Zendesk (NYSE:ZEN) Lifted to Hold at Zacks Investment Research

Zacks Investment Research upgraded shares of Zendesk (NYSE:ZEN) from a sell rating to a hold rating in a research note released on Sunday morning, Zacks.com reports.

According to Zacks, “Zendesk, Inc. is a software development company. It provides a software-as-a-service, or SaaS, customer service platform. The Company offers applications that allow clients to manage incoming support requests from end customers from any Internet connected computer. It provides customer service through its platform in approximately 40 languages to customers in various industries, such as business technology, telecommunications, education/non-profit, consumer technology, media/entertainment, and retail/ecommerce. Zendesk, Inc. is headquartered in San Francisco, California. “

A number of other analysts also recently issued reports on ZEN. Goldman Sachs Group began coverage on Zendesk in a research note on Friday, June 7th. They issued a buy rating and a $105.00 target price for the company. Canaccord Genuity upped their price objective on shares of Zendesk from $100.00 to $105.00 and gave the company a buy rating in a report on Wednesday, July 31st. Compass Point initiated coverage on shares of Zendesk in a research report on Tuesday, August 13th. They set a buy rating and a $100.00 price objective for the company. Wedbush reaffirmed an outperform rating and set a $103.00 target price (up from $95.00) on shares of Zendesk in a research note on Thursday, May 23rd. Finally, Jefferies Financial Group boosted their target price on shares of Zendesk from $102.00 to $108.00 and gave the company a buy rating in a report on Wednesday, July 31st. Four equities research analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company’s stock. The company has a consensus rating of Buy and an average target price of $98.09.

ZEN opened at $75.83 on Friday. Zendesk has a twelve month low of $45.60 and a twelve month high of $94.89. The firm has a market capitalization of $8.69 billion, a PE ratio of -79.82 and a beta of 1.31. The company has a current ratio of 0.67, a quick ratio of 0.67 and a debt-to-equity ratio of 0.23. The firm’s 50-day moving average price is $80.92 and its 200 day moving average price is $84.47.

Zendesk (NYSE:ZEN) last released its quarterly earnings data on Tuesday, July 30th. The software maker reported $0.05 EPS for the quarter, beating the Zacks’ consensus estimate of ($0.28) by $0.33. Zendesk had a negative net margin of 23.70% and a negative return on equity of 27.44%. The company had revenue of $194.58 million during the quarter, compared to the consensus estimate of $192.47 million. During the same quarter in the prior year, the firm earned $0.03 EPS. Zendesk’s quarterly revenue was up 37.1% on a year-over-year basis. As a group, analysts predict that Zendesk will post -1.13 earnings per share for the current fiscal year.

In related news, insider Adrian Mcdermott sold 3,484 shares of the stock in a transaction dated Friday, September 6th. The stock was sold at an average price of $78.96, for a total transaction of $275,096.64. Following the transaction, the insider now owns 84,948 shares of the company’s stock, valued at approximately $6,707,494.08. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Mikkel Svane sold 50,000 shares of the stock in a transaction dated Thursday, August 15th. The stock was sold at an average price of $74.96, for a total value of $3,748,000.00. Following the transaction, the chief executive officer now directly owns 1,377,934 shares in the company, valued at approximately $103,289,932.64. The disclosure for this sale can be found here. Insiders sold a total of 257,380 shares of company stock valued at $20,202,336 in the last quarter. 4.60% of the stock is owned by insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ZEN. Capital Investment Advisory Services LLC boosted its stake in shares of Zendesk by 50.0% in the second quarter. Capital Investment Advisory Services LLC now owns 600 shares of the software maker’s stock valued at $56,000 after purchasing an additional 200 shares during the period. Advisory Services Network LLC purchased a new position in Zendesk in the second quarter valued at $80,000. FUKOKU MUTUAL LIFE INSURANCE Co acquired a new position in Zendesk during the 2nd quarter worth $89,000. Focused Wealth Management Inc acquired a new position in Zendesk during the 2nd quarter worth $127,000. Finally, Flagship Harbor Advisors LLC grew its stake in Zendesk by 30.7% during the 2nd quarter. Flagship Harbor Advisors LLC now owns 1,713 shares of the software maker’s stock worth $152,000 after purchasing an additional 402 shares in the last quarter. 93.66% of the stock is owned by institutional investors.

Zendesk Company Profile

Zendesk, Inc, a software development company, provides SaaS products for organizations. Its flagship product is Zendesk Support, a system for tracking, prioritizing, and solving customer support tickets across various channels. The company also offers Zendesk Chat, a live chat software to connect with customers on Websites, applications, and mobile devices; Zendesk Talk, a cloud-based call center software; Zendesk Guide, a knowledge base that powers customer self-service and support agent productivity; Zendesk Sell, a sales force automation software to enhance productivity, processes, and pipeline visibility for sales teams; Zendesk Connect that manages customer communication across channels; and Zendesk Explore, which provides analytics for businesses to measure and enhance the customer experience.

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