Zendesk (ZEN) Trading Down 6.3% After Insider Selling

Zendesk Inc (NYSE:ZEN) was down 6.3% on Friday after an insider sold shares in the company. The company traded as low as $57.71 and last traded at $57.82. Approximately 1,697,035 shares were traded during mid-day trading, an increase of 27% from the average daily volume of 1,335,184 shares. The stock had previously closed at $61.70.

Specifically, CFO Elena Gomez sold 500 shares of the stock in a transaction on Thursday, September 20th. The shares were sold at an average price of $67.20, for a total transaction of $33,600.00. Following the completion of the sale, the chief financial officer now owns 18,062 shares of the company’s stock, valued at $1,213,766.40. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Adrian Mcdermott sold 1,811 shares of the stock in a transaction on Friday, August 17th. The stock was sold at an average price of $62.10, for a total transaction of $112,463.10. Following the sale, the insider now directly owns 80,267 shares of the company’s stock, valued at approximately $4,984,580.70. The disclosure for this sale can be found here. Insiders have sold 117,704 shares of company stock valued at $7,476,072 in the last three months. 4.70% of the stock is owned by insiders.

ZEN has been the subject of a number of analyst reports. Jefferies Financial Group initiated coverage on shares of Zendesk in a research report on Monday, October 1st. They issued a “buy” rating and a $82.00 target price for the company. Morgan Stanley raised their target price on shares of Zendesk from $62.00 to $65.00 and gave the company an “overweight” rating in a research report on Wednesday, June 27th. Bank of America raised their target price on shares of Zendesk from $64.00 to $68.00 and gave the company a “buy” rating in a research report on Monday, July 23rd. Deutsche Bank initiated coverage on shares of Zendesk in a research report on Monday, October 8th. They issued a “buy” rating and a $85.00 target price for the company. Finally, Stifel Nicolaus raised their target price on shares of Zendesk from $50.00 to $60.00 and gave the company a “hold” rating in a research report on Wednesday, August 1st. Four research analysts have rated the stock with a hold rating, fourteen have assigned a buy rating and one has assigned a strong buy rating to the stock. The stock has a consensus rating of “Buy” and a consensus target price of $65.00.

The stock has a market cap of $6.67 billion, a price-to-earnings ratio of -56.14 and a beta of 1.61. The company has a current ratio of 2.74, a quick ratio of 2.74 and a debt-to-equity ratio of 1.10.

Zendesk (NYSE:ZEN) last announced its quarterly earnings results on Tuesday, July 31st. The software maker reported $0.03 EPS for the quarter, beating analysts’ consensus estimates of ($0.26) by $0.29. The firm had revenue of $141.88 million during the quarter, compared to analysts’ expectations of $137.96 million. Zendesk had a negative net margin of 23.24% and a negative return on equity of 28.60%. Equities analysts predict that Zendesk Inc will post -0.95 earnings per share for the current fiscal year.

A number of hedge funds have recently made changes to their positions in ZEN. Cadian Capital Management LP lifted its stake in Zendesk by 275.9% in the second quarter. Cadian Capital Management LP now owns 963,339 shares of the software maker’s stock valued at $52,492,000 after acquiring an additional 707,039 shares during the last quarter. Bank of America Corp DE lifted its stake in Zendesk by 162.9% in the second quarter. Bank of America Corp DE now owns 1,080,019 shares of the software maker’s stock valued at $58,851,000 after acquiring an additional 669,269 shares during the last quarter. Ardevora Asset Management LLP acquired a new stake in Zendesk in the second quarter valued at $32,861,000. Millennium Management LLC lifted its stake in Zendesk by 36.4% in the second quarter. Millennium Management LLC now owns 2,174,017 shares of the software maker’s stock valued at $118,462,000 after acquiring an additional 579,772 shares during the last quarter. Finally, Renaissance Technologies LLC acquired a new stake in Zendesk in the second quarter valued at $22,103,000. Hedge funds and other institutional investors own 92.20% of the company’s stock.

About Zendesk (NYSE:ZEN)

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, in applications, and on mobile devices; Zendesk Talk, a cloud-based call center software; Zendesk Guide, a knowledge base that for customer self-service and support agent productivity; Zendesk Message, a customer messaging software; and Zendesk Explore that makes customer data accessible across an organization.

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