Zendesk, Inc. (ZEN) Stock: A Strong Pick In The technology Sector?

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Zendesk, Inc. (ZEN) is making a move down in the market in today’s trading session. The stock, focused in the technology space, is presently priced at $87.40 after falling -4.88% so far in today’s session. In terms of tech companies, there are quite a few factors that have the potential to generate declines in the market. One of the most common is news. Here are the most recent trending headlines centered around ZEN:

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Jun-10-19 04:11PM Hedge Funds Have Never Been More Bullish On Zendesk Inc (ZEN)
Jun-07-19 04:50PM Shopify Stock Hits New High As HubSpot, Zendesk Win Buy Ratings
May-30-19 03:24PM FAANG’s Out: Investing Gems In Today’s Technology Landscape
May-29-19 07:00AM Kustomer raises $40M more led by Tiger Global for its omnichannel approach to CRM
May-27-19 09:00AM 3 Tech Stocks Up 20% or More in 2019

Nonetheless, when making a decision with regard to investing, investors should look into far more than just news, this is especially the case in the ever changing technology sector. Here’s what’s happing when it comes to Zendesk, Inc..

Recent Moves From ZEN

Although a decline in a single session, like the move that we’re seeing from Zendesk, Inc. may cause fear in some investors, that by itself shouldn’t be the reason for a decision to, or not to, invest in a company. It is always smart to take a look at trends beyond a single session. When it comes to ZEN, here are the trends that we have seen:

  • Past 7 Days – In the last week, ZEN has produced a price change that amounts to 17.16%.
  • Past Month – The ROI from Zendesk, Inc. in the past month has been 5.29%.
  • Quarterly – In the past three months, the company has generated a return on investment that comes to 16.00%
  • Past Six Months – Over the past 6 months, we have seen a change of 53.44% from the company.
  • This Year So Far – Since the close of last year ZEN has produced a return of 57.41%.
  • Annually – Lastly, over the past full year, we have seen movement of 66.66% out of ZEN. Throughout this period of time, the stock has sold at a high of -6.74% and a low price of 91.67%.

Rations That Investors Should Consider

Digging into a few key ratios having to do with a company can provide prospective traders a view of just how risky and/or potentially profitable a an investment option may be. Here are a few of the important ratios to consider when digging into ZEN.

Short Ratio – The short ratio is a measure of short interest. As the ratio climbs, it means that more investors believe that the value of the stock is headed for declines. Throughout the sector, strong tech stocks can carry a lower short ratio. On the other hand, we tend to see quite a few short squeezes in the industry. Nonetheless, when it comes to Zendesk, Inc., the stock’s short ratio amounts to 3.65.

Quick & Current Ratios – The quick and current ratios are ratios that are used to get an idea of the company’s liquidity. Basically, they measure whether or not a company can pay its debts when they come due with only current assets or quick assets. Because in tech, many companies rely heavily on continued investor support as they work to bring new technologies to market, the current and quick ratios can look bad. However, some better companies in the technology space come with positive current and quick ratios. As it relates to ZEN, the quick and current ratios come to 1.50 and 1.50 respectively.  

Book To Share Value – The book to share value ratio compares the value of assets owned by the company to the share price. as it relates to Zendesk, Inc., that ratio comes in at 3.86.

Cash To Share Value – The cash to share value ratio compares the total cash on hand to the value of shares. In the case of ZEN, the cash to share value ratio is 4.09.

Moves From Big Money Players

An interesting fact I’ve learned so far in my short time alive, or somewhat alive has been that smart money tends to follow big money. In general, investors that are trying to keep their investments relatively safe will watch trades made by institutions as well as those on the inside. So, how does the big money flow as it relates to ZEN? Here’s what’s happening:

  • Institutions – Currently, institutional investors own 95.50% of ZEN. On the other hand, it is important to note that the ownership held by institutions has seen a move in the amount of -2.34% in the last quarter.
  • Insider Moves – with regard to insiders, those close to the situation currently own 1.70% of the company. Their ownership of the company has moved -11.93% in the last quarter.

Analyst Opinions With Regard To Zendesk, Inc.

Although it’s never a good idea to unknowingly follow the opinions of analysts, it is a good idea to consider their thoughts when validating your own thoughts before making investment decisions in the tech sector. Below are the recent moves that we’ve seen from analysts as it relates to ZEN.

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Jun-07-19 Initiated Goldman Buy $105
May-01-19 Reiterated BofA/Merrill Buy $100 → $105
Feb-06-19 Reiterated BofA/Merrill Buy $68 → $86
Jan-17-19 Initiated Stephens Overweight
Dec-07-18 Initiated Wedbush Outperform $71

Financial Results And Expectations

What have ween seen from ZEN in terms of financial results?Here’s the data:

  • Analyst Expectations – As it stands at the moment, Wall Street analysts are expecting that the company will come up with EPS that totals up to be 0.61, with 0.05 to be announced in the next financial report. Although this is not earnings driven, because we’re chatting about Wall St. analysts, Zendesk, Inc. is presently graded as a 1.80 when rated on a scale from 1 to 5 on which 1 is the worst possible analyst grade and 5 is the best possible rating.
  • 5-Year Sales – In the last 5 years, Zendesk, Inc. has reported a movement in sales volume that works out to 52.70%. EPS over the period have generated movement in the amount of -26.50%.
  • Quarter Over Quarter – In terms of quarter over quarter earnings performance, or Q/Q data as it is often explained in the world of humans, Zendesk, Inc. has created a change in earnings in the amount of -45.60%. Zendesk, Inc. has also seen movement in regard to revenue that totals 39.80%.

A Look At Share Counts

Investors and traders seem to have a heavy interest in the amounts of shares both available and outstanding. With respect to Zendesk, Inc., there are currently 108.63M with a float of 107.18M. These numbers mean that out of the total of 108.63M shares of ZEN currently in existence today, 107.18M are available to be traded on the market.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to ZEN, the short percent of the float is 5.54%.

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