Zendesk, Inc. (NYSE:ZEN) Short Interest Up 43.3% in July

Zendesk, Inc. (NYSE:ZEN – Get Rating) saw significant growth in short-term interest in July. As of July 15, there were short interests totaling 11,940,000 shares, a growth of 43.3% from the total of 8,330,000 shares as of June 30. Based on an average daily volume of 4,140,000 shares, the day-to-cover ratio is currently 2.9 days.

Analyst upgrades and downgrades

Several stock analysts have weighed in on the company recently. Barclays reiterated an “equal weight” rating and issued a price target of $78.00 (vs. $170.00) on Zendesk shares in a Tuesday, June 28 research report. Cowen reduced his price target on Zendesk to $77.50 in a Monday, July 4 research report. William Blair upgraded Zendesk from an “outperforming” rating to a “market performing” rating in a Tuesday, July 26 research report. Piper Sandler lowered her price target on Zendesk from $140.00 to $77.50 and set a “neutral” rating for the company in a Monday, July 18 research note. Finally, JMP Securities downgraded Zendesk from an “outperform” rating to a “market performance” rating in a Tuesday, July 26 research note. Fifteen investment analysts gave the stock a hold rating and two gave the company a buy rating. According to data from MarketBeat, Zendesk currently has an average rating of “Hold” and a consensus price target of $95.69.

Insider activity

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Separately, CTO Adrian Mcdermott sold 9,761 shares in a trade that took place on Monday, May 2. The stock was sold at an average price of $120.25, for a total transaction of $1,173,760.25. Following the completion of the sale, the chief technology officer now directly owns 92,760 shares of the company, valued at $11,154,390. The sale was disclosed in a document filed with the Securities & Exchange Commission, accessible via this hyperlink. In other Zendesk news, insider Norman Gennaro sold 7,000 shares of the company in a trade on Friday, June 24. The stock was sold at an average price of $75.50, for a total value of $528,500.00. Following the completion of the sale, the insider now directly owns 29,813 shares of the company, valued at $2,250,881.50. The transaction was disclosed in a document filed with the Securities & Exchange Commission, accessible via this link. Additionally, CTO Adrian Mcdermott sold 9,761 shares of the company in a trade on Monday, May 2. The stock was sold at an average price of $120.25, for a total value of $1,173,760.25. Following the completion of the sale, the chief technology officer now directly owns 92,760 shares of the company, valued at $11,154,390. The disclosure of this sale can be found here. Insiders sold 31,003 shares of the company worth $2,952,996 in the past 90 days. 2.92% of the shares are currently held by insiders.

Institutional entries and exits

A number of hedge funds have been buying and selling shares of ZEN recently. Capital World Investors increased its stake in Zendesk by 47.8% during the 4th quarter. Capital World Investors now owns 14,666,370 shares of the software maker valued at $1,529,556,000 after purchasing an additional 4,743,356 shares during the period. Contour Asset Management LLC increased its stake in Zendesk by 1,238.0% during the 4th quarter. Contour Asset Management LLC now owns 1,441,826 shares of the software maker valued at $150,368,000 after purchasing an additional 1,334,069 shares during the period. Third Point LLC bought a new position in Zendesk during Q4 worth approximately $136,036,000. Spyglass Capital Management LLC purchased a new position in Zendesk during Q4 worth approximately $118,690,000. Finally, Neuberger Berman Group LLC increased its stake in Zendesk by 900.6% during the 1st quarter. Neuberger Berman Group LLC now owns 807,818 shares of the software maker valued at $97,172,000 after purchasing an additional 727,082 shares during the period. Hedge funds and other institutional investors own 98.72% of the company’s shares.

Zendesk trades up 0.4%

Shares of ZEN rose $0.31 during Friday trading hours, hitting $75.42. The company had a trading volume of 2,565,856 shares, compared to an average volume of 3,003,555. The company has a market capitalization of $9.30 billion, a P/E ratio of -37.71 and a beta of 1.04. The stock’s 50-day moving average price is $75.54 and its 200-day moving average price is $99.51. The company has a quick ratio of 1.62, a current ratio of 1.62 and a debt ratio of 3.47. Zendesk has a 52-week low of $54.16 and a 52-week high of $143.31.

Zendesk (NYSE:ZEN – Get Rating) last released its quarterly earnings data on Thursday, July 28. The software maker reported EPS of $0.14 for the quarter, beating the consensus estimate of $0.11 by $0.03. The company posted revenue of $407.21 million for the quarter, versus a consensus estimate of $404.68 million. Zendesk had a negative return on equity of 36.18% and a negative net margin of 16.91%. The company’s quarterly revenue increased 28.0% year over year. In the same quarter of the previous year, the company had earned a profit per share of ($0.35). On average, research analysts predict Zendesk to post -1.06 EPS for the current year.

About Zendesk

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Zendesk, Inc, a software development company, provides software as a service solutions for organizations in the United States, Europe, the Middle East, Africa, Asia-Pacific and internationally. Its flagship product is Zendesk Support, a system for tracking, prioritizing, and resolving customer support tickets across different channels.

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