Zuora (NYSE:ZUO) Lowered to Sell at Zacks Investment Research

Zacks Investment Research lowered shares of Zuora (NYSE:ZUO) from a hold rating to a sell rating in a research report released on Sunday morning, Zacks.com reports.

According to Zacks, “Zuora, Inc. provides cloud-based software on a subscription basis. The company’s product portfolio includes Zuora Billing, Zuora RevPro, Zuora CPQ, Zuora Insights and Zuora Collect. Its platform offers Zuora Central. Zuora, Inc. is headquartered in San Mateo, California. “

ZUO has been the topic of several other research reports. Jefferies Financial Group lowered their price objective on shares of Zuora from $35.00 to $29.00 and set a buy rating on the stock in a research report on Friday, May 31st. ValuEngine upgraded shares of Zuora from a hold rating to a buy rating in a research note on Saturday, July 6th. Needham & Company LLC set a $18.00 target price on shares of Zuora and gave the company a buy rating in a research report on Thursday, August 29th. Morgan Stanley decreased their price target on shares of Zuora from $22.00 to $16.00 and set an equal weight rating for the company in a research note on Friday, May 31st. Finally, Canaccord Genuity decreased their price target on shares of Zuora from $28.00 to $18.00 and set a buy rating for the company in a research note on Friday, May 31st. Two research analysts have rated the stock with a sell rating, one has issued a hold rating and five have assigned a buy rating to the company. The company currently has a consensus rating of Hold and an average target price of $20.17.

Shares of Zuora stock opened at $15.89 on Friday. Zuora has a 1 year low of $13.04 and a 1 year high of $26.43. The firm has a market cap of $1.72 billion, a PE ratio of -19.38 and a beta of 1.91. The stock has a fifty day moving average price of $14.57 and a 200-day moving average price of $18.17. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.91 and a quick ratio of 1.91.

Zuora (NYSE:ZUO) last released its earnings results on Wednesday, August 28th. The company reported ($0.19) EPS for the quarter, missing the Zacks’ consensus estimate of ($0.18) by ($0.01). The business had revenue of $69.70 million for the quarter, compared to the consensus estimate of $66.87 million. Zuora had a negative return on equity of 48.45% and a negative net margin of 30.81%. The company’s revenue for the quarter was up 20.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.13) earnings per share. As a group, equities analysts anticipate that Zuora will post -0.72 EPS for the current fiscal year.

In related news, SVP Jennifer Pileggi sold 10,000 shares of the business’s stock in a transaction dated Monday, July 8th. The stock was sold at an average price of $16.02, for a total value of $160,200.00. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Jason Pressman sold 11,008 shares of the business’s stock in a transaction dated Monday, June 17th. The shares were sold at an average price of $15.35, for a total value of $168,972.80. The disclosure for this sale can be found here. Insiders have sold a total of 31,008 shares of company stock worth $489,273 in the last ninety days. Insiders own 26.02% of the company’s stock.

A number of large investors have recently modified their holdings of ZUO. BlackRock Inc. increased its stake in shares of Zuora by 312.8% in the second quarter. BlackRock Inc. now owns 5,839,001 shares of the company’s stock worth $89,455,000 after purchasing an additional 4,424,576 shares in the last quarter. LLBH Private Wealth Management LLC bought a new stake in Zuora during the 2nd quarter valued at $57,000. Bares Capital Management Inc. bought a new stake in Zuora during the 2nd quarter valued at $37,086,000. Brown Advisory Inc. raised its holdings in Zuora by 84.7% during the 2nd quarter. Brown Advisory Inc. now owns 3,355,244 shares of the company’s stock valued at $51,402,000 after acquiring an additional 1,538,931 shares during the period. Finally, Gilder Gagnon Howe & Co. LLC lifted its position in shares of Zuora by 198.2% during the first quarter. Gilder Gagnon Howe & Co. LLC now owns 1,975,935 shares of the company’s stock worth $39,578,000 after acquiring an additional 1,313,273 shares in the last quarter. Hedge funds and other institutional investors own 51.67% of the company’s stock.

Zuora Company Profile

Zuora, Inc provides cloud-based software on a subscription basis that enables companies in various industries to launch, manage, and transform into a subscription business. The company offers Zuora Central platform that acts as an intelligent subscription management hub that automates the subscription order-to-cash process, including quoting, billing, collections, analytics, and revenue recognition.

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