Zendesk (NYSE:ZEN) Earns “Hold” Rating from Zacks Investment Research

Zacks Investment Research reaffirmed their hold rating on shares of Zendesk (NYSE:ZEN) in a research note released on Saturday, Zacks.com reports. The brokerage currently has a $82.00 price objective 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. “

ZEN has been the topic of a number of other reports. Jefferies Financial Group upped their price target on shares of Zendesk from $102.00 to $108.00 and gave the stock a buy rating in a research note on Wednesday, July 31st. Royal Bank of Canada dropped their price target on shares of Zendesk from $106.00 to $100.00 and set an outperform rating on the stock in a research note on Tuesday, October 15th. Compass Point started coverage on shares of Zendesk in a research note on Tuesday, August 13th. They issued a buy rating and a $100.00 price target on the stock. UBS Group set a $98.00 price target on shares of Zendesk and gave the stock a hold rating in a research note on Wednesday, July 31st. Finally, William Blair reaffirmed a buy rating on shares of Zendesk in a research note on Thursday, October 10th. Four analysts have rated the stock with a hold rating and eighteen have issued a buy rating to the company. The company has a consensus rating of Buy and an average target price of $95.99.

NYSE ZEN opened at $63.73 on Friday. Zendesk has a 1-year low of $45.60 and a 1-year high of $94.89. The company has a current ratio of 0.67, a quick ratio of 0.67 and a debt-to-equity ratio of 0.23. The company has a market capitalization of $7.15 billion, a PE ratio of -67.08 and a beta of 1.22. The firm’s fifty day simple moving average is $73.40 and its 200-day simple moving average is $82.64.

Zendesk (NYSE:ZEN) last posted its quarterly earnings results on Tuesday, July 30th. The software maker reported $0.05 earnings per share for the quarter, topping the Zacks’ 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 for the quarter, compared to the consensus estimate of $192.47 million. During the same period in the prior year, the business posted $0.03 earnings per share. Zendesk’s revenue for the quarter was up 37.1% compared to the same quarter last year. As a group, analysts predict that Zendesk will post -1.1 EPS for the current year.

In related news, CFO Elena Gomez sold 4,500 shares of the company’s stock in a transaction on Monday, October 21st. The shares were sold at an average price of $64.50, for a total value of $290,250.00. Following the completion of the sale, the chief financial officer now directly owns 22,034 shares in the company, valued at $1,421,193. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CMO Jeffrey J. Titterton sold 700 shares of the company’s stock in a transaction on Friday, October 18th. The stock was sold at an average price of $67.47, for a total transaction of $47,229.00. Following the completion of the sale, the chief marketing officer now owns 12,891 shares of the company’s stock, valued at $869,755.77. The disclosure for this sale can be found here. Insiders sold 254,648 shares of company stock valued at $19,617,694 over the last quarter. 4.60% of the stock is currently owned by corporate insiders.

A number of large investors have recently modified their holdings of the stock. Rothschild & Co Wealth Management UK Ltd bought a new stake in Zendesk during the second quarter valued at about $25,000. 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 valued at $56,000 after acquiring an additional 200 shares during the period. Advisory Services Network LLC bought a new stake in Zendesk during the second quarter valued at about $80,000. FUKOKU MUTUAL LIFE INSURANCE Co bought a new stake in Zendesk during the second quarter valued at about $89,000. Finally, Focused Wealth Management Inc bought a new stake in Zendesk during the second quarter valued at about $127,000. Hedge funds and other institutional investors own 92.79% 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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