Zendesk (ZEN) Downgraded by Zacks Investment Research to “Hold”

Zacks Investment Research downgraded shares of Zendesk (NYSE:ZEN) from a buy rating to a hold rating in a research note issued to investors on Friday, Zacks.com reports. Zacks Investment Research currently has $98.00 target price on the software maker’s stock.

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 brokerages have also issued reports on ZEN. Oppenheimer began coverage on Zendesk in a research note on Thursday, January 24th. They set a market perform rating and a $71.70 price target for the company. Wedbush decreased their price target on Zendesk from $75.00 to $71.00 and set an outperform rating for the company in a research note on Monday, February 4th. KeyCorp reissued a buy rating on shares of Zendesk in a research note on Tuesday, February 5th. Royal Bank of Canada raised their price target on Zendesk to $90.00 and gave the stock an outperform rating in a research note on Wednesday, February 6th. Finally, Wells Fargo & Co raised their price target on Zendesk from $80.00 to $90.00 and gave the stock an outperform rating in a research note on Wednesday, February 6th. Five investment analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company’s stock. Zendesk currently has a consensus rating of Buy and an average price target of $90.93.

NYSE ZEN opened at $87.81 on Friday. The company has a market cap of $9.50 billion, a price-to-earnings ratio of -92.43 and a beta of 1.64. The company has a debt-to-equity ratio of 1.10, a current ratio of 1.67 and a quick ratio of 1.67. Zendesk has a 1-year low of $45.60 and a 1-year high of $87.92.

Zendesk (NYSE:ZEN) last released its quarterly earnings results on Tuesday, April 30th. The software maker reported ($0.28) earnings per share for the quarter, meeting the consensus estimate of ($0.28). The business had revenue of $181.48 million during the quarter, compared to analysts’ expectations of $179.53 million. Zendesk had a negative return on equity of 25.53% and a negative net margin of 22.52%. The firm’s revenue for the quarter was up 39.8% compared to the same quarter last year. During the same quarter last year, the business posted $0.02 EPS. As a group, research analysts forecast that Zendesk will post -1.07 EPS for the current fiscal year.

In other Zendesk news, SVP John Geschke sold 2,500 shares of Zendesk stock in a transaction on Wednesday, March 13th. The stock was sold at an average price of $82.02, for a total transaction of $205,050.00. Following the completion of the sale, the senior vice president now directly owns 21,353 shares of the company’s stock, valued at approximately $1,751,373.06. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, SVP Norman Gennaro sold 6,820 shares of Zendesk stock in a transaction on Monday, February 11th. The shares were sold at an average price of $77.00, for a total value of $525,140.00. Following the sale, the senior vice president now directly owns 10,455 shares of the company’s stock, valued at $805,035. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 92,613 shares of company stock valued at $7,319,350. 4.60% of the stock is currently owned by corporate insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Dimensional Fund Advisors LP increased its holdings in shares of Zendesk by 4.8% in the 3rd quarter. Dimensional Fund Advisors LP now owns 170,637 shares of the software maker’s stock valued at $12,115,000 after acquiring an additional 7,763 shares during the period. Advisors Asset Management Inc. grew its stake in Zendesk by 27.5% during the 3rd quarter. Advisors Asset Management Inc. now owns 5,830 shares of the software maker’s stock worth $414,000 after buying an additional 1,258 shares during the last quarter. Neuberger Berman Group LLC grew its stake in Zendesk by 36.9% during the 3rd quarter. Neuberger Berman Group LLC now owns 36,941 shares of the software maker’s stock worth $2,623,000 after buying an additional 9,965 shares during the last quarter. Teachers Advisors LLC grew its stake in Zendesk by 19.2% during the 3rd quarter. Teachers Advisors LLC now owns 268,116 shares of the software maker’s stock worth $19,036,000 after buying an additional 43,100 shares during the last quarter. Finally, TIAA CREF Investment Management LLC grew its stake in Zendesk by 5.1% during the 3rd quarter. TIAA CREF Investment Management LLC now owns 807,879 shares of the software maker’s stock worth $57,359,000 after buying an additional 39,199 shares during the last quarter. 95.63% of the stock is owned by institutional investors and hedge funds.

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, 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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