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Zendesk (NYSE:ZEN) Upgraded to "Buy" at Zacks Investment Research

Last updated on Saturday, August 1st, 2020 by MarketBeat

Zendesk (NYSE:ZEN) was upgraded by Zacks Investment Research from a "hold" rating to a "buy" rating in a report issued on Saturday, Zacks.com reports. The brokerage currently has a $113.00 price objective on the software maker's stock. Zacks Investment Research's price objective indicates a potential upside of 23.97% from the stock's previous close.

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 topic of several other reports. Canaccord Genuity boosted their price target on shares of Zendesk from $85.00 to $95.00 and gave the stock a "buy" rating in a research report on Tuesday, June 16th. Citigroup started coverage on shares of Zendesk in a research report on Thursday, July 16th. They issued a "neutral" rating and a $100.00 price target on the stock. Wedbush cut shares of Zendesk from an "outperform" rating to a "neutral" rating in a research report on Wednesday, April 22nd. Goldman Sachs Group boosted their price target on shares of Zendesk from $96.00 to $113.00 in a research report on Monday, June 29th. Finally, Oppenheimer boosted their price target on shares of Zendesk from $80.00 to $95.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 15th. Six analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the stock. The stock presently has a consensus rating of "Buy" and a consensus target price of $99.75.

Shares of NYSE ZEN traded down $9.37 during midday trading on Friday, reaching $91.15. 6,426,486 shares of the company traded hands, compared to its average volume of 1,896,273. Zendesk has a 52 week low of $50.23 and a 52 week high of $101.94. The stock has a 50-day moving average price of $88.52 and a 200 day moving average price of $79.73. The company has a debt-to-equity ratio of 1.28, a current ratio of 1.44 and a quick ratio of 1.44. The company has a market cap of $10.41 billion, a price-to-earnings ratio of -58.06 and a beta of 1.33.

Zendesk (NYSE:ZEN) last issued its quarterly earnings data on Thursday, July 30th. The software maker reported $0.14 earnings per share for the quarter, beating analysts' consensus estimates of ($0.20) by $0.34. Zendesk had a negative net margin of 19.24% and a negative return on equity of 22.07%. The business had revenue of $246.66 million for the quarter, compared to analysts' expectations of $239.82 million. As a group, analysts expect that Zendesk will post -0.76 EPS for the current year.

In related news, CMO Jeffrey J. Titterton sold 7,000 shares of the business's stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $75.26, for a total value of $526,820.00. Following the completion of the sale, the chief marketing officer now directly owns 15,439 shares in the company, valued at approximately $1,161,939.14. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Carl Bass sold 9,668 shares of the business's stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $77.18, for a total value of $746,176.24. Following the completion of the sale, the director now owns 11,468 shares of the company's stock, valued at $885,100.24. The disclosure for this sale can be found here. In the last three months, insiders sold 142,594 shares of company stock valued at $11,218,424. 4.30% of the stock is currently owned by company insiders.

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Flagship Harbor Advisors LLC lifted its holdings in Zendesk by 7.1% in the 2nd quarter. Flagship Harbor Advisors LLC now owns 1,814 shares of the software maker's stock worth $160,000 after purchasing an additional 121 shares during the last quarter. Signaturefd LLC lifted its holdings in Zendesk by 13.1% in the 2nd quarter. Signaturefd LLC now owns 1,114 shares of the software maker's stock worth $99,000 after purchasing an additional 129 shares during the last quarter. Guggenheim Capital LLC lifted its holdings in Zendesk by 1.7% in the 1st quarter. Guggenheim Capital LLC now owns 8,098 shares of the software maker's stock worth $519,000 after purchasing an additional 132 shares during the last quarter. Virginia Retirement Systems ET AL lifted its holdings in Zendesk by 0.9% in the 1st quarter. Virginia Retirement Systems ET AL now owns 21,600 shares of the software maker's stock worth $1,383,000 after purchasing an additional 200 shares during the last quarter. Finally, Ellevest Inc. lifted its holdings in Zendesk by 346.5% in the 1st quarter. Ellevest Inc. now owns 384 shares of the software maker's stock worth $25,000 after purchasing an additional 298 shares during the last quarter. Hedge funds and other institutional investors own 98.84% of the company's stock.

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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