Zendesk (ZEN) Upgraded 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 report report published on Saturday morning.

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 commented on ZEN. UBS Group set a $56.00 target price on shares of Zendesk and gave the stock a hold rating in a report on Wednesday, October 31st. Canaccord Genuity reiterated a buy rating and issued a $65.00 target price on shares of Zendesk in a report on Wednesday, August 1st. Royal Bank of Canada boosted their target price on shares of Zendesk to $68.00 and gave the stock an outperform rating in a report on Monday, July 30th. Deutsche Bank dropped their target price on shares of Zendesk from $85.00 to $80.00 and set a buy rating on the stock in a report on Wednesday, October 31st. Finally, Stifel Nicolaus boosted their target price on shares of Zendesk from $50.00 to $60.00 and gave the stock a hold rating in a report on Wednesday, August 1st. Four research analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the company. The stock has an average rating of Buy and a consensus price target of $65.59.

NYSE ZEN opened at $53.01 on Friday. The company has a debt-to-equity ratio of 1.10, a quick ratio of 2.74 and a current ratio of 2.74. Zendesk has a 12 month low of $31.90 and a 12 month high of $72.76. The company has a market capitalization of $5.85 billion, a P/E ratio of -51.47 and a beta of 1.84.

Zendesk (NYSE:ZEN) last released its earnings results on Tuesday, October 30th. The software maker reported $0.09 EPS for the quarter, topping analysts’ consensus estimates of $0.04 by $0.05. Zendesk had a negative net margin of 22.64% and a negative return on equity of 26.66%. The business had revenue of $154.83 million for the quarter, compared to the consensus estimate of $151.78 million. During the same period in the previous year, the firm earned ($0.02) EPS. The business’s revenue for the quarter was up 37.9% on a year-over-year basis. On average, research analysts expect that Zendesk will post -0.92 EPS for the current fiscal year.

In other news, COO John T. Keiser sold 1,489 shares of the business’s stock in a transaction that occurred on Friday, August 17th. The shares were sold at an average price of $62.10, for a total transaction of $92,466.90. Following the sale, the chief operating officer now owns 25,452 shares in the company, valued at $1,580,569.20. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Chairman Mikkel Svane sold 50,000 shares of the business’s stock in a transaction that occurred on Wednesday, August 15th. The shares were sold at an average price of $62.09, for a total transaction of $3,104,500.00. Following the sale, the chairman now owns 1,575,034 shares in the company, valued at approximately $97,793,861.06. The disclosure for this sale can be found here. Insiders have sold 98,876 shares of company stock worth $6,331,517 in the last 90 days. 4.70% of the stock is owned by company insiders.

Several hedge funds have recently added to or reduced their stakes in the company. Pendal Group Ltd raised its holdings in shares of Zendesk by 24.0% during the second quarter. Pendal Group Ltd now owns 4,873 shares of the software maker’s stock valued at $266,000 after acquiring an additional 943 shares during the period. Xact Kapitalforvaltning AB grew its position in Zendesk by 8.8% during the third quarter. Xact Kapitalforvaltning AB now owns 16,046 shares of the software maker’s stock valued at $1,139,000 after purchasing an additional 1,300 shares in the last quarter. Great West Life Assurance Co. Can grew its position in Zendesk by 13.4% during the second quarter. Great West Life Assurance Co. Can now owns 11,264 shares of the software maker’s stock valued at $614,000 after purchasing an additional 1,333 shares in the last quarter. Harvest Fund Management Co. Ltd grew its position in Zendesk by 211.8% during the third quarter. Harvest Fund Management Co. Ltd now owns 2,242 shares of the software maker’s stock valued at $159,000 after purchasing an additional 1,523 shares in the last quarter. Finally, First Trust Advisors LP grew its position in Zendesk by 0.8% during the second quarter. First Trust Advisors LP now owns 201,928 shares of the software maker’s stock valued at $11,003,000 after purchasing an additional 1,580 shares in the last quarter. Institutional investors and hedge funds own 92.74% of the company’s stock.

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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