WDAY has pulled back to a historically bullish trendline
Workday Inc (NASDAQ:WDAY) recently hit a Feb. 26 record high of $311.28, before a sharp pullback on the heels of its fourth-quarter earnings report. Though the software name announced strong results, the company warned of macro concerns into 2025, pushing the stock to a 4% drop on Feb. 27 -- its largest percentage loss since September.
Today, WDAY is down 0.3% at $294.21, amid news that Morgan Stanley, which had been bullish on the stock, removed its position. Since the start of the year, Workday stock is up 6.9%.
It's worth noting that the recent dip has WDAY within one standard deviation of its 60-day moving average, a trendline with historically bullish implications. Per Schaeffer's Senior Quantitative Analyst Rocky White, the equity has seen five similar signals in the past three years, after which it was higher one month later 60% of the time, averaging a 4.9% gain.
Workday stock received no fewer than seven price-target hikes, and just one price-target cut after its recent earning report. Additional bull notes could lift the shares, as 11 of the 34 analysts in coverage carry a "hold" or worse rating on the equity.