Zacks Investment Research Upgrades Zendesk (NYSE:ZEN) to “Buy”

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Zendesk (NYSE:ZEN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Sunday, Zacks.com reports. The brokerage presently has a $103.00 target price on the software maker’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 10.36% from the stock’s current price.

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 equities analysts have also recently commented on the stock. JMP Securities boosted their price target on shares of Wageworks from $43.00 to $60.00 and gave the stock a “market outperform” rating in a research note on Wednesday, May 1st. Deutsche Bank upped their price objective on shares of Welltower from $61.00 to $71.00 and gave the company a “hold” rating in a research note on Friday, March 29th. Jefferies Financial Group upped their price objective on shares of EXACT Sciences from $100.00 to $115.00 and gave the company a “buy” rating in a research note on Wednesday, May 1st. Canaccord Genuity upped their price objective on shares of TELUS from C$51.00 to C$52.00 in a research note on Wednesday, May 1st. Finally, Morgan Stanley upped their price target on shares of Zendesk from $97.00 to $102.00 and gave the company an “overweight” rating in a report on Wednesday, May 1st. Four analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and an average target price of $92.39.

Zendesk stock opened at $93.33 on Friday. The business’s 50 day moving average price is $89.01. The company has a quick ratio of 1.54, a current ratio of 1.54 and a debt-to-equity ratio of 1.34. The company has a market cap of $10.27 billion, a price-to-earnings ratio of -98.24 and a beta of 1.52. Zendesk has a 1-year low of $45.60 and a 1-year high of $94.89.

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

In related news, CFO Elena Gomez sold 5,500 shares of the stock in a transaction dated Monday, April 22nd. The shares were sold at an average price of $80.87, for a total transaction of $444,785.00. Following the sale, the chief financial officer now directly owns 27,316 shares of the company’s stock, valued at approximately $2,209,044.92. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Adrian Mcdermott sold 446 shares of the stock in a transaction dated Thursday, May 16th. The shares were sold at an average price of $87.09, for a total transaction of $38,842.14. Following the sale, the insider now directly owns 81,464 shares in the company, valued at $7,094,699.76. The disclosure for this sale can be found here. Insiders have sold a total of 120,462 shares of company stock worth $10,454,038 over the last three months. 4.60% of the stock is currently owned by insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Flinton Capital Management LLC bought a new stake in Zendesk during the 4th quarter worth approximately $30,000. Capital Investment Advisory Services LLC bought a new stake in Zendesk during the 1st quarter worth approximately $34,000. Sageworth Trust Co bought a new stake in Zendesk during the 1st quarter worth approximately $42,000. CWM LLC raised its stake in Zendesk by 90.0% during the 1st quarter. CWM LLC now owns 532 shares of the software maker’s stock worth $45,000 after acquiring an additional 252 shares during the period. Finally, Sonora Investment Management LLC bought a new stake in shares of Zendesk during the first quarter valued at approximately $51,000. 97.45% of the stock is currently owned by hedge funds and other 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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