Zendesk (NYSE:ZEN) Cut to Strong Sell at Zacks Investment Research

Zacks Investment Research lowered shares of Zendesk (NYSE:ZENGet Rating) from a hold rating to a strong sell rating in a research report released on Thursday, 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. “

ZEN has been the subject of a number of other reports. UBS Group lifted their price target on shares of Zendesk from $117.00 to $128.00 in a research report on Friday, February 11th. Piper Sandler lifted their price target on shares of Zendesk from $112.00 to $135.00 and gave the company a neutral rating in a research report on Friday, February 11th. Wolfe Research downgraded shares of Zendesk from an outperform rating to a peer perform rating and set a $130.00 price target for the company. in a research report on Sunday, February 13th. Finally, StockNews.com started coverage on shares of Zendesk in a research report on Thursday, March 31st. They set a hold rating for the company. One analyst has rated the stock with a sell rating, seven have given a hold rating and six have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, Zendesk has a consensus rating of Hold and a consensus price target of $134.30.

Shares of ZEN opened at $125.17 on Thursday. Zendesk has a twelve month low of $87.90 and a twelve month high of $155.62. The stock’s 50 day moving average is $117.26 and its two-hundred day moving average is $109.14. The company has a quick ratio of 1.56, a current ratio of 1.56 and a debt-to-equity ratio of 2.00.

Zendesk (NYSE:ZENGet Rating) last announced its quarterly earnings data on Thursday, February 10th. The software maker reported ($0.30) earnings per share for the quarter, missing the Zacks’ consensus estimate of ($0.25) by ($0.05). Zendesk had a negative net margin of 16.71% and a negative return on equity of 30.17%. The business had revenue of $375.37 million during the quarter, compared to analysts’ expectations of $369.81 million. During the same period in the prior year, the firm posted ($0.34) EPS. Zendesk’s revenue for the quarter was up 32.4% compared to the same quarter last year. As a group, analysts anticipate that Zendesk will post -0.97 earnings per share for the current fiscal year.

In other Zendesk news, CTO Adrian Mcdermott sold 9,727 shares of Zendesk stock in a transaction that occurred on Tuesday, February 1st. The shares were sold at an average price of $99.44, for a total value of $967,252.88. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Mikkel Svane sold 43,875 shares of Zendesk stock in a transaction that occurred on Tuesday, January 18th. The stock was sold at an average price of $97.70, for a total transaction of $4,286,587.50. The disclosure for this sale can be found here. Insiders have sold a total of 131,074 shares of company stock valued at $14,225,484 over the last 90 days. Insiders own 3.60% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Penserra Capital Management LLC grew its stake in shares of Zendesk by 25.5% during the 4th quarter. Penserra Capital Management LLC now owns 531 shares of the software maker’s stock valued at $55,000 after buying an additional 108 shares during the period. IFP Advisors Inc grew its stake in shares of Zendesk by 9.9% during the 4th quarter. IFP Advisors Inc now owns 1,282 shares of the software maker’s stock valued at $132,000 after buying an additional 116 shares during the period. Signaturefd LLC boosted its position in Zendesk by 11.1% during the 4th quarter. Signaturefd LLC now owns 1,245 shares of the software maker’s stock worth $130,000 after purchasing an additional 124 shares during the period. Quadrant Capital Group LLC boosted its position in Zendesk by 102.3% during the 4th quarter. Quadrant Capital Group LLC now owns 259 shares of the software maker’s stock worth $27,000 after purchasing an additional 131 shares during the period. Finally, AE Wealth Management LLC boosted its position in Zendesk by 8.5% during the 3rd quarter. AE Wealth Management LLC now owns 1,951 shares of the software maker’s stock worth $227,000 after purchasing an additional 153 shares during the period. 94.91% of the stock is owned by institutional investors.

Zendesk Company Profile (Get Rating)

Zendesk, Inc engages in the provision of customer service platform which enables companies to provide customer support. Its products and services include support; guide; chat; talk; message; inbox team email; explore; connect plus outbound; integrations and apps; embeddables; insights and analytics; and products update.

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