Zendesk Inc (ZEN) Stock Rating Lowered by Zacks Investment Research

Zendesk Inc (NYSE:ZEN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Wednesday, May 10th.

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. “

A number of other research analysts also recently weighed in on the company. JMP Securities reissued an “outperform” rating and issued a $31.00 price target on shares of Zendesk in a research note on Tuesday, January 17th. Guggenheim reaffirmed a “buy” rating and set a $33.00 price objective on shares of Zendesk in a research note on Tuesday, April 18th. Wells Fargo & Co assumed coverage on Zendesk in a research note on Wednesday, January 11th. They set an “outperform” rating on the stock. Rosenblatt Securities reaffirmed a “buy” rating and set a $34.00 price objective on shares of Zendesk in a research note on Wednesday, March 8th. Finally, William Blair reaffirmed an “outperform” rating on shares of Zendesk in a research note on Monday, April 3rd. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and twelve have issued a buy rating to the company. The company currently has an average rating of “Buy” and a consensus target price of $32.75.

Analyst Recommendations for Zendesk (NYSE:ZEN)

Shares of Zendesk (NYSE:ZEN) traded down 1.58% during midday trading on Wednesday, hitting $24.89. The stock had a trading volume of 1,151,773 shares. The stock has a 50 day moving average price of $27.71 and a 200-day moving average price of $25.28. Zendesk has a 52 week low of $19.77 and a 52 week high of $31.88. The stock’s market capitalization is $2.46 billion.

Zendesk (NYSE:ZEN) last posted its quarterly earnings results on Thursday, May 4th. The software maker reported ($0.05) earnings per share for the quarter, beating the Zacks’ consensus estimate of ($0.06) by $0.01. The company had revenue of $93.01 million for the quarter, compared to the consensus estimate of $92.46 million. Zendesk had a negative return on equity of 32.71% and a negative net margin of 33.27%. The firm’s quarterly revenue was up 35.9% on a year-over-year basis. During the same quarter in the prior year, the business posted ($0.08) EPS. Equities research analysts anticipate that Zendesk will post ($0.18) earnings per share for the current year.

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In other news, insider Adrian Mcdermott sold 1,766 shares of the firm’s stock in a transaction dated Monday, March 20th. The stock was sold at an average price of $27.58, for a total value of $48,706.28. Following the completion of the transaction, the insider now owns 80,000 shares in the company, valued at approximately $2,206,400. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Mikkel Svane sold 50,000 shares of the firm’s stock in a transaction dated Monday, May 8th. The shares were sold at an average price of $27.20, for a total value of $1,360,000.00. Following the completion of the transaction, the chief executive officer now owns 1,777,268 shares of the company’s stock, valued at approximately $48,341,689.60. The disclosure for this sale can be found here. Insiders sold a total of 92,174 shares of company stock worth $2,489,736 in the last three months. Company insiders own 17.00% of the company’s stock.

A number of institutional investors have recently bought and sold shares of the company. Goldman Sachs Group Inc. boosted its position in Zendesk by 28.7% in the first quarter. Goldman Sachs Group Inc. now owns 337,329 shares of the software maker’s stock worth $9,458,000 after buying an additional 75,286 shares during the last quarter. Point72 Asset Management L.P. acquired a new position in Zendesk during the first quarter worth approximately $11,404,000. Lucha Capital Management LP boosted its position in Zendesk by 43.7% in the first quarter. Lucha Capital Management LP now owns 419,060 shares of the software maker’s stock worth $11,750,000 after buying an additional 127,380 shares during the last quarter. Jane Street Group LLC acquired a new position in Zendesk during the first quarter worth approximately $349,000. Finally, EMS Capital LP boosted its position in Zendesk by 71.4% in the first quarter. EMS Capital LP now owns 1,440,000 shares of the software maker’s stock worth $40,378,000 after buying an additional 600,000 shares during the last quarter. Institutional investors and hedge funds own 87.19% of the company’s stock.

Zendesk Company Profile

Zendesk, Inc (Zendesk) is a software development company. The Zendesk family of products is built to work together to help organizations understand and manage customer relationships. All Zendesk products share a common interface and are being developed to support a shared services infrastructure and common customer data platform.

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