Zendesk (NYSE:ZEN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Saturday, Zacks.com reports. The firm currently has a $93.00 target price on the software maker’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 11.78% 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. Oppenheimer initiated coverage on Zendesk in a report on Thursday, January 24th. They issued a “market perform” rating and a $71.70 price objective on the stock. Cowen lifted their price objective on Zendesk from $72.00 to $88.00 and gave the stock an “outperform” rating in a report on Wednesday, February 6th. Canaccord Genuity lifted their price objective on Zendesk from $65.00 to $85.00 and gave the stock a “buy” rating in a report on Wednesday, February 6th. Bank of America lifted their price objective on Zendesk from $68.00 to $86.00 and gave the stock a “buy” rating in a report on Wednesday, February 6th. Finally, Deutsche Bank raised their target price on shares of Zendesk to $88.00 and gave the stock a “buy” rating in a research note on Wednesday, February 6th. Three equities research analysts have rated the stock with a hold rating, seventeen have given a buy rating and one has assigned a strong buy rating to the stock. Zendesk presently has an average rating of “Buy” and a consensus price target of $79.14.
ZEN stock opened at $83.20 on Friday. The company has a debt-to-equity ratio of 1.10, a quick ratio of 1.67 and a current ratio of 1.67. Zendesk has a 12-month low of $45.60 and a 12-month high of $86.85. The stock has a market capitalization of $9.17 billion, a P/E ratio of -87.58 and a beta of 1.66.
Zendesk (NYSE:ZEN) last posted its quarterly earnings data on Tuesday, February 5th. The software maker reported $0.10 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.28) by $0.38. Zendesk had a negative return on equity of 24.19% and a negative net margin of 21.89%. The company had revenue of $172.25 million for the quarter, compared to analysts’ expectations of $165.56 million. During the same period in the previous year, the firm posted ($0.01) EPS. Zendesk’s revenue was up 41.3% compared to the same quarter last year. As a group, analysts expect that Zendesk will post -0.96 earnings per share for the current year.
In other news, SVP Norman Gennaro sold 6,820 shares of Zendesk stock in a transaction that occurred on Monday, February 11th. The shares were sold at an average price of $77.00, for a total transaction of $525,140.00. Following the sale, the senior vice president now owns 10,455 shares of the company’s stock, valued at approximately $805,035. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Adrian Mcdermott sold 2,241 shares of Zendesk stock in a transaction that occurred on Thursday, January 17th. The shares were sold at an average price of $63.11, for a total transaction of $141,429.51. Following the sale, the insider now directly owns 80,267 shares in the company, valued at approximately $5,065,650.37. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 90,070 shares of company stock worth $7,004,303. Corporate insiders own 4.70% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in ZEN. Federated Investors Inc. PA increased its holdings in Zendesk by 22.5% in the 3rd quarter. Federated Investors Inc. PA now owns 396,488 shares of the software maker’s stock valued at $28,150,000 after purchasing an additional 72,763 shares during the last quarter. Stanley Laman Group Ltd. acquired a new stake in Zendesk in the 4th quarter valued at approximately $400,000. Nisa Investment Advisors LLC increased its holdings in Zendesk by 3,529.4% in the 4th quarter. Nisa Investment Advisors LLC now owns 3,085 shares of the software maker’s stock valued at $180,000 after purchasing an additional 3,000 shares during the last quarter. Legal & General Group Plc increased its holdings in Zendesk by 4.4% in the 3rd quarter. Legal & General Group Plc now owns 48,279 shares of the software maker’s stock valued at $3,428,000 after purchasing an additional 2,042 shares during the last quarter. Finally, Calamos Advisors LLC acquired a new stake in Zendesk in the 4th quarter valued at approximately $13,488,000. 96.55% of the stock is currently owned by hedge funds and other institutional investors.
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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