Zendesk (NYSE:ZEN) Earns “Hold” Rating from Zacks Investment Research

Zacks Investment Research reiterated their hold rating on shares of Zendesk (NYSE:ZEN) in a report released on Saturday, Zacks.com reports. They currently have a $82.00 target price on the software maker’s stock.

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. “

Several other research firms have also commented on ZEN. Royal Bank of Canada lowered their target price on Zendesk from $106.00 to $100.00 and set an outperform rating for the company in a report on Tuesday, October 15th. Jefferies Financial Group upped their target price on Zendesk from $102.00 to $108.00 and gave the company a buy rating in a report on Wednesday, July 31st. KeyCorp reaffirmed a buy rating and set a $108.00 target price (up from $102.00) on shares of Zendesk in a report on Tuesday, July 30th. Stifel Nicolaus set a $92.00 target price on Zendesk and gave the company a hold rating in a report on Wednesday, July 31st. Finally, ValuEngine lowered Zendesk from a strong-buy rating to a buy rating in a report on Wednesday, October 2nd. Four research analysts have rated the stock with a hold rating and eighteen have given a buy rating to the stock. The stock presently has an average rating of Buy and an average target price of $95.99.

NYSE:ZEN opened at $63.73 on Friday. The firm has a market capitalization of $7.15 billion, a PE ratio of -67.08 and a beta of 1.22. The stock has a 50 day moving average of $73.40 and a 200-day moving average of $82.64. Zendesk has a 52 week low of $45.60 and a 52 week high of $94.89. The company has a current ratio of 0.67, a quick ratio of 0.67 and a debt-to-equity ratio of 0.23.

Zendesk (NYSE:ZEN) last posted its earnings results on Tuesday, July 30th. The software maker reported $0.05 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.28) by $0.33. The company had revenue of $194.58 million during the quarter, compared to analyst estimates of $192.47 million. Zendesk had a negative return on equity of 27.44% and a negative net margin of 23.70%. The business’s revenue was up 37.1% compared to the same quarter last year. During the same period in the prior year, the company earned $0.03 earnings per share. As a group, analysts predict that Zendesk will post -1.1 EPS for the current fiscal year.

In other news, insider Adrian Mcdermott sold 3,484 shares of the business’s stock in a transaction that occurred on Tuesday, August 6th. The stock was sold at an average price of $77.45, for a total transaction of $269,835.80. Following the completion of the transaction, the insider now directly owns 84,948 shares in the company, valued at $6,579,222.60. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Mikkel Svane sold 50,000 shares of the business’s stock in a transaction that occurred on 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 owns 1,377,934 shares of the company’s stock, valued at $103,289,932.64. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 254,648 shares of company stock valued at $19,617,694. Insiders own 4.60% of the company’s stock.

Several hedge funds and other institutional investors have recently modified their holdings of the company. Virginia Retirement Systems ET AL boosted its position in shares of Zendesk by 22.2% during the third quarter. Virginia Retirement Systems ET AL now owns 20,400 shares of the software maker’s stock worth $1,487,000 after buying an additional 3,700 shares during the period. Brinker Capital Inc. acquired a new stake in Zendesk in the third quarter worth approximately $606,000. Strs Ohio lifted its position in Zendesk by 40.5% in the third quarter. Strs Ohio now owns 3,902 shares of the software maker’s stock worth $284,000 after purchasing an additional 1,125 shares during the period. Envestnet Asset Management Inc. lifted its position in Zendesk by 29.6% in the third quarter. Envestnet Asset Management Inc. now owns 17,143 shares of the software maker’s stock worth $1,249,000 after purchasing an additional 3,915 shares during the period. Finally, Capital Investment Advisory Services LLC lifted its position in Zendesk by 44.2% in the third quarter. Capital Investment Advisory Services LLC now owns 865 shares of the software maker’s stock worth $63,000 after purchasing an additional 265 shares during the period. Institutional investors and hedge funds own 92.79% of the company’s stock.

About Zendesk

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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