How Workday Inc. (WDAY) Works From A Technical Perspective

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Workday Inc. (NASDAQ:WDAY) traded with an addition of $5.33 to close at $168.32 on Thursday, an upside of 3.27 percent. An average of 1,188,756 shares of common stock have been traded in the last five days. There was a fall of -$2.48 in the past week, and it reached a new high 1 time over the past 12 months. The last 20 days have seen an average of 2,068,524 shares traded, while the 50-day average volume stands at 2,276,704.

WDAY stock has increased by 12.21% in the last month. The company shares reached their 1-month lowest point of $155.50 on 11/30/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $128.72 and a high of $279.57 in 52 weeks. It has reached a new high 1 time so far this year and lost -40.34% or -$105.58 in price. In spite of this, the price is down -39.79% from the 52-week high.


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Insider Transactions

WDAY stock investors should be aware that Workday Inc. (WDAY) stock had its last reported insider trading activity 14 days ago on Dec 15. In this transaction, the insider spent $159,153. Co-President, Robinson Douglas A., disposed of 1,033 shares at a price of $176.05 on Dec 15. The insider now owns more than $181,865 worth of shares. Prior to that, 10% Owner DUFFIELD DAVID A went on to Sale 102,500 shares at $175.34 each on Dec 15. An amount of $17,972,720 was transacted.

Valuation Metrics

Workday Inc. (WDAY) stock’s beta is 1.27. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 7.09, the price-to-book (PB) ratio at 7.71, and the price-to-cash flow ratio at 26.71.

Financial Health

The quick ratio of Workday Inc. for the three months ended October 30 was 1.90, and the current ratio was 1.90, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.55 and a total debt to equity ratio of 0.55 for the quarter ending October 30. Its gross profit as reported stood at $3.71 billion compared to revenue of $5.14 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Workday Inc.’s return on assets was -2.60%.

Earnings Surprise

For the three-month period that ended October 30, Workday Inc. had $3.92 billion in cash and short-term investments compared to $2.97 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$74.72 million in the quarter, while revenues of -$64.16 million were grew 158.1%. The analyst consensus anticipated Workday Inc.’s latest quarter earnings to come in at $0.84 per share, but it turned out to be $0.99, a 17.90% surprise. For the quarter, EBITDA amounted to $110.36 million. Shareholders own equity worth $257.0 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Workday Inc. (WDAY) price momentum. RSI 9-day as of the close on 28 December was 52.00%, suggesting the stock is Neutral, with historical volatility in this time frame at 26.33%.

As of today, WDAY’s price is $164.85 -1.46% or -$2.48 from its 5-day moving average. WDAY is currently trading -0.18% lower than its 20-day SMA and +0.48% higher than its 100-day SMA. However, the stock’s current price level is +9.82% above the SMA50 and -24.31% below the SMA200.

The stochastic %K and %D were 17.00% and 15.80%, respectively, and the average true range (ATR) was 5.34. With the 14-day stochastic at 29.29% and the average true range at 5.85, the RSI (14) stands at 53.59%. The stock has reached -3.30 on the 9-day MACD Oscillator while the 14-day reading was at -5.77.

Analyst Ratings

Loop Capital downgraded Workday Inc. (NASDAQ: WDAY) to a a Hold rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for Workday Inc. (WDAY) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell WDAY, while 10 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 5 analysts, while 23 others rate it as a “buy”.

What is WDAY’s price target for the next 12 months?

Analysts predict a range of price targets between $142.00 and $245.00, with a median target of $204.00. Taking a look at these predictions, the average price target given by analysts for Workday Inc. (WDAY) stock is $203.91.

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