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WDAY - Major Add for Steve Mandel, Workday Insiders Sell

April 23, 2013 | About:
Sally Jones

Sally Jones

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Lone Pine Capital’s legendary hedge fund investor Steve Mandel increased his position in software company Workday Inc. (WDAY) by 259.24%, as of April 22, 2013, buying at an average price of $58.71 per share. After the trade, Steve Mandel owns 3,522,285 WDAY shares, making an impact of 0.93% on his equity portfolio. Mandel’s holding history shows that he first bought 980,494 shares at an average price of $51.2 with a gain of 14% in fourth quarter 2012.

His holding history:



Workday Inc. executive insiders sold shares this month:



Workday Inc. develops cloud-based applications and is among the first software developers to build global functionality into enterprise management software. Workday software products are used in approximately 219 countries for management of human resources, financials, and payroll.

Up 19% over 12 months, Workday Inc. (WDAY) is currently trading at $58.89, with a market cap of $9.48 billion, up from $1.14 billion, reported in October 2012 before Workday had completed an initial public offering of common stock resulting in net proceeds of around $684.6 million. Expanding internationally to large clients, Workday’s two largest clients are organizations of 200,000 and 300,000 people, respectively.

The company has a P/B ratio of 16.4 and a P/S ratio of 15.7233. GuruFocus has conducted a thorough checkup on the financials and performance of the company and found one warning sign, that the WDAY price of $58.89 is close to a one-year high of $63.16.

For fiscal year 2013 the company reported an increase of revenues by 103.6%, up from $134.4 million to $273.7 million. Additionally, the not-yet invoiced subscription-based software contracts represent a “backlog” of $434 million as of Jan. 31, 2013, and are not yet recorded as revenues. The company has an operating loss of $117,863 for the year ended January 2013, and an operating loss of $78,444 for the year ended January 2012.

1366736237862.pngWDAY data by GuruFocus.com

Underscoring the rapidly evolving market and high levels of competition, the company provided aggressive software maintenance in the last year, releasing three new software updates with hundreds of new features.

Workday Inc.’s Co-Founder and CO-CEO Dave Duffield, alongside Aneel Bhusri, explained that his product’s global functionality was all together new when he began the company in 2005: “When enterprise software emerged decades ago, the concept of global business had not yet evolved. Businesses were siloed by regions, and software was designed to support that approach."

With a consistently stellar customer service rating, the California company Workday Inc. is a “people-place,” also named “#1 Top Workplace in the Bay Area” and the “#1 Best Place to Work in the Bay Area” in two different surveys.

The Lone Pine Capital LLC's website is closed to the public, but according to GuruFocus research as of April 15, 2013, Steve Mandel’s portfolio has 52 stocks, 12 of them new, with a total value of $15.9 billion, and a quarter-over-quarter turnover of 26%.

Mandel’s other top buys, sells and holdings:



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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 2.9/5 (7 votes)

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