Wedbush Initiates Coverage on Zendesk (ZEN)

Research analysts at Wedbush began coverage on shares of Zendesk (NYSE:ZEN) in a research note issued on Thursday, MarketBeat reports. The brokerage set an “outperform” rating and a $71.00 price target on the software maker’s stock. Wedbush’s target price would indicate a potential upside of 21.58% from the company’s previous close.

ZEN has been the subject of several other research reports. Stifel Nicolaus increased their price target on shares of Zendesk from $60.00 to $68.00 and gave the company a “hold” rating in a research note on Tuesday, September 11th. Jefferies Financial Group began coverage on shares of Zendesk in a research note on Monday, October 1st. They issued a “buy” rating and a $82.00 price target for the company. Morgan Stanley increased their price target on shares of Zendesk from $72.00 to $84.00 and gave the company an “overweight” rating in a research note on Tuesday, September 18th. Deutsche Bank began coverage on shares of Zendesk in a research note on Monday, October 8th. They issued a “buy” rating and a $85.00 price target for the company. Finally, Zacks Investment Research raised shares of Zendesk from a “sell” rating to a “hold” rating in a research note on Saturday, November 3rd. Four analysts have rated the stock with a hold rating, sixteen have given a buy rating and one has assigned a strong buy rating to the company’s stock. The company has a consensus rating of “Buy” and an average price target of $66.11.

ZEN stock opened at $58.40 on Thursday. The stock has a market capitalization of $6.26 billion, a price-to-earnings ratio of -56.70 and a beta of 1.85. The company has a debt-to-equity ratio of 1.12, a current ratio of 1.78 and a quick ratio of 1.79. Zendesk has a 12 month low of $33.13 and a 12 month high of $72.76.

Zendesk (NYSE:ZEN) last released its quarterly earnings data on Tuesday, October 30th. The software maker reported $0.09 EPS for the quarter, beating the Zacks’ consensus estimate of $0.04 by $0.05. The company had revenue of $154.83 million during the quarter, compared to the consensus estimate of $151.78 million. Zendesk had a negative net margin of 22.64% and a negative return on equity of 26.15%. Zendesk’s quarterly revenue was up 37.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.02) EPS. On average, sell-side analysts expect that Zendesk will post -0.92 earnings per share for the current year.

In other Zendesk news, SVP John Geschke sold 5,000 shares of the stock in a transaction that occurred on Monday, September 17th. The shares were sold at an average price of $69.20, for a total transaction of $346,000.00. Following the sale, the senior vice president now directly owns 17,665 shares in the company, valued at approximately $1,222,418. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Chairman Mikkel Svane sold 50,000 shares of the stock in a transaction that occurred on Thursday, November 15th. The stock was sold at an average price of $52.85, for a total transaction of $2,642,500.00. Following the sale, the chairman now owns 1,529,044 shares in the company, valued at $80,809,975.40. The disclosure for this sale can be found here. Insiders have sold a total of 113,325 shares of company stock valued at $6,563,500 in the last ninety days. 4.70% of the stock is currently owned by corporate insiders.

Institutional investors have recently added to or reduced their stakes in the business. Catalyst Capital Advisors LLC lifted its holdings in Zendesk by 2,509.9% during the 2nd quarter. Catalyst Capital Advisors LLC now owns 2,114 shares of the software maker’s stock worth $115,000 after buying an additional 2,033 shares in the last quarter. DekaBank Deutsche Girozentrale lifted its holdings in Zendesk by 79.8% during the 3rd quarter. DekaBank Deutsche Girozentrale now owns 2,086 shares of the software maker’s stock worth $145,000 after buying an additional 926 shares in the last quarter. Rehmann Capital Advisory Group lifted its holdings in Zendesk by 7,000.0% during the 3rd quarter. Rehmann Capital Advisory Group now owns 10,650 shares of the software maker’s stock worth $150,000 after buying an additional 10,500 shares in the last quarter. Harvest Fund Management Co. Ltd lifted its holdings in Zendesk by 211.8% during the 3rd quarter. Harvest Fund Management Co. Ltd now owns 2,242 shares of the software maker’s stock worth $159,000 after buying an additional 1,523 shares in the last quarter. Finally, Russell Investments Group Ltd. acquired a new stake in Zendesk during the 2nd quarter worth approximately $180,000. Institutional investors own 92.86% 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, 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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Analyst Recommendations for Zendesk (NYSE:ZEN)

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