Market Overview

Workday Getting Worked Over

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Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Workday Inc (NYSE: WDAY) shares are trading lower by $10 at $82.49 in Wednesday's session. Despite posting better-than-expected Q1 EPS, along with higher revenue, the company issued lowered guidance for FY 2016.

The issue, which was approaching its high for the year ($95.17), reaching $93.92 in Tuesday's session, is much closer to its yearly low made in January at $76.36.

Related Link: Workday Earnings Reviewed By JMP Securities

The weak guidance did not dissuade JMP Securities to abandon the issue as the firm has maintained its Market Outperform rating and price target of $116.

After a $7.50 decline in premarket trading, it managed a brief pop to $85 before sellers flooded the issue once again. So far, it has reached $81.14 and is attempting to reclaim the $82 handle. That level coincides with its April 1 low at $81.39.

Wednesday's rout is taking place on heavier than average volume, as it has traded 5.8M shares compared to 20 day average of 1.6M with four hours remaining in the session.

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