The stock of Workday Inc. (NASDAQ:WDAY) decreased by -$1.41 on Friday to finish at $226.46, down -0.62 percent. The last five days have seen an average of 1,177,280 shares of common stock traded. 24 times new highs were reached in the current year, with a gain of $59.13. The average number of shares traded over the last 20 days was 1,672,600, while the average volume over the last 50 days totaled 1,850,560.
WDAY stock appreciated 3.04% since last month. On 07/12/23, the company’s shares reached a one-month low of $218.33. The stock touched a high of $240.18 on 08/01/23, after rallying from a low of $128.72 in 52 weeks. The price of WDAY stock has risen by 35.34% or $59.13 this year, reaching a new high 24 times. Still, the stock price is down -5.71% from the 52-week high.
Insider Transactions
WDAY stock investors should be aware that Workday Inc. (WDAY) stock had its last reported insider trading activity 39 days ago on Jul 06. On Jul 06, Co-President Chakraborty Sayan sold 4,917 shares at $218.81 each. This transaction resulted in the insider making $1,075,886. On Jul 05, Bozzini James sold 4,941 shares at a price of US$221.43. After the transaction, the insider now owns 139,118 shares. Chief Legal Officer & Secty Sauer Richard Harry had earlier sold 4,223 shares on Jul 05 for $221.43 a share. The transaction was completed for $935,114.
Valuation Metrics
Beta for the stock is 1.24. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 9.18, the price-to-book (PB) ratio of 9.86, and the price-to-cash flow ratio of 52.96.
Financial Health
For the three months ended April 29, Workday Inc.’s quick ratio was 1.90, while its current ratio was 1.90, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending April 29 is 0.50, and the total debt to equity ratio is 0.50. As far as profitability goes, gross margin for the trailing twelve months is 73.20% percent. Workday Inc.’s EBITDA margin for the year ended April 29 was 3.49%, whereas its operating margin stood at -2.60% for the same period. Based on annual data, it had gross profit of $4.5 billion and revenue of $6.22 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. WDAY’s return on assets (ROA) during the last 12 months has been -2.00%. There was a -3.80% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -4.80%.
Earnings Surprise
According to Workday Inc.’s quarterly financial report for the quarter that ended April 29, it had $2.98 billion in total debt versus $4.89 billion in cash and short-term investments. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $1.68 billion, while revenues rose by 14.82% to $569.24 million. It was predicted that Workday Inc.’s quarterly earnings would be $1.31, but it ended up being $1.12, beating the consensus by 17.00%. EBITDA was $99.53 million for the quarter. At the end of Workday Inc.’s most recent quarter ended April 29, its liabilities totaled 7.31 billion, while its total debt was $3.25 billion. Equity owned by shareholders amounts to $261.0 million.
Technical Picture
Here’s a quick look at Workday Inc.’s (WDAY) price momentum from a technical perspective. As of 11 August, the RSI 9-day stood at 45.71%, suggesting the stock is Neutral, with a 28.95% historical volatility rate.
The stochastic %K and %D were 25.85% and 32.28% respectively, while the average true range (ATR) was 5.87. Based on the 14-day stochastic reading of 19.44%, the RSI (14) reading is 49.59%. On the 9-day MACD Oscillator, the stock is at -3.31, and the 14-day reading is at -4.00.
Analyst Ratings
In its analyst report released on June 28, 2023, RBC Capital Mkts began covering Workday Inc. (NASDAQ: WDAY). The stock was rated as an Outperform by the brokerage firm. Analysts have assigned Workday Inc. (WDAY) an Overweight rating. WDAY is a stock that is recommended for selling by 1 brokerage firm, while 10 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 5 rates it overweight and 22 others recommend it as a buy.
What is WDAY’s price target for the next 12 months?
The current consensus forecast for the stock is between $142.00 and $290.00, with a median target price of $243.00. In analyzing these forecasts, the average price target given by analysts for Workday Inc. (WDAY) is $240.38.
