9th. The stock was sold at an average price of $136.74, for a total value of $14,699,550.00. Following the sale, the insider owned 105,049 shares of the company’s stock, valued at $14,364,400.26. The trade was a 50.58% 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. Insiders sold a total of 875,020 shares of company stock worth $113,938,503 in the last quarter. 18.64% of the stock is owned by insiders.

Wall Street Analyst Weigh In

Several research firms recently commented on WDAY. CLSA started coverage on shares of Workday in a research report on Monday, July 20th. They set an “underperform” rating and a $92.00 price target on the stock. Robert W. Baird increased their target price on shares of Workday from $190.00 to $215.00 and gave the stock an “outperform” rating in a research note on Friday, August 14th. Wells Fargo & Company raised their target price on Workday from $185.00 to $215.00 and gave the company an “overweight” rating in a research report on Wednesday, August 12th. Wall Street Zen lowered Workday from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Finally, Jefferies Financial Group upped their price target on Workday from $140.00 to $205.00 and gave the stock a “hold” rating in a report on Friday. One analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, fifteen have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, Workday presently has a consensus rating of “Moderate Buy” and a consensus price target of $187.36.

Workday News Roundup

Here are the key news stories impacting Workday this week:

• Positive Sentiment: Reports of Silver Lake’s possible approach continue to support Workday’s valuation and have renewed expectations that software mergers and acquisitions could accelerate. KeyBanc cited private-equity interest, available capital and pressure to consolidate as potential catalysts for broader technology deal activity. Analyst lists 3 reasons why tech M&A may accelerate
• Positive Sentiment: Strong demand for Workday-related services is providing a supporting signal for the company’s ecosystem. Kainos said its Workday and digital divisions are sustaining double-digit growth and expects annual revenue and adjusted profit to exceed market forecasts. Kainos signals profit upgrade
• Neutral Sentiment: Workday’s standalone investment case remains under review. Analysts note that revenue growth is continuing, but investors increasingly want evidence that the company can deliver attractive long-term returns even if Silver Lake does not proceed with a buyout. Where Will Workday Stock Be in 5 Years If Silver Lake Doesn’t Buy It?
• Neutral Sentiment: Piper Sandler reiterated its neutral rating, while another analyst report discussed Workday alongside other technology companies. A separate price-target report raised its target to $215, indicating some analysts still see upside, although the target remains below the levels implied by a full takeover premium. Workday Price Target Raised
• Negative Sentiment: Deutsche Bank downgraded Workday to Hold, and BTIG cut its rating from Buy to Neutral. The firms cited valuation risk after the stock’s substantial rally and argued that current prices assume stronger growth and a likely acquisition. Deutsche Bank Just Downgraded Workday Stock
• Negative Sentiment: UBS analysts expressed skepticism that Silver Lake will ultimately acquire Workday, reducing confidence in the takeover-driven rally. The combination of deal uncertainty and elevated growth expectations has prompted investors to take profits and contributed to the recent decline in WDAY. Why This Analyst Is Skeptical Of Workday-Silver Lake Deal

Workday Stock Performance

WDAY opened at $190.63 on Wednesday. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.30. The company has a market cap of $47.09 billion, a price-to-earnings ratio of 59.57, a PEG ratio of 2.11 and a beta of 1.08. Workday, Inc. has a 52-week low of $110.36 and a 52-week high of $249.85. The firm’s fifty day simple moving average is $146.36 and its two-hundred day simple moving average is $138.97.

Workday (NASDAQ:WDAY) last released its earnings results on Thursday, May 21st. The software maker reported $2.66 EPS for the quarter, topping analysts’ consensus estimates 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 analysts’ expectations of $2.52 billion. During the same quarter in the previous year, the company earned $2.23 earnings per share. The company’s quarterly revenue was up 13.5% on a year-over-year basis. Equities analysts anticipate that Workday, Inc. will post 5.38 earnings per share for the current fiscal year.

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.