Wells Fargo Raises Workday Price Target to $330.00

On December 9, 2024, Wells Fargo & Company announced an increase in the price target for Workday, Inc. (NASDAQ: WDAY), raising it from $300.00 to $330.00. This decision was detailed in a research report released that same day, emphasizing an overweight rating on the software maker's stock.

In recent times, various equity research analysts have provided their insights regarding Workday's stock. For instance, on August 23, DA Davidson adjusted their target price, boosting it from $255.00 to $270.00 while maintaining a "neutral" rating. Furthermore, Barclays made a downward adjustment to their price target for Workday, bringing it down from $314.00 to $305.00, still retaining an "overweight" rating as of November 27. On the other hand, JMP Securities reaffirmed a "market outperform" status, setting a target price of $315.00 in a report dated September 19. Bank of America also revised their target down from $310.00 to $285.00, marking a "buy" rating in their note dated November 27. Lastly, Oppenheimer reiterated an "outperform" rating, assigning a target price of $300.00 in a recent update on December 3. Collectively, one analyst has given a sell rating, eight analysts have offered hold ratings, while twenty analysts have provided buy ratings for the stock. Based on data from MarketBeat, the average price target stands at approximately $289.21, alongside a consensus rating of "Moderate Buy."

Workday Stock Performance

On the day following Wells Fargo's announcement, Workday shares opened at $279.91. Presently, the company carries a debt-to-equity ratio of 0.35, along with a quick and current ratio of 2.05 each. Workday's market capitalization is around $74.18 billion, and its price-to-earnings ratio is noted at 46.42, while it has a PEG ratio of 4.91 and a beta of 1.34. Over the past 52 weeks, the stock has seen a low of $199.81 and a high of $311.28. Also noteworthy are its moving averages, with the 50-day average at $251.13 and the 200-day average at $237.53.

Earnings Report Highlights

Workday released its most recent earnings report on November 26, highlighting earnings of $1.89 per share for the quarter, which surpassed analyst expectations of $1.76 by $0.13. The company reported revenues of $2.16 billion, exceeding analyst predictions of $2.13 billion. Additionally, Workday achieved a return on equity of 6.13% and a net margin of 19.86%. Compared to the previous year, quarterly revenues showed a robust increase of 15.8%. For the current fiscal year, research analysts project an earnings per share (EPS) of approximately 2.58.

Insider Activity

In other developments related to Workday, Director Wayne A.I. Frederick sold 1,828 shares of the company on October 11 at an average price of $241.85, gathering a total of $442,101.80. Following this transaction, Frederick retains 8,674 shares, valued at approximately $2,097,806.90. This trade marked a 17.41% reduction in his holdings. Furthermore, major shareholder David A. Duffield sold 70,003 shares on December 2, with an average transaction price of $251.20, totaling $17,584,753.60. Duffield's remaining stake amounts to 102,997 shares, with a valuation of $25,872,846.40. Over the past quarter, a total of 361,463 shares have been sold by insiders, representing a value of around $88,422,088, with insiders holding about 20.00% of the company's stock.

Institutional Investment Overview

In recent months, several hedge funds and institutional investors have altered their positions in Workday. For example, Capital Performance Advisors LLP acquired a new stake in Workday valued at roughly $26,000 during the third quarter. Similarly, Meeder Asset Management Inc. raised its holdings by 42.2%, now owning 145 shares valued at $35,000 after adding 43 shares recently. True Wealth Design LLC remarkably increased its stake by 4,766.7%, now holding 146 shares worth $36,000 after buying an extra 143 shares. New Millennium Group LLC raised its investment by 177.4% during the same period, currently owning 147 shares at $36,000. Finally, SouthState Corp significantly upped its holdings by 614.3%, now owning 150 shares valued at $34,000. Overall, 89.81% of Workday stock is currently held by institutional investors.

About Workday

Workday, Inc. specializes in providing cloud-based enterprise applications both nationally and internationally. The company's offerings assist clients in planning, executing, analyzing, and integrating with other applications to manage their business efficiently. Workday's applications include a comprehensive suite for financial management, enabling companies to oversee their accounting records, manage financial operations, enhance financial consolidation and insights, and facilitate effective internal control while ensuring consistency across finance operations.

Workday, WellsFargo, Stock