Views of Wall Street’s Leading Experts on Workday Inc.

Workday Inc. (NASDAQ: WDAY) stock jumped 1.36% on Friday to $162.54 against a previous-day closing price of $160.36. With 1.66 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.28 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $162.59 whereas the lowest price it dropped to was $158.50. The 52-week range on WDAY shows that it touched its highest point at $307.81 and its lowest point at $134.10 during that stretch. It currently has a 1-year price target of $222.28. Beta for the stock currently stands at 1.39.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of WDAY was up-trending over the past week, with a rise of 6.37%, but this was up by 11.37% over a month. Three-month performance dropped to -21.77% while six-month performance fell -33.07%. The stock lost -30.01% in the past year, while it has lost -40.50% so far this year. A look at the trailing 12-month EPS for WDAY yields -0.12 with Next year EPS estimates of 4.52. For the next quarter, that number is 0.81. This implies an EPS growth rate of 111.90% for this year and 31.58% for next year. EPS is expected to grow by 15.10% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 15.70%.

Float and Shares Shorts:

At present, 251.74 million WDAY shares are outstanding with a float of 196.62 million shares on hand for trading. On Jul 14, 2022, short shares totaled 8.81 million, which was 3.47% higher than short shares on Jun 14, 2022. In addition to Mr. Aneel Bhusri as the firm’s Co-Founder, Co-CEO & Chairman, Mr. Luciano Fernandez Gomez serves as its Co-CEO & Director.

Institutional Ownership:

Through their ownership of 92.36% of WDAY’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 46.04% of WDAY, in contrast to 45.17% held by mutual funds. Shares owned by individuals account for 2.81%. As the largest shareholder in WDAY with 5.91% of the stake, The Vanguard Group, Inc. holds 11,754,939 shares worth 11,754,939. A second-largest stockholder of WDAY, Baillie Gifford & Co., holds 7,751,747 shares, controlling over 3.90% of the firm’s shares. Wellington Management Co. LLP is the third largest shareholder in WDAY, holding 7,086,696 shares or 3.56% stake. With a 2.94% stake in WDAY, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 5,858,756 shares are owned by the mutual fund manager. The Vanguard Wellington Fund, which owns about 1.48% of WDAY stock, is the second-largest Mutual Fund holder. It holds 2,937,883 shares valued at 410.07 million. Invesco QQQ Trust holds 1.45% of the stake in WDAY, owning 2,882,371 shares worth 402.32 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Apr 29, 2022, WDAY reported revenue of $1.43B and operating income of -$72.84M. Over the past year, revenue came in at $5.40B while operating income stood at -$150.98M. It generated -$102.17M net income for the quarter, which came to -$26.28M over the last twelve months. The EBITDA in the recently reported quarter was $10.86M and diluted EPS was -$0.41. EBITDA for the full year was $348.09M.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for WDAY since 34 analysts follow the stock currently. There are 26 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 5 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With WDAY analysts setting a high price target of $310.00 and a low target of $160.00, the average target price over the next 12 months is $215.94. Based on these targets, WDAY could surge 90.72% to reach the target high and fall by -1.56% to reach the target low. Reaching the average price target will result in a growth of 32.85% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. WDAY will report FY 2023 earnings on 02/27/2023. Analysts have provided yearly estimates in a range of $3.97 being high and $3.04 being low. For WDAY, this leads to a yearly average estimate of $3.43. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Workday Inc. surprised analysts by -$0.02 when it reported $0.83 EPS against a consensus estimate of $0.85. The surprise factor in the prior quarter was $0.07. Based on analyst estimates, the high estimate for the next quarter is $0.90 and the low estimate is $0.66. The average estimate for the next quarter is thus $0.80.

Summary of Insider Activity:

Insiders traded WDAY stock several times over the past three months with 12 Buys and 10 Sells. In these transactions, 32,438 shares were bought while 28,867 shares were sold. The number of buy transactions has increased to 21 while that of sell transactions has risen to 193 over the past year. The total number of shares bought during that period was 462,838 while 664,118 shares were sold.

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