Zendesk Inc (ZEN) Receives $77.44 Average PT from Analysts

Shares of Zendesk Inc (NYSE:ZEN) have earned a consensus recommendation of “Buy” from the twenty-one brokerages that are currently covering the stock, MarketBeat reports. Four research analysts have rated the stock with a hold recommendation, sixteen have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price target among brokerages that have covered the stock in the last year is $78.09.

Several equities analysts recently issued reports on the company. Zacks Investment Research raised Zendesk from a “hold” rating to a “buy” rating and set a $65.00 target price on the stock in a research note on Sunday, January 6th. Wedbush assumed coverage on Zendesk in a research note on Thursday, December 6th. They set an “outperform” rating and a $71.00 target price on the stock. Canaccord Genuity increased their target price on Zendesk from $65.00 to $85.00 and gave the stock a “buy” rating in a research note on Wednesday, February 6th. Craig Hallum increased their target price on Zendesk from $68.00 to $84.00 and gave the stock a “buy” rating in a research note on Wednesday, February 6th. Finally, Cowen increased their target price on Zendesk from $72.00 to $88.00 and gave the stock an “outperform” rating in a research note on Wednesday, February 6th.

In other Zendesk news, insider Adrian Mcdermott sold 2,241 shares of the company’s stock in a transaction dated Thursday, January 17th. The stock was sold at an average price of $63.11, for a total transaction of $141,429.51. Following the sale, the insider now owns 80,267 shares in the company, valued at approximately $5,065,650.37. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Mikkel Svane sold 50,000 shares of the company’s stock in a transaction dated Tuesday, February 19th. The stock was sold at an average price of $78.61, for a total value of $3,930,500.00. Following the sale, the chief executive officer now owns 1,470,029 shares in the company, valued at approximately $115,558,979.69. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 116,656 shares of company stock worth $8,684,061. 4.70% of the stock is owned by company insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of ZEN. FIL Ltd purchased a new stake in Zendesk during the 3rd quarter worth about $87,586,000. Alliancebernstein L.P. increased its holdings in Zendesk by 683.9% during the 3rd quarter. Alliancebernstein L.P. now owns 1,070,764 shares of the software maker’s stock worth $76,024,000 after purchasing an additional 934,164 shares during the period. Norges Bank purchased a new stake in Zendesk during the 4th quarter worth about $54,056,000. Westfield Capital Management Co. LP increased its holdings in Zendesk by 97.9% during the 4th quarter. Westfield Capital Management Co. LP now owns 1,498,026 shares of the software maker’s stock worth $87,440,000 after purchasing an additional 741,013 shares during the period. Finally, Macquarie Group Ltd. increased its holdings in shares of Zendesk by 389.1% in the 4th quarter. Macquarie Group Ltd. now owns 863,145 shares of the software maker’s stock valued at $50,382,000 after acquiring an additional 686,660 shares during the last quarter. Institutional investors own 95.68% of the company’s stock.

ZEN traded down $2.82 during mid-day trading on Thursday, hitting $82.82. 1,590,277 shares of the stock were exchanged, compared to its average volume of 1,956,946. Zendesk has a 1-year low of $44.42 and a 1-year high of $86.13. The company has a current ratio of 1.67, a quick ratio of 1.67 and a debt-to-equity ratio of 1.10. The firm has a market cap of $8.97 billion, a price-to-earnings ratio of -87.18 and a beta of 1.66.

Zendesk (NYSE:ZEN) last posted its earnings results 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 firm had revenue of $172.25 million for the quarter, compared to analyst estimates of $165.56 million. During the same quarter in the prior year, the company earned ($0.01) EPS. Zendesk’s revenue was up 41.3% on a year-over-year basis. On average, research analysts forecast that Zendesk will post -0.96 earnings per share for the current year.

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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Analyst Recommendations for Zendesk (NYSE:ZEN)

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