Zendesk (ZEN) Downgraded by Zacks Investment Research to Hold

Zacks Investment Research cut shares of Zendesk (NYSE:ZEN) from a buy rating to a hold rating in a research note released on Saturday morning, Zacks.com reports.

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 firms have also commented on ZEN. Deutsche Bank increased their price target on Zendesk from $88.00 to $94.00 and gave the stock a buy rating in a research report on Friday, March 29th. Cowen increased their price target on Zendesk from $72.00 to $88.00 and gave the stock an outperform rating in a research report on Wednesday, February 6th. Jefferies Financial Group increased their price target on Zendesk to $90.00 and gave the stock a buy rating in a research report on Wednesday, February 6th. Bank of America increased their price target on Zendesk from $68.00 to $86.00 and gave the stock a buy rating in a research report on Wednesday, February 6th. Finally, Craig Hallum increased their price target on Zendesk from $68.00 to $84.00 and gave the stock a buy rating in a research report on Wednesday, February 6th. Four analysts have rated the stock with a hold rating, sixteen have given a buy rating and one has given a strong buy rating to the company. Zendesk currently has an average rating of Buy and an average price target of $78.99.

ZEN stock opened at $80.90 on Friday. Zendesk has a 1-year low of $45.60 and a 1-year high of $86.85. The company has a debt-to-equity ratio of 1.10, a quick ratio of 1.67 and a current ratio of 1.67.

Zendesk (NYSE:ZEN) last released its quarterly earnings data on Tuesday, February 5th. The software maker reported $0.10 earnings per share for the quarter, beating the 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 company had revenue of $172.25 million for the quarter, compared to analyst estimates of $165.56 million. During the same period in the prior year, the company posted ($0.01) EPS. The company’s revenue was up 41.3% compared to the same quarter last year. As a group, equities research analysts predict that Zendesk will post -0.96 earnings per share for the current year.

In other news, SVP Norman Gennaro sold 753 shares of the stock in a transaction on Wednesday, April 17th. The stock was sold at an average price of $82.01, for a total value of $61,753.53. Following the transaction, the senior vice president now owns 12,309 shares of the company’s stock, valued at approximately $1,009,461.09. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Mikkel Svane sold 50,000 shares of the stock in a transaction on Tuesday, February 19th. The shares were sold at an average price of $78.61, for a total value of $3,930,500.00. Following the completion of the transaction, the chief executive officer now directly 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 three months, insiders sold 89,613 shares of company stock worth $7,047,065. 4.70% of the stock is currently owned by company insiders.

Several hedge funds have recently bought and sold shares of ZEN. Flinton Capital Management LLC acquired a new position in shares of Zendesk in the 4th quarter valued at $30,000. Intercontinental Wealth Advisors LLC acquired a new position in shares of Zendesk in the 4th quarter valued at $34,000. Ipswich Investment Management Co. Inc. acquired a new position in shares of Zendesk in the 4th quarter valued at $41,000. Sageworth Trust Co acquired a new position in shares of Zendesk in the 1st quarter valued at $42,000. Finally, Sonora Investment Management LLC acquired a new position in shares of Zendesk in the 1st quarter valued at $51,000. 96.55% of the stock is currently owned by institutional investors.

About Zendesk

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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