Here’s Why Workiva (WK) Fell In Q3

Mairs & Power, an investment advisor, released the “Mairs & Power Small Cap” third quarter 2024 investor letter. A copy of the letter can be downloaded here. Non-technology equities were the market leaders in the first quarter, but mega-cap technology companies made a strong comeback in the second quarter. The market expanded again in the most recent quarter as interest-rate and economically sensitive areas like Utilities, Industrials, and small-cap stocks outperformed. Year-to-date the fund is up 8.95% slightly underperforming the 9.33% return for the S&P Small Cap 600 Total Return (TR) benchmark and the 10.90% return for its peer group, the Morningstar U.S. Fund Small Blend. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Mairs & Power Small Cap Strategy highlighted stocks like Workiva Inc. (NYSE:WK), in the third quarter 2024 investor letter. Workiva Inc. (NYSE:WK) offers cloud-based reporting solutions. The one-month return of Workiva Inc. (NYSE:WK) was 23.21%, and its shares gained 2.97% of their value over the last 52 weeks. On November 25, 2024, Workiva Inc. (NYSE:WK) stock closed at $98.37 per share with a market capitalization of $5.449 billion.

Mairs & Power Small Cap Strategy stated the following regarding Workiva Inc. (NYSE:WK) in its Q3 2024 investor letter:

“Detracting from relative performance during the period was Workiva Inc. (NYSE:WK), with the software company’s peer group beginning to discuss slowing close rates on sales and Workiva’s ESG solutions may be feeling some of the recent ESG resistance in the press.”

A software engineer debugging a compliance code on a laptop in a modern office setting.

Workiva Inc. (NYSE:WK) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Workiva Inc. (NYSE:WK) at the end of the third quarter which was 19 in the previous quarter. Workiva Inc. (NYSE:WK) reported $185.6 millions of total revenue in the third quarter, an increase of 17% compared to Q3 2023. While we acknowledge the potential of Workiva Inc. (NYSE:WK) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Workiva Inc. (NYSE:WK) and shared TimesSquare Capital Management U.S. Small Cap Growth Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.