Zuora (NYSE:ZUO) Cut to “Sell” at Zacks Investment Research

Zacks Investment Research cut shares of Zuora (NYSE:ZUO) from a hold rating to a sell rating in a research note released on Sunday, 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. “

Several other equities research analysts have also recently weighed in on the company. Canaccord Genuity decreased their price target on Zuora from $28.00 to $18.00 and set a buy rating on the stock in a research report on Friday, May 31st. Morgan Stanley cut their price objective on shares of Zuora from $22.00 to $16.00 and set an equal weight rating for the company in a research report on Friday, May 31st. ValuEngine raised shares of Zuora from a hold rating to a buy rating in a research note on Saturday, July 6th. Jefferies Financial Group reduced their price objective on shares of Zuora from $35.00 to $29.00 and set a buy rating for the company in a research note on Friday, May 31st. Finally, Needham & Company LLC set a $18.00 target price on shares of Zuora and gave the stock a buy rating in a report on Thursday, August 29th. Two equities research analysts have rated the stock with a sell rating, one has given a hold rating and five have given a buy rating to the stock. Zuora has an average rating of Hold and an average target price of $20.17.

NYSE:ZUO opened at $15.72 on Friday. The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.91 and a current ratio of 1.91. Zuora has a 52-week low of $13.04 and a 52-week high of $26.43. The firm has a market cap of $1.72 billion, a price-to-earnings ratio of -19.17 and a beta of 1.92. The business’s fifty day moving average is $14.58 and its 200 day moving average is $18.13.

Zuora (NYSE:ZUO) last issued its quarterly earnings data on Wednesday, August 28th. The company reported ($0.19) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.18) by ($0.01). Zuora had a negative return on equity of 48.45% and a negative net margin of 30.81%. The company had revenue of $69.70 million for the quarter, compared to analysts’ expectations of $66.87 million. During the same period last year, the company posted ($0.13) EPS. The business’s revenue for the quarter was up 20.6% on a year-over-year basis. Equities analysts predict that Zuora will post -0.72 EPS for the current fiscal year.

In other Zuora news, Director Jason Pressman sold 11,008 shares of the company’s stock in a transaction dated Monday, June 17th. The stock was sold at an average price of $15.35, for a total value of $168,972.80. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, SVP Jennifer Pileggi sold 10,000 shares of the company’s stock in a transaction dated Wednesday, June 19th. The stock was sold at an average price of $16.01, for a total value of $160,100.00. The disclosure for this sale can be found here. Insiders have sold 31,008 shares of company stock valued at $489,273 in the last three months. 26.02% of the stock is owned by corporate insiders.

Several institutional investors and hedge funds have recently modified their holdings of ZUO. Oppenheimer Asset Management Inc. purchased a new position in shares of Zuora during the first quarter worth about $29,000. BNP Paribas Arbitrage SA raised its stake in Zuora by 73.9% in the first quarter. BNP Paribas Arbitrage SA now owns 1,518 shares of the company’s stock valued at $30,000 after purchasing an additional 645 shares in the last quarter. Baldwin Brothers Inc. MA purchased a new stake in Zuora in the second quarter valued at approximately $38,000. Zurcher Kantonalbank Zurich Cantonalbank bought a new stake in Zuora during the second quarter valued at approximately $49,000. Finally, Rehmann Capital Advisory Group bought a new stake in Zuora during the second quarter valued at approximately $53,000. 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.

See Also: Trading Options- What is a Strangle?

Get a free copy of the Zacks research report on Zuora (ZUO)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Zuora (NYSE:ZUO)

Receive News & Ratings for Zuora Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Zuora and related companies with MarketBeat.com's FREE daily email newsletter.