Zendesk (NYSE:ZEN) Rating Increased to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Zendesk (NYSE:ZEN) from a hold rating to a buy rating in a research report report published on Sunday morning, Zacks.com reports. They currently have $103.00 price objective on the software maker’s stock.

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 also recently commented on ZEN. JMP Securities boosted their target price on shares of Wageworks from $43.00 to $60.00 and gave the stock a market outperform rating in a report on Wednesday, May 1st. KeyCorp reiterated a hold rating on shares of Clearwater Paper in a report on Wednesday, May 1st. Jefferies Financial Group boosted their target price on shares of EXACT Sciences from $100.00 to $115.00 and gave the stock a buy rating in a report on Wednesday, May 1st. Bank of America reiterated a buy rating and issued a $105.00 target price (up from $100.00) on shares of Zendesk in a report on Wednesday, May 1st. Finally, Wedbush set a $69.00 target price on shares of Albireo Pharma and gave the stock a buy rating in a report on Thursday, May 23rd. Four research analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the company’s stock. The stock currently has an average rating of Buy and a consensus target price of $92.39.

NYSE ZEN opened at $92.51 on Friday. The company has a debt-to-equity ratio of 1.34, a current ratio of 1.54 and a quick ratio of 1.54. The stock has a 50 day simple moving average of $89.16. Zendesk has a 12 month low of $45.60 and a 12 month high of $94.89. The company has a market cap of $10.19 billion, a P/E ratio of -97.38 and a beta of 1.52.

Zendesk (NYSE:ZEN) last released its earnings results on Tuesday, April 30th. The software maker reported ($0.28) EPS for the quarter, hitting analysts’ consensus estimates of ($0.28). Zendesk had a negative net margin of 22.52% and a negative return on equity of 25.37%. The business had revenue of $181.48 million for the quarter, compared to the consensus estimate of $179.53 million. During the same period in the previous year, the firm earned $0.02 EPS. The business’s revenue for the quarter was up 39.8% on a year-over-year basis. As a group, analysts forecast that Zendesk will post -1.07 EPS for the current year.

In other news, SVP Norman Gennaro sold 753 shares of the business’s stock in a transaction that occurred on Friday, May 17th. The shares were sold at an average price of $88.16, for a total transaction of $66,384.48. Following the sale, the senior vice president now owns 13,382 shares in the company, valued at $1,179,757.12. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Mikkel Svane sold 50,000 shares of the business’s stock in a transaction that occurred on Wednesday, May 15th. The shares were sold at an average price of $85.75, for a total transaction of $4,287,500.00. Following the sale, the chief executive officer now owns 1,424,521 shares in the company, valued at approximately $122,152,675.75. The disclosure for this sale can be found here. Insiders have sold 119,206 shares of company stock worth $10,351,033 in the last 90 days. 4.60% of the stock is owned by company insiders.

Hedge funds have recently added to or reduced their stakes in the company. Flinton Capital Management LLC purchased a new position in Zendesk during the fourth quarter valued at approximately $30,000. Capital Investment Advisory Services LLC purchased a new position in Zendesk during the first quarter valued at approximately $34,000. Sageworth Trust Co purchased a new position in Zendesk during the first quarter valued at approximately $42,000. CWM LLC grew its position in Zendesk by 90.0% during the first quarter. CWM LLC now owns 532 shares of the software maker’s stock valued at $45,000 after purchasing an additional 252 shares in the last quarter. Finally, Sonora Investment Management LLC purchased a new position in Zendesk during the first quarter valued at approximately $51,000. Institutional investors and hedge funds own 97.45% of the company’s stock.

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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