Is Workday Inc (NYSE:WDAY) a buy?
If you were to ask many investors, hedge funds are assumed to be overrated, old financial vehicles of a period lost to current times. Although there are In excess of 8,000 hedge funds in operation today, Insider Monkey aim at the moguls of this club, about 525 funds. It is assumed that this group controls the majority of the hedge fund industry’s total capital, and by tracking their highest performing investments, we’ve found a few investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).
Equally as necessary, positive insider trading sentiment is another way to analyze the investments you’re interested in. As the old adage goes: there are lots of motivations for an insider to cut shares of his or her company, but just one, very clear reason why they would behave bullishly. Plenty of empirical studies have demonstrated the impressive potential of this method if “monkeys” understand where to look (learn more here).
Furthermore, we’re going to analyze the newest info for Workday Inc (NYSE:WDAY).
What does the smart money think about Workday Inc (NYSE:WDAY)?
At Q2’s end, a total of 28 of the hedge funds we track were long in this stock, a change of 12% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their stakes considerably.
When using filings from the hedgies we track, Stephen Mandel’s Lone Pine Capital had the largest position in Workday Inc (NYSE:WDAY), worth close to $225.7 million, comprising 1.1% of its total 13F portfolio. Sitting at the No. 2 spot is David Goel and Paul Ferri of Matrix Capital Management, with a $128.2 million position; 13.5% of its 13F portfolio is allocated to the company. Other peers that are bullish include John Griffin’s Blue Ridge Capital, Eric Chen’s Antipodean Advisors and Christopher Lord’s Criterion Capital.
With a general bullishness amongst the titans, certain money managers were leading the bulls’ herd. Lone Pine Capital, managed by Stephen Mandel, created the most valuable position in Workday Inc (NYSE:WDAY). Lone Pine Capital had 225.7 million invested in the company at the end of the quarter. David Goel and Paul Ferri’s Matrix Capital Management also initiated a $128.2 million position during the quarter. The other funds with brand new WDAY positions are John Griffin’s Blue Ridge Capital, Eric Chen’s Antipodean Advisors, and Christopher Lord’s Criterion Capital.
How are insiders trading Workday Inc (NYSE:WDAY)?
Legal insider trading, particularly when it’s bullish, is most useful when the company we’re looking at has experienced transactions within the past 180 days. Over the last half-year time period, Workday Inc (NYSE:WDAY) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators 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) | 40 | 0 | 0 |
| F5 Networks, Inc. (NASDAQ:FFIV) | 28 | 0 | 0 |
| CA, Inc. (NASDAQ:CA) | 28 | 0 | 0 |
| Catamaran Corp (USA) (NASDAQ:CTRX) | 35 | 0 | 0 |
| Red Hat, Inc. (NYSE:RHT) | 30 | 0 | 0 |
Using the results shown by Insider Monkey’s tactics, regular investors should always pay attention to hedge fund and insider trading sentiment, and Workday Inc (NYSE:WDAY) applies perfectly to this mantra.
