Zendesk (NYSE:ZEN) Upgraded to Buy at Zacks Investment Research

Zendesk (NYSE:ZEN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Saturday, Zacks.com reports. The brokerage currently has a $82.00 price target on the software maker’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 14.08% from the company’s previous close.

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 several other reports. Compass Point initiated coverage on shares of Zendesk in a research note on Tuesday, August 13th. They set a “buy” rating and a $100.00 target price on the stock. ValuEngine downgraded shares of Zendesk from a “strong-buy” rating to a “buy” rating in a research note on Wednesday, October 2nd. Jefferies Financial Group upped their target price 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. William Blair reaffirmed a “buy” rating on shares of Zendesk in a research note on Wednesday, September 18th. Finally, Stifel Nicolaus set a $92.00 target price on shares of Zendesk and gave the stock a “hold” rating in a research note on Wednesday, July 31st. Three research analysts have rated the stock with a hold rating and nineteen have given a buy rating to the stock. The stock has a consensus rating of “Buy” and a consensus price target of $97.04.

Shares of Zendesk stock traded up $1.72 on Friday, reaching $71.88. The company had a trading volume of 2,027,301 shares, compared to its average volume of 1,696,308. The firm’s 50 day moving average price is $76.28 and its two-hundred day moving average price is $83.56. The firm has a market cap of $8.17 billion, a PE ratio of -75.66 and a beta of 1.22. Zendesk has a 52-week low of $45.60 and a 52-week 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.

Zendesk (NYSE:ZEN) last released its quarterly earnings results on Tuesday, July 30th. The software maker reported $0.05 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 previous year, the firm earned $0.03 EPS. The business’s revenue was up 37.1% on a year-over-year basis. As a group, sell-side analysts predict that Zendesk will post -1.1 EPS for the current year.

In other Zendesk news, insider Adrian Mcdermott sold 3,484 shares of the business’s stock in a transaction that occurred on Monday, October 7th. The shares were sold at an average price of $74.73, for a total transaction of $260,359.32. Following the completion of the transaction, the insider now owns 84,948 shares in the company, valued at approximately $6,348,164.04. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Mikkel Svane sold 50,000 shares of the business’s stock in a transaction that occurred on Thursday, August 15th. The stock was sold at an average price of $74.96, for a total transaction of $3,748,000.00. Following the transaction, the chief executive officer now owns 1,377,934 shares of the company’s stock, valued at approximately $103,289,932.64. The disclosure for this sale can be found here. Insiders have sold a total of 254,836 shares of company stock valued at $19,806,156 in the last quarter. 4.60% of the stock is currently owned by company insiders.

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Nisa Investment Advisors LLC grew its holdings in Zendesk by 4.5% during the 2nd quarter. Nisa Investment Advisors LLC now owns 3,225 shares of the software maker’s stock worth $287,000 after acquiring an additional 140 shares in the last quarter. Cerebellum GP LLC boosted its holdings in shares of Zendesk by 3.7% in the 3rd quarter. Cerebellum GP LLC now owns 3,905 shares of the software maker’s stock valued at $132,000 after buying an additional 141 shares in the last quarter. Tyers Asset Management LLC boosted its holdings in shares of Zendesk by 7.2% in the 2nd quarter. Tyers Asset Management LLC now owns 2,492 shares of the software maker’s stock valued at $222,000 after buying an additional 168 shares in the last quarter. Capital Investment Advisory Services LLC boosted its holdings in shares of Zendesk by 50.0% in the 2nd quarter. Capital Investment Advisory Services LLC now owns 600 shares of the software maker’s stock valued at $56,000 after buying an additional 200 shares in the last quarter. Finally, Flinton Capital Management LLC boosted its holdings in shares of Zendesk by 7.2% in the 2nd quarter. Flinton Capital Management LLC now owns 3,026 shares of the software maker’s stock valued at $269,000 after buying an additional 204 shares in the last quarter. Institutional investors own 92.77% 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.

Further Reading: Price to Earnings Ratio (PE) Basics

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