Zendesk (NYSE:ZEN) Stock Rating Upgraded by Zacks Investment Research

Zacks Investment Research upgraded shares of Zendesk (NYSE:ZEN) from a sell rating to a hold rating in a report released on Sunday, Zacks.com reports.

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. “

ZEN has been the subject of several other reports. Jefferies Financial Group upped their price objective on Zendesk from $102.00 to $108.00 and gave the company a buy rating in a research note on Wednesday, July 31st. Wedbush reiterated an outperform rating and issued a $103.00 target price (up from $95.00) on shares of Zendesk in a research note on Thursday, May 23rd. KeyCorp reissued a buy rating and issued a $108.00 target price (up previously from $102.00) on shares of Zendesk in a report on Tuesday, July 30th. UBS Group set a $98.00 price target on Zendesk and gave the stock a hold rating in a research note on Wednesday, July 31st. Finally, Goldman Sachs Group started coverage on Zendesk in a report on Friday, June 7th. They set a buy rating and a $105.00 price target for the company. Four research analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the company. The company has an average rating of Buy and an average price target of $98.09.

Shares of NYSE:ZEN opened at $75.83 on Friday. The company has a 50-day simple moving average of $80.92 and a 200-day simple moving average of $84.47. Zendesk has a one year low of $45.60 and a one year high of $94.89. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.67 and a current ratio of 0.67. The stock has a market capitalization of $8.69 billion, a price-to-earnings ratio of -79.82 and a beta of 1.31.

Zendesk (NYSE:ZEN) last announced its earnings results on Tuesday, July 30th. The software maker reported $0.05 earnings per share for the quarter, topping the consensus estimate of ($0.28) by $0.33. Zendesk had a negative net margin of 23.70% and a negative return on equity of 27.44%. The business had revenue of $194.58 million during the quarter, compared to the consensus estimate of $192.47 million. During the same quarter in the prior year, the firm earned $0.03 earnings per share. The business’s quarterly revenue was up 37.1% compared to the same quarter last year. As a group, research analysts forecast that Zendesk will post -1.13 EPS for the current fiscal year.

In related news, SVP Norman Gennaro sold 752 shares of the company’s stock in a transaction on Wednesday, June 19th. The stock was sold at an average price of $88.42, for a total transaction of $66,491.84. Following the transaction, the senior vice president now owns 14,000 shares of the company’s stock, valued at $1,237,880. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Elena Gomez sold 5,000 shares of the company’s stock in a transaction on Thursday, June 20th. The stock was sold at an average price of $91.79, for a total value of $458,950.00. Following the transaction, the chief financial officer now directly owns 25,055 shares in the company, valued at approximately $2,299,798.45. The disclosure for this sale can be found here. Insiders sold a total of 257,380 shares of company stock valued at $20,202,336 over the last three months. Insiders own 4.60% of the company’s stock.

Hedge funds and other institutional investors have recently modified their holdings of the business. Capital Investment Advisory Services LLC boosted its holdings in Zendesk by 50.0% during the second quarter. Capital Investment Advisory Services LLC now owns 600 shares of the software maker’s stock worth $56,000 after buying an additional 200 shares in the last quarter. Advisory Services Network LLC acquired a new position in Zendesk during the second quarter worth about $80,000. FUKOKU MUTUAL LIFE INSURANCE Co acquired a new position in Zendesk during the second quarter worth about $89,000. Focused Wealth Management Inc purchased a new position in Zendesk in the second quarter valued at about $127,000. Finally, Flagship Harbor Advisors LLC increased its holdings in Zendesk by 30.7% in the second quarter. Flagship Harbor Advisors LLC now owns 1,713 shares of the software maker’s stock valued at $152,000 after buying an additional 402 shares in the last quarter. Institutional investors own 93.66% 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, 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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