How Zendesk Inc. (ZEN) Is Doing Technically?

The stock of Zendesk Inc. (NYSE:ZEN) increased by increased by $1.2 on Friday to finish at $135.23, up 0.90 percent. The last five days have seen an average of 1,428,920 shares of common stock traded. 8 times new highs were reached in the current year, with a fall of -$7.89. The average number of shares traded over the last 20 days was 1,404,550, while the average volume over the last 50 days totaled 1,374,856.

ZEN stock appreciated 9.19% since last month. On 10/05/21, the company’s shares reached a one-month low of $109.55. The stock touched a high of $166.60 on 02/05/21, after rallying from a low of $103.28 in 52 weeks. The price of ZEN stock has declined by -5.51% or -$7.89 this year, reaching a new high 8 times. Still, the stock price is down -18.83% from the 52-week high.


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Insider Transactions

There have been 4 days since Zendesk Inc. (ZEN) last reported insider trading activity on Oct 21. On Oct 21, EVP of Engineering Abildgaard Soren sold 359 shares at $130.36 each. This transaction resulted in the insider making $46,799. On Oct 20, Abildgaard Soren sold 251 shares at a price of US$129.00. After the transaction, the insider now owns 6,099 shares. President of Sales Gennaro Norman had earlier sold 5,000 shares on Oct 15 for $124.87 a share. The transaction was completed for $624,350.

Valuation Metrics

Beta for the stock is 1.18. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 13.85, the price-to-book (PB) ratio of 34.67, and the price-to-cash flow ratio of 126.77.

For the three months ended June 29, Zendesk Inc.’s quick ratio was 1.70, while its current ratio was 1.70, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 2.06, and the total debt to equity ratio is 2.36. As far as profitability goes, gross margin for the trailing twelve months is 77.90% percent. Zendesk Inc.’s EBITDA margin for the year ended June 29 was -8.83%, whereas its operating margin stood at -14.00% for the same period. Based on annual data, it had gross profit of $778.31 million and revenue of $1.03 billion.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. ZEN’s return on assets (ROA) during the last 12 months has been -10.10%. There was a -12.50% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -49.70%. ROE has averaged 3.34 in the past year for the broader industry.

Earnings Surprise

According to Zendesk Inc.’s quarterly financial report for the quarter that ended June 29, it had $957.17 million in total debt versus $515.56 million in cash and short-term investments. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $318.22 million, while revenues rose by 22.49% to $298.05 million. It was predicted that Zendesk Inc.’s quarterly earnings would be $0.13, but it ended up being $0.16, beating the consensus by -18.80%. EBITDA was -$4.43 million for the quarter. At the end of Zendesk Inc.’s most recent quarter ended June 29, its liabilities totaled 1.78 billion, while its total debt was $1.18 billion. Equity owned by shareholders amounts to $120.02 million.

Technical Picture

Here’s a quick look at Zendesk Inc.’s (ZEN) price momentum from a technical perspective. As of 22 October, the RSI 9-day stood at 80.43%, suggesting the stock is Overbought, with a 24.64% historical volatility rate.

The stochastic %K and %D were 95.91% and 95.51% respectively, while the average true range (ATR) was 3.66. Based on the 14-day stochastic reading of 96.87%, the RSI (14) reading is 71.51%. On the 9-day MACD Oscillator, the stock is at 6.37, and the 14-day reading is at 11.40.

Analyst Ratings

In its analyst report released on October 21, 2021, Barclays began covering Zendesk Inc. (NYSE: ZEN). The stock was rated as an Overweight by the brokerage firm. Analysts have assigned Zendesk Inc. (ZEN) an Buy rating. ZEN is a stock that is recommended for selling by 0 brokerage firms, while 2 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 0 rates it overweight and 17 others recommend it as a buy.

What is ZEN’s price target for the next 12 months?

The current consensus forecast for the stock is between $160.00 and $193.00, with a median target price of $180.00. In analyzing these forecasts, the average price target given by analysts for Zendesk Inc. (ZEN) is $179.55.

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