Is Workday Inc (NYSE:WDAY) the right investment to pursue these days? The best stock pickers are getting more optimistic, as the number of long hedge fund bets inched up by eight lately.
According to Brian Pacampara of the Motley Fool, Workday’s “stock has slumped in recent months on concerns over slowing growth, but a better-than-expected Q4 — adjusted loss of $0.12 per share beat Wall Street by $0.05 on a revenue spike of 76% — coupled with upside guidance is quickly easing those worries. In fact, subscription revenue surged 82% year over year, suggesting that the company’s new product initiatives are quickly gaining traction.”
Keeping this in mind, let’s take a peek at the recent action encompassing Workday Inc (NYSE:WDAY).
How have hedgies been trading Workday Inc (NYSE:WDAY)?
At Q3′s end, a total of 36 of the hedge funds the hedge funds experts at Insider Monkey track held long positions in this stock, a change of 29 percent from the second quarter. With hedge funds’ sentiment swirling, there exists a select group of key hedge fund managers who were upping their stakes considerably.
According to hedge fund intelligence website Insider Monkey, Lone Pine Capital, managed by Stephen Mandel, holds the largest position in Workday Inc (NYSE:WDAY). Lone Pine Capital has a $285.1 million position in the stock, comprising 1.3 percent of its 13F portfolio. Coming in second is Matrix Capital Management, led by David Goel and Paul Ferri, holding a $161.9 million position; the fund has 13.5 percent of its 13F portfolio invested in the stock. Other hedge funds that hold long positions encompass Alan Fournier’s Pennant Capital Management, John Griffin’s Blue Ridge Capital and Eric Chen’s Antipodean Advisors.
With a general bullishness amongst the heavyweights, specific money managers were breaking ground themselves. Pennant Capital Management, managed by Alan Fournier, initiated the most valuable position in Workday Inc (NYSE:WDAY). Pennant Capital Management had 127.8 million invested in the company at the end of the quarter. Andreas Halvorsen’s Viking Global also made a $32.6 million investment in the stock during the quarter. The other funds with brand new WDAY positions are John Thaler’s JAT Capital Management, Joe DiMenna’s ZWEIG DIMENNA PARTNERS, and Andrew Sandler’s Sandler Capital Management.
What do corporate executives and insiders think about Workday Inc (NYSE:WDAY)?
Bullish insider trading is particularly usable when the company we’re looking at has experienced transactions within the past six months. Over the last half-year time period, Workday Inc (NYSE:WDAY) has experienced zero unique insiders buying, and eight insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Workday Inc (NYSE:WDAY). These stocks are BMC Software, Inc. (NASDAQ:BMC), F5 Networks, Inc. (NASDAQ:FFIV), CA, Inc. (NASDAQ:CA), Catamaran Corp (USA) (NASDAQ:CTRX), and Red Hat Inc. (NYSE:RHT). This group of stocks belong to the application software industry and their market caps resemble WDAY’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|BMC Software, Inc. (NASDAQ:BMC)||1||0||11|
|F5 Networks, Inc. (NASDAQ:FFIV)||29||0||8|
|CA, Inc. (NASDAQ:CA)||17||0||5|
|Catamaran Corp (USA) (NASDAQ:CTRX)||33||0||0|
|Red Hat Inc. (NYSE:RHT)||33||0||5|
As the chart above indicates, among the hedge funds Insider Monkey tracks, Workday Inc, Catamaran Corp, and Red Hat Inc. are roughly as widely held.