Zendesk Sees Unusually High Options Volume (ZEN)

Zendesk Inc (NYSE:ZEN) saw some unusual options trading activity on Thursday. Investors acquired 6,883 call options on the stock. This is an increase of approximately 1,559% compared to the average daily volume of 415 call options.

Zendesk stock traded down $1.26 during trading hours on Friday, hitting $45.09. The company had a trading volume of 1,038,606 shares, compared to its average volume of 1,663,916. Zendesk has a 1 year low of $24.49 and a 1 year high of $50.15. The stock has a market cap of $4,791.73, a price-to-earnings ratio of -43.78 and a beta of 1.51.

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Zendesk (NYSE:ZEN) last announced its quarterly earnings results on Tuesday, February 6th. The software maker reported ($0.01) earnings per share for the quarter, topping the consensus estimate of ($0.04) by $0.03. Zendesk had a negative net margin of 25.70% and a negative return on equity of 32.48%. The firm had revenue of $123.43 million during the quarter, compared to analysts’ expectations of $119.68 million. During the same quarter in the prior year, the company earned ($0.04) EPS. The company’s revenue was up 39.3% compared to the same quarter last year. research analysts predict that Zendesk will post -1 earnings per share for the current year.

In related news, insider Adrian Mcdermott sold 1,593 shares of the firm’s stock in a transaction that occurred on Friday, January 19th. The shares were sold at an average price of $36.27, for a total value of $57,778.11. Following the sale, the insider now owns 81,081 shares in the company, valued at $2,940,807.87. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP John Geschke sold 1,493 shares of the firm’s stock in a transaction that occurred on Monday, January 8th. The stock was sold at an average price of $35.17, for a total transaction of $52,508.81. Following the completion of the sale, the senior vice president now owns 13,288 shares in the company, valued at approximately $467,338.96. The disclosure for this sale can be found here. Insiders have sold 196,936 shares of company stock valued at $8,032,434 in the last three months. 5.30% of the stock is owned by insiders.

Institutional investors and hedge funds have recently made changes to their positions in the company. Wells Fargo & Company MN raised its stake in shares of Zendesk by 14.0% during the 4th quarter. Wells Fargo & Company MN now owns 2,105,554 shares of the software maker’s stock worth $71,251,000 after acquiring an additional 258,469 shares in the last quarter. Whale Rock Capital Management LLC raised its stake in shares of Zendesk by 24.5% during the 4th quarter. Whale Rock Capital Management LLC now owns 1,805,901 shares of the software maker’s stock worth $61,112,000 after acquiring an additional 355,577 shares in the last quarter. EMS Capital LP raised its stake in shares of Zendesk by 35.0% during the 4th quarter. EMS Capital LP now owns 1,620,000 shares of the software maker’s stock worth $54,821,000 after acquiring an additional 420,000 shares in the last quarter. Hunt Lane Capital LP raised its stake in shares of Zendesk by 32.2% during the 4th quarter. Hunt Lane Capital LP now owns 900,000 shares of the software maker’s stock worth $30,456,000 after acquiring an additional 219,000 shares in the last quarter. Finally, Geode Capital Management LLC raised its stake in shares of Zendesk by 2.2% during the 4th quarter. Geode Capital Management LLC now owns 849,540 shares of the software maker’s stock worth $28,748,000 after acquiring an additional 18,334 shares in the last quarter. 93.22% of the stock is owned by hedge funds and other institutional investors.

ZEN has been the topic of several analyst reports. Royal Bank of Canada reiterated a “buy” rating and set a $42.00 price target on shares of Zendesk in a research note on Wednesday, January 17th. Piper Jaffray lifted their target price on shares of Zendesk to $60.00 and gave the company an “overweight” rating in a research note on Monday, March 12th. Zacks Investment Research upgraded shares of Zendesk from a “hold” rating to a “buy” rating and set a $41.00 target price on the stock in a research note on Sunday, January 21st. Stephens upgraded shares of Zendesk from an “underweight” rating to an “equal weight” rating in a report on Wednesday, February 7th. Finally, Bank of America lifted their price target on shares of Zendesk from $38.00 to $45.00 and gave the company a “buy” rating in a report on Wednesday, February 7th. Five analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus target price of $42.33.

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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, in applications, and on mobile devices; Zendesk Talk, a cloud-based call center software; Zendesk Guide, a knowledge base that for customer self-service and support agent productivity; Zendesk Message, a customer messaging software; and Zendesk Explore that makes customer data accessible across an organization.

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