Zendesk (ZEN) Lifted 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 report issued on Saturday, Zacks.com reports. They currently have $93.00 price target 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. “

Several other brokerages also recently weighed in on ZEN. KeyCorp reaffirmed a buy rating on shares of Zendesk in a research note on Tuesday, February 5th. Bank of America upped their target price on Zendesk from $68.00 to $86.00 and gave the stock a buy rating in a research note on Wednesday, February 6th. Royal Bank of Canada upped their target price on Zendesk to $90.00 and gave the stock an outperform rating in a research note on Wednesday, February 6th. Cowen upped 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. Finally, Deutsche Bank upped their target price on Zendesk to $88.00 and gave the stock a buy rating in a research note on Wednesday, February 6th. Three investment analysts have rated the stock with a hold rating, seventeen have assigned a buy rating and one has assigned a strong buy rating to the company. Zendesk currently has an average rating of Buy and a consensus target price of $79.14.

Shares of ZEN stock opened at $83.22 on Friday. The company has a debt-to-equity ratio of 1.10, a current ratio of 1.67 and a quick ratio of 1.67. The company has a market cap of $9.13 billion, a PE ratio of -87.60 and a beta of 1.66. Zendesk has a 1-year low of $45.60 and a 1-year high of $86.85.

Zendesk (NYSE:ZEN) last announced its earnings results on Tuesday, February 5th. The software maker reported $0.10 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.28) by $0.38. The business had revenue of $172.25 million during the quarter, compared to the consensus estimate of $165.56 million. Zendesk had a negative return on equity of 24.19% and a negative net margin of 21.89%. The business’s quarterly revenue was up 41.3% on a year-over-year basis. During the same period in the prior year, the company posted ($0.01) EPS. On average, sell-side analysts forecast that Zendesk will post -0.96 earnings per share for the current fiscal year.

In related news, insider Adrian Mcdermott sold 2,241 shares of the business’s stock in a transaction that occurred on Thursday, January 17th. The stock was sold at an average price of $63.11, for a total transaction of $141,429.51. Following the completion of the sale, the insider now directly owns 80,267 shares in the company, valued at $5,065,650.37. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CMO Jeffrey J. Titterton sold 472 shares of the business’s stock in a transaction that occurred on Thursday, January 17th. The stock was sold at an average price of $63.11, for a total value of $29,787.92. Following the sale, the chief marketing officer now owns 12,775 shares of the company’s stock, valued at $806,230.25. The disclosure for this sale can be found here. Insiders have sold 90,070 shares of company stock valued at $7,004,303 over the last quarter. 4.70% of the stock is owned by company insiders.

Institutional investors and hedge funds have recently modified their holdings of the stock. Sageworth Trust Co purchased a new stake in Zendesk in the 1st quarter valued at $42,000. Flinton Capital Management LLC purchased a new stake in Zendesk in the 4th quarter valued at $30,000. Intercontinental Wealth Advisors LLC purchased a new stake in Zendesk in the 4th quarter valued at $34,000. Sonora Investment Management LLC purchased a new stake in Zendesk in the 1st quarter valued at $51,000. Finally, Ipswich Investment Management Co. Inc. purchased a new stake in Zendesk in the 4th quarter valued at $41,000. Hedge funds and other institutional investors own 96.55% 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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