Zendesk Inc. (ZEN) Cut to Hold at Zacks Investment Research
Zendesk Inc. (NYSE:ZEN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Tuesday.
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. “
Other equities research analysts have also recently issued research reports about the stock. Summit Redstone initiated coverage on shares of Zendesk in a research report on Monday, July 18th. They set a “buy” rating and a $34.00 price target for the company. Summit Research reiterated a “buy” rating and set a $34.00 price target on shares of Zendesk in a research report on Monday, July 18th. Morgan Stanley reiterated a “buy” rating on shares of Zendesk in a research report on Sunday, July 17th. Canaccord Genuity reiterated a “buy” rating on shares of Zendesk in a research report on Friday, June 10th. Finally, Stifel Nicolaus initiated coverage on shares of Zendesk in a research report on Monday, July 18th. They set a “hold” rating for the company. Two equities research analysts have rated the stock with a hold rating and sixteen have given a buy rating to the stock. The stock has a consensus rating of “Buy” and an average price target of $32.13.
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Zendesk (NYSE:ZEN) traded up 0.17% during mid-day trading on Tuesday, reaching $29.89. 153,644 shares of the company traded hands. Zendesk has a one year low of $14.39 and a one year high of $31.88. The stock’s 50-day moving average price is $30.36 and its 200-day moving average price is $25.76. The firm’s market cap is $2.80 billion.
Zendesk (NYSE:ZEN) last issued its quarterly earnings results on Tuesday, August 2nd. The company reported ($0.06) EPS for the quarter, topping the consensus estimate of ($0.09) by $0.03. Zendesk had a negative net margin of 37.10% and a negative return on equity of 30.61%. The company earned $74.20 million during the quarter, compared to analysts’ expectations of $72.34 million. During the same quarter in the previous year, the company earned ($0.08) EPS. Zendesk’s revenue was up 53.9% on a year-over-year basis. Analysts forecast that Zendesk will post ($0.04) earnings per share for the current fiscal year.
In other Zendesk news, SVP Adrian Mcdermott sold 4,164 shares of Zendesk stock in a transaction that occurred on Thursday, June 23rd. The shares were sold at an average price of $27.61, for a total value of $114,968.04. Following the transaction, the senior vice president now owns 88,899 shares of the company’s stock, valued at $2,454,501.39. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP John Geschke sold 5,000 shares of Zendesk stock in a transaction that occurred on Friday, August 19th. The shares were sold at an average price of $30.29, for a total transaction of $151,450.00. Following the completion of the transaction, the senior vice president now directly owns 11,175 shares in the company, valued at approximately $338,490.75. The disclosure for this sale can be found here. 17.00% of the stock is currently owned by company insiders.
A number of hedge funds and other institutional investors have recently made changes to their positions in ZEN. Wellington Management Group LLP raised its position in shares of Zendesk by 348.6% in the first quarter. Wellington Management Group LLP now owns 4,370,342 shares of the company’s stock worth $91,471,000 after buying an additional 3,396,128 shares during the last quarter. Hunt Lane Capital LP raised its position in shares of Zendesk by 1,046.8% in the first quarter. Hunt Lane Capital LP now owns 1,422,000 shares of the company’s stock worth $29,762,000 after buying an additional 1,298,000 shares during the last quarter. Franklin Resources Inc. raised its position in shares of Zendesk by 48.9% in the first quarter. Franklin Resources Inc. now owns 3,881,877 shares of the company’s stock worth $81,248,000 after buying an additional 1,275,008 shares during the last quarter. 1832 Asset Management L.P. bought a new position in shares of Zendesk during the second quarter worth $38,715,000. Finally, Lord Abbett & CO. LLC raised its position in shares of Zendesk by 75.6% in the second quarter. Lord Abbett & CO. LLC now owns 1,534,612 shares of the company’s stock worth $40,483,000 after buying an additional 660,662 shares during the last quarter. 83.64% of the stock is currently owned by hedge funds and other institutional investors.
Zendesk, Inc is a software development company. The Company provides software as a service (SaaS) customer service platform. The Company’s platform consolidates the data from customer interactions and provides organizations with analytics and performance benchmarking. The Company also provides SaaS live chat software that can be utilized independently to facilitate communications between organizations and their customers.
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