The Vanguard Group, Inc. recently announced the acquisition of new stake in Zendesk Inc. (NYSE:ZEN). The institutional investor has increased its shareholding in the Technology company by 4.80% to 10.29 million shares with purchase of 0.47 million shares. This fresh investment now brings its stake to 9.01% valued currently at $937.98 million. In addition, Janus Capital Management LLC raised its holdings by 1.02 million to 7.24 million shares. And BlackRock Fund Advisors has lifted its position by 7.06% or 0.35 million shares – to 5.32 million shares.
With over 2.6 million Zendesk Inc. (ZEN) shares trading Tuesday and a closing price of $103.10 on the day, the dollar volume was approximately $268.12 million. The shares have shown a positive weekly performance of 17.76% and its price on 09/01/20 gained nearly 6.97%. Currently, there are 114.60M common shares owned by the public and among those 113.64M shares have been available to trade.
An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 22 analysts who have offered their price forecasts for ZEN have a consensus price objective of $109.97. The analysts have set the share’s price value over the next 12 months at a high of $123.00 and a low of $90.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Zendesk Inc. stock is 2.00 for the next 12 months. The average price target is 4.69% above its last price level and an upside to the estimated low will see the stock lose -14.56% over that period. But an upside of 16.18% will see the stock hit the forecast high price target while mean target price for the stock is $112.50.
Insiders at the company have transacted a total of 1016 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 484 of these insider trades were purchases, accounting for 476,631 shares. Insider sales of the common stock occurred on 532 occasions, with total insider shares sold totaling 645,905 shares.
The top 3 mutual fund holders in Zendesk Inc. are T Rowe Price New Horizons Fund, Vanguard Total Stock Market Index, and Vanguard Small Cap Index Fund. T Rowe Price New Horizons Fund owns 6.34 million shares of the company’s stock, all valued at over $577.63 million. The company sold -0.12 million shares recently to bring their total holdings to about 5.55% of the shares outstanding. Vanguard Total Stock Market Index sold 1599.0 shares to see its total holdings shrink to 3.26 million shares valued at over $297.01 million and representing 2.85% of the shares outstanding. Vanguard Small Cap Index Fund sold 23700.0 shares to bring its total holdings to over 2.34 million shares at a value of $212.98 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.05% of the shares outstanding.
Shares of Zendesk Inc. (NYSE: ZEN) opened at $98.50, up $2.12 from a prior closing price of $96.38. However, the script later closed the day at $103.10, up 6.97%. The company’s stock has a 5-day price change of 17.76% and 19.83% over the past three months. ZEN shares are trading 34.54% year to date (YTD), with the 12-month market performance up to 30.29% higher. It has a 12-month low price of $50.23 and touched a high of $101.94 over the same period. Currently, 2.6 million shares have been traded, compared to an average intraday trading volume of 2.00 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 15.51%, 14.28%, and 28.47% respectively.
Institutional ownership of Zendesk Inc. (NYSE: ZEN) shares accounts for 98.92% of the company’s 114.60M shares outstanding. Mutual fund holders own 42.57%, while other institutional holders and individual stakeholders account for 57.71% and 21.47% respectively.
It has a market capitalization of $11.68B and a beta (3y monthly) value of 1.31. The earnings-per-share (ttm) stands at -$1.57. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.80% over the week and 3.11% over the month.
Analysts forecast that Zendesk Inc. (ZEN) will achieve an EPS of $0.11 for the current quarter, $0.12 for the next quarter and $0.7 for 2021. The lowest estimate earnings-per-share for the quarter is $0.08 while analysts give the company a high EPS estimate of $0.15. Comparatively, EPS for the current quarter was $0.12 a year ago. Earnings per share for the fiscal year are expected to decrease by -23.50%, and 49.15% over the next financial year.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 22 brokerage firm advisors rate Zendesk Inc. (ZEN) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 16 Wall Street analysts polled rate the stock as a buy, while 5 of the 22 advise that investors “hold,” and 0 rated it as a “Sell.”
Looking at the support for the ZEN, a number of firms have released research notes about the stock. Piper Sandler stated their Overweight rating for the stock in a research note on September 01, 2020, with the firm’s price target at $87-$123. Citigroup coverage for the Zendesk Inc. (ZEN) stock in a research note released on July 16, 2020 offered a Neutral rating with a price target of $100. Piper Sandler was of a view on May 01, 2020 that the stock is Neutral, while Evercore ISI gave the stock In-line rating on April 28, 2020, issuing a price target of $76. Wedbush on their part issued Neutral rating on April 22, 2020.