Zendesk (NYSE:ZEN) Stock Price Down 9.3% Following Analyst Downgrade

Zendesk Inc (NYSE:ZEN)’s stock price dropped 9.3% during trading on Friday after Royal Bank of Canada lowered their price target on the stock from $120.00 to $110.00. Royal Bank of Canada currently has an outperform rating on the stock. Zendesk traded as low as $89.10 and last traded at $91.15, approximately 6,422,918 shares traded hands during mid-day trading. An increase of 204% from the average daily volume of 2,113,833 shares. The stock had previously closed at $100.52.

A number of other research firms have also recently issued reports on ZEN. Zacks Investment Research cut shares of Zendesk from a “buy” rating to a “hold” rating in a research report on Friday, July 24th. Canaccord Genuity boosted their price objective on shares of Zendesk from $85.00 to $95.00 and gave the company a “buy” rating in a research report on Tuesday, June 16th. Oppenheimer boosted their price objective on shares of Zendesk from $80.00 to $95.00 and gave the company an “outperform” rating in a research report on Wednesday, July 15th. Stifel Nicolaus decreased their price objective on shares of Zendesk from $85.00 to $75.00 and set a “hold” rating on the stock in a research report on Friday, May 1st. Finally, Goldman Sachs Group boosted their price objective on shares of Zendesk from $96.00 to $113.00 in a research report on Monday, June 29th. Six research analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company. Zendesk currently has an average rating of “Buy” and a consensus price target of $99.75.

In other news, CEO Mikkel Svane sold 50,000 shares of the company’s stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $73.61, for a total value of $3,680,500.00. Following the transaction, the chief executive officer now owns 1,078,223 shares in the company, valued at $79,367,995.03. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Carl Bass sold 9,668 shares of the company’s stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $77.18, for a total transaction of $746,176.24. Following the completion of the transaction, the director now owns 11,468 shares in the company, valued at approximately $885,100.24. The disclosure for this sale can be found here. In the last quarter, insiders sold 142,594 shares of company stock worth $11,218,424. Insiders own 4.30% of the company’s stock.

Hedge funds and other institutional investors have recently modified their holdings of the company. Capital World Investors lifted its position in Zendesk by 792.5% during the first quarter. Capital World Investors now owns 4,765,978 shares of the software maker’s stock valued at $305,070,000 after purchasing an additional 4,231,978 shares during the period. Norges Bank bought a new position in Zendesk during the fourth quarter valued at approximately $90,429,000. Eagle Asset Management Inc. lifted its position in Zendesk by 99.8% during the first quarter. Eagle Asset Management Inc. now owns 2,202,123 shares of the software maker’s stock valued at $154,868,000 after purchasing an additional 1,099,814 shares during the period. Janus Henderson Group PLC lifted its position in Zendesk by 17.9% during the first quarter. Janus Henderson Group PLC now owns 6,218,718 shares of the software maker’s stock valued at $398,051,000 after purchasing an additional 943,914 shares during the period. Finally, Pictet Asset Management Ltd. lifted its position in Zendesk by 146.0% during the first quarter. Pictet Asset Management Ltd. now owns 1,261,980 shares of the software maker’s stock valued at $80,779,000 after purchasing an additional 749,027 shares during the period. Hedge funds and other institutional investors own 98.84% of the company’s stock.

The company has a market cap of $10.41 billion, a P/E ratio of -58.06 and a beta of 1.33. The stock’s 50-day moving average is $88.52 and its two-hundred day moving average is $79.73. The company has a debt-to-equity ratio of 1.28, a current ratio of 1.44 and a quick ratio of 1.44.

Zendesk (NYSE:ZEN) last issued its quarterly earnings data on Thursday, July 30th. The software maker reported $0.14 earnings per share for the quarter, beating the Zacks’ consensus estimate of ($0.20) by $0.34. The company had revenue of $246.66 million for the quarter, compared to the consensus estimate of $239.82 million. Zendesk had a negative net margin of 19.24% and a negative return on equity of 22.07%. On average, analysts predict that Zendesk Inc will post -0.76 EPS for the current year.

Zendesk Company Profile (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, 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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