Sentiment Surrounding Workday Stock Spikes After Earnings

No less than 10 analysts lifted their price targets

Deputy Editor
Aug 27, 2021 at 10:15 AM
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The shares of cloud software concern Workday Inc (NASDAQ:WDAY) are on the rise this morning, last seen up 8.6% at $267.61, following a blowout earnings report. The firm posted profits of $1.23 for its second quarter after the close last night, easily topping analysts' estimates, while its revenue also bested analysts' expectations. Workday's subscriber revenue growth, meanwhile, grew by 19.5%, leading the company to hike its guidance for the year.

Analysts are responding in turn. No less than 10 analysts lifted their price targets, the highest coming from Stifel to $320 from $275. Sentiment surrounding WDAY was already strong heading into today, with 20 of the 24 in coverage calling WDAY a "buy" or better. Meanwhile, the 12-month consensus price target of $295.88 is a 19.9% premium to last night's close. 

Options volume has reached a fever pitch, already running in the top percentile of its 12-month range. So far, 32,000 calls and 9,575 puts have exchanged hands -- 45 times the intraday average. The weekly 8/27 275-strike call in the most popular, followed by the 270-strike call in the same series. Positions are being opened at both, suggesting these traders are expecting even more upside by the time these contracts expire this evening. 

WDAY has certainly been on a roll lately, set to string together its eighth straight win as it heads for its biggest one-day jump since March. The stock recently championed its year-to-date breakeven, as well as its 100-day moving average, which has kept a tight lid on shares since late April. Year-over-year WDAY is up 25.6%. 

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