Shares of Workday Inc. are rising Wednesday after activist investor Elliott Investment Management revealed a $2 billion stake in the human resources technology firm, signaling strong confidence in recent moves.

What To Know: Workday stock traded up to $240 after Elliott announced an investment of more than $2 billion and said it has been collaborating with the company. Shares were up about 7% at last check, according to Benzinga Pro.

Elliott believes Workday has industry-leading growth potential, best-in-class customer retention and a proven management team. The activist applauded the turnaround progress the executive team has made in recent years.

“We are pleased with our dialogue with the team and believe the plan announced at today’s Financial Analyst Day represents a significant enhancement of Workday’s operating model and capital allocation framework,” Elliott said in a statement.

“We believe this multi-year plan will drive substantial long-term value creation for Workday shareholders, and we look forward to continued collaboration with the company.”

Following the analyst day and investment announcement from Elliott, several analysts reiterated positive ratings on Workday stock and raised price targets. Two firms — Piper Sandler and Guggenheim — also upgraded the stock. Wednesday’s price target adjustments range from $235 to $340.

Workday also announced Wednesday morning that its board authorized an additional $4 billion in share repurchases on top of the $1.2 billion remaining on its buyback. The company noted that it plans to repurchase approximately $5 billion of its common stock through fiscal 2027.

WDAY Price Action: Workday shares were up 6.81% at $234 the time of publication on Wednesday, according to Benzinga Pro.

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