Wolfe Research slashes price target on Zendesk Inc. [ZEN] – find out why.

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Zendesk Inc. [NYSE: ZEN] price plunged by -1.90 percent to reach at -$1.88. The company report on May 11, 2022 that Zendesk Ushers in Era of Conversational CRM.

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A sum of 7092213 shares traded at recent session while its average daily volume was at 2.10M shares. Zendesk Inc. shares reached a high of $99.44 and dropped to a low of $91.285 until finishing in the latest session at $96.99.

The one-year ZEN stock forecast points to a potential upside of 32.56. The average equity rating for ZEN stock is currently 2.20, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on Zendesk Inc. [ZEN]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ZEN shares is $143.82 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ZEN stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Wolfe Research have made an estimate for Zendesk Inc. shares, keeping their opinion on the stock as Peer Perform, with their previous recommendation back on February 14, 2022. While these analysts kept the previous recommendation, Cowen dropped their target price from $140 to $115. The new note on the price target was released on November 19, 2021, representing the official price target for Zendesk Inc. stock. On October 29, 2021, analysts decreased their price target for ZEN shares from 160 to 130.

The Average True Range (ATR) for Zendesk Inc. is set at 5.81, with the Price to Sales ratio for ZEN stock in the period of the last 12 months amounting to 8.60. The Price to Book ratio for the last quarter was 36.19, with the Price to Cash per share for the same quarter was set at 8.67. Price to Free Cash Flow for ZEN in the course of the last twelve months was 96.07 with Quick ratio for the last quarter at 1.60.

ZEN Stock Performance Analysis:

Zendesk Inc. [ZEN] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -17.62. With this latest performance, ZEN shares dropped by -21.39% in over the last four-week period, additionally sinking by -3.63% over the last 6 months – not to mention a drop of -25.77% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ZEN stock in for the last two-week period is set at 25.36, with the RSI for the last a single of trading hit 18.87, and the three-weeks RSI is set at 31.10 for Zendesk Inc. [ZEN]. The present Moving Average for the last 50 days of trading for this stock 118.59, while it was recorded at 101.92 for the last single week of trading, and 113.11 for the last 200 days.

Insight into Zendesk Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Zendesk Inc. [ZEN] shares currently have an operating margin of -12.25 and a Gross Margin at +79.50. Zendesk Inc.’s Net Margin is presently recorded at -16.67.

Return on Equity for this stock declined to -48.56, with Return on Assets sitting at -9.71.

Zendesk Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.60 and a Current Ratio set at 1.60.

ZEN Stock EPS

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ZEN. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Zendesk Inc. go to 33.01%.

Zendesk Inc. [ZEN] Insider Position Details

There are presently around $12,159 million, or 99.48% of ZEN stock, in the hands of institutional investors. The top three institutional holders of ZEN stocks are: CAPITAL WORLD INVESTORS with ownership of 14,666,370, which is approximately 47.802% of the company’s market cap and around 0.90% of the total institutional ownership; VANGUARD GROUP INC, holding 11,461,432 shares of the stock with an approximate value of $1.13 billion in ZEN stocks shares; and BLACKROCK INC., currently with $665.89 million in ZEN stock with ownership of nearly 1.911% of the company’s market capitalization.

Positions in Zendesk Inc. stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 259 institutional holders increased their position in Zendesk Inc. [NYSE:ZEN] by around 33,990,380 shares. Additionally, 244 investors decreased positions by around 20,783,652 shares, while 59 investors held positions by with 68,207,280 shares. The mentioned changes placed institutional holdings at 122,981,312 shares, according to the latest SEC report filing. ZEN stock had 93 new institutional investments in for a total of 16,335,182 shares, while 83 institutional investors sold positions of 2,527,879 shares during the same period.