Will Zendesk, Inc. (NYSE:ZEN) rip to new highs anytime soon? Who knows, but much of it depends on what analysts believe and what action the company’s insiders pursue. The stock closed higher on 08 February. The shares accumulated 3.11 points or 4.24 percent at $76.38 with a heavy trade volume of 3.155 million shares. After opening the session at $72.7, the shares went as high as $76.41 and as low as $72.25, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $8.11 billion and now has 106.14 million shares outstanding. Zendesk, Inc. (ZEN) stock has gained 22.09 percent of market value in 21 trading days.
ZEN stock has a trailing 3-year beta of 1.62, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$1.24 a share in the trailing twelve months. The stock’s value has surged 30.85 percent year to date (YTD) against a rise of 88.73 percent in 12 month’s time. The company’s shares still trade -3.13 percent away from its 1-year high of $78.85 and 102.01 percent up from 52-week low of $37.81. The average consensus rating on the company is 1.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.
Zendesk, Inc. (ZEN) will probably climb -6.13 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $92 price as 12-month high target. This represents a whopping 20.45 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $86, which represents a return potential of 12.59 percent when compared to the closing price of the stock of $76.38 on Friday, February 08. The lowest price target for the stock is $75 — slightly more than -1.81 percent from ZEN’s current share price.
History has shown that shares in Zendesk, Inc. have gone up on 14 different earnings reaction days and are predicted to add 0.08 percent when the company reports upcoming earnings. Investors will get their next glimpse of ZEN’s Q1 earnings on April 30. Analysts are forecasting revenue to climb 34.2 percent to $166M in the fiscal first quarter, while earnings are seen soaring by nearly -400 percent to $0.03 per share. It earned $0.09 per share, better than the $0.04, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $172M, better than the $166M analysts expected. Earnings are estimated to increase by 8.3 percent this year, 131.58 percent next year and continue to increase by 51 percent annually for the next 5 years.
Let’s take a look at some insider activity at Zendesk, Inc. (NYSE:ZEN) and see the pattern. The earliest insider trade took place on 02/04/2019. Gomez Elena parted with a total of 2 thousand shares of company at average share price of $70. The total for the sales was set at $140 thousand. After this transaction, the CFO account balance stood at 24.33 thousand shares. The stock grew 9.11 percent since that insider sale. On 01/23/2019, Gomez Elena, CFO, sold 0.5 thousand shares at a price per share of $65. This removed 32.5 thousand shares from the insider’s fortune and the stock saw a 17.51 percent rally in value since the news became public. This transaction left 24.33 thousand shares in the CFO account.
On 01/18/2019, CFO Gomez Elena performed a sale transaction worth $97.5 thousand. This sale at $65 each has eliminated 1.5 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 17.51 percent increase since the transaction was reported. The insider now is left with 24.83 thousand shares remaining in the account. Mcdermott Adrian, who performs the President of Products job, sold 2.24 thousand shares for $141.43 thousand. The disposal occurred on 01/17/2019 was priced at $63.11 per share. The share price soared 21.03 percent since the reporting date. Mcdermott Adrian now left with a stake of 80.27 thousand ZEN stock worth $6.13 million after the insider selling.
The stock is currently hovering around the first support level of $73.62. Below this, the next support is placed in the zone of $70.85. Till the time, the ZEN stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 79.57 on daily chart, which may remain a cause for concern. If the price breaks below $70.85 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $77.78 mark may result into a pull-back move towards $79.17 level.
Further, it is sporting a 13.54 on the Price-to-Sales ratio. Compare this with the industry average P/S of 8531.25. 69.7 percent is the gross profit margin for Zendesk, Inc. and operating margin sits at -20.1 percent. Along with this, the net profit margin is -19.1 percent.