Citigroup Initiates Coverage on Zendesk (NYSE:ZEN)

Analysts at Citigroup assumed coverage on shares of Zendesk (NYSE:ZEN) in a research report issued on Thursday, Briefing.com Automated Import reports. The brokerage set a “neutral” rating and a $100.00 price target on the software maker’s stock. Citigroup‘s price objective would suggest a potential upside of 12.76% from the stock’s previous close.

ZEN has been the subject of several other reports. Royal Bank of Canada raised their target price on shares of Zendesk from $85.00 to $100.00 and gave the company an “outperform” rating in a research note on Thursday, May 28th. Oppenheimer raised their target price on shares of Zendesk from $80.00 to $95.00 and gave the company an “outperform” rating in a research note on Wednesday. Jefferies Financial Group raised their target price on shares of Zendesk from $85.00 to $91.00 and gave the company a “buy” rating in a research note on Thursday, May 28th. Bank of America raised their target price on shares of Zendesk from $75.00 to $82.00 and gave the company a “buy” rating in a research note on Wednesday, April 15th. Finally, Craig Hallum decreased their target price on shares of Zendesk from $110.00 to $95.00 and set a “buy” rating for the company in a research note on Monday, April 27th. Six analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company’s stock. Zendesk presently has a consensus rating of “Buy” and a consensus target price of $93.24.

Shares of ZEN opened at $88.68 on Thursday. The stock has a market capitalization of $10.13 billion, a P/E ratio of -58.73 and a beta of 1.33. Zendesk has a twelve month low of $50.23 and a twelve month high of $94.87. The company has a 50 day moving average of $85.56 and a 200-day moving average of $78.51. The company has a quick ratio of 1.44, a current ratio of 1.44 and a debt-to-equity ratio of 1.28.

Zendesk (NYSE:ZEN) last issued its quarterly earnings results on Thursday, April 30th. The software maker reported $0.10 earnings per share for the quarter, topping the consensus estimate of $0.06 by $0.04. Zendesk had a negative net margin of 19.23% and a negative return on equity of 26.62%. The company had revenue of $237.50 million during the quarter, compared to analysts’ expectations of $236.94 million. During the same period last year, the business earned $0.04 EPS. The business’s quarterly revenue was up 30.9% on a year-over-year basis. On average, sell-side analysts anticipate that Zendesk will post -0.76 earnings per share for the current fiscal year.

In related news, insider Norman Gennaro sold 1,000 shares of the business’s stock in a transaction dated Monday, July 13th. The stock was sold at an average price of $93.30, for a total value of $93,300.00. Following the completion of the transaction, the insider now owns 21,128 shares of the company’s stock, valued at $1,971,242.40. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CEO Mikkel Svane sold 50,000 shares of the business’s stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $73.61, for a total value of $3,680,500.00. Following the completion of the transaction, the chief executive officer now directly owns 1,078,223 shares of the company’s stock, valued at approximately $79,367,995.03. The disclosure for this sale can be found here. Insiders have sold 142,157 shares of company stock valued at $11,061,476 in the last three months. Insiders own 4.30% of the company’s stock.

A number of hedge funds have recently bought and sold shares of ZEN. Ellevest Inc. raised its stake in Zendesk by 346.5% in the first quarter. Ellevest Inc. now owns 384 shares of the software maker’s stock valued at $25,000 after purchasing an additional 298 shares in the last quarter. FNY Investment Advisers LLC bought a new position in Zendesk in the second quarter valued at about $28,000. Canada Pension Plan Investment Board bought a new position in Zendesk in the first quarter valued at about $48,000. Rockefeller Capital Management L.P. grew its holdings in shares of Zendesk by 74.1% during the first quarter. Rockefeller Capital Management L.P. now owns 820 shares of the software maker’s stock worth $52,000 after purchasing an additional 349 shares during the last quarter. Finally, Exchange Traded Concepts LLC acquired a new position in shares of Zendesk in the second quarter worth approximately $57,000. 98.84% of the stock is owned by institutional investors and hedge funds.

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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Analyst Recommendations for Zendesk (NYSE:ZEN)

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