Workday (NASDAQ:WDAY) shares rose 2.8% in pre-market trading to $190.93, outperforming broader US equity indices as investors continued to assess reported takeover interest from private-equity firm Silver Lake.
Reuters previously reported that Silver Lake had held discussions with Workday about a potential acquisition in recent months, citing people familiar with the matter. The report said there was no certainty that the discussions would result in a transaction.
Workday Announces $4 Billion Buyback
Workday subsequently launched a $4 billion share repurchase programme and scheduled its annual financial analyst day for October 13.
The company has also recently received several analyst rating and price-target changes.
Barclays raised its price target on Workday to $224 from $200 while maintaining an Overweight rating. Freedom Broker analyst Almas Almaganbetov lowered his rating to Hold from Buy but increased his price target to $200 from $180.
Workday reported fiscal second-quarter net income of $632 million, compared with $228 million in the same period a year earlier.
Shares Gain as Major US Indices Decline
Workday’s pre-market advance came as major US equity indices moved lower. The S&P 500 declined 0.8%, the Dow Jones fell 0.3% and the Nasdaq was down 1.9%.
Enterprise software stocks have recently been affected by investor assessments of the potential impact of artificial intelligence on established software businesses.
For Workday, investors are also monitoring the reported Silver Lake discussions alongside the company’s share repurchase programme, financial performance and upcoming analyst day. The reported acquisition talks remain uncertain, with no transaction guaranteed.
Workday stock price
