Zendesk Inc. [ZEN] Revenue clocked in at $1.43 billion, down -28.46% YTD: What’s Next?



Zendesk Inc. [NYSE: ZEN] loss -0.85% on the last trading session, reaching $74.61 price per share at the time. The company report on July 19, 2022 that Zendesk Announces Date of Second Quarter 2022 Financial Results.

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Zendesk, Inc. (NYSE: ZEN) today announced that it will release financial results for the second fiscal quarter ending June 30, 2022 following the close of the U.S. markets on Thursday, July 28, 2022.

As a result of the previously announced definitive merger agreement under which an investor group led by Hellman & Friedman and Permira will acquire all outstanding shares of Zendesk common stock in an all-cash transaction, Zendesk will not conduct an earnings conference call. Any further material information relevant to the transaction will be provided in subsequent press releases or public filings with the Securities and Exchange Commission.

Zendesk Inc. represents 121.96 million in outstanding shares, while the company has a total market value of $9.22 billion with the latest information. ZEN stock price has been found in the range of $74.51 to $75.00.

If compared to the average trading volume of 4.16M shares, ZEN reached a trading volume of 7670891 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about 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 $99.30 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 2.60. 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.

William Blair have made an estimate for Zendesk Inc. shares, keeping their opinion on the stock as Mkt Perform, with their previous recommendation back on July 26, 2022. The new note on the price target was released on July 26, 2022, representing the official price target for Zendesk Inc. stock. On June 13, 2022, analysts decreased their price target for ZEN shares from 145 to 80.

The Average True Range (ATR) for Zendesk Inc. is set at 1.35, with the Price to Sales ratio for ZEN stock in the period of the last 12 months amounting to 6.45. The Price to Book ratio for the last quarter was 27.84, with the Price to Cash per share for the same quarter was set at 8.89. Price to Free Cash Flow for ZEN in the course of the last twelve months was 72.05 with Quick ratio for the last quarter at 1.60.

Trading performance analysis for ZEN stock

Zendesk Inc. [ZEN] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.48. With this latest performance, ZEN shares gained by 0.59% in over the last four-week period, additionally sinking by -22.09% over the last 6 months – not to mention a drop of -50.31% 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 47.78, with the RSI for the last a single of trading hit 52.56, and the three-weeks RSI is set at 44.29 for Zendesk Inc. [ZEN]. The present Moving Average for the last 50 days of trading for this stock 78.34, while it was recorded at 75.15 for the last single week of trading, and 102.07 for the last 200 days.

Zendesk Inc. [ZEN]: A deeper dive into fundamental analysis

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.

Zendesk Inc. [ZEN]: An earnings per share (EPS) analysis

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%.

An analysis of insider ownership at Zendesk Inc. [ZEN]

There are presently around $8,961 million, or 95.10% of ZEN stock, in the hands of institutional investors. The top three institutional holders of ZEN stocks are: VANGUARD GROUP INC with ownership of 11,422,352, which is approximately -0.341% of the company’s market cap and around 1.00% of the total institutional ownership; CAPITAL WORLD INVESTORS, holding 11,261,323 shares of the stock with an approximate value of $847.41 million in ZEN stocks shares; and JANUS HENDERSON GROUP PLC, currently with $562.66 million in ZEN stock with ownership of nearly 29.068% of the company’s market capitalization.

Positions in Zendesk Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 261 institutional holders increased their position in Zendesk Inc. [NYSE:ZEN] by around 17,149,405 shares. Additionally, 233 investors decreased positions by around 18,303,075 shares, while 64 investors held positions by with 83,627,699 shares. The mentioned changes placed institutional holdings at 119,080,179 shares, according to the latest SEC report filing. ZEN stock had 93 new institutional investments in for a total of 5,381,724 shares, while 66 institutional investors sold positions of 3,409,999 shares during the same period.