Zendesk, Inc. (ZEN) Stock: Why It’s Climbing

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Zendesk, Inc. (ZEN) is trending up in the market in today’s trading session. The company, one that is focused in the tech sector, is currently trading at $70.29 after gaining 5.83% so far today. When it comes to tech companies, there are several aspects that have the ability to lead to gains in the market. One of the most common is news. Here are the recent trending headlines relating to ZEN:

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Oct-30-19 02:50AM Edited Transcript of ZEN earnings conference call or presentation 29-Oct-19 9:00pm GMT
Oct-29-19 07:25PM Zendesk (ZEN) Tops Q3 Earnings and Revenue Estimates
04:25PM SHAREHOLDER ACTION ALERT: The Schall Law Firm Announces it is Investigating Claims Against Zendesk, Inc. and Encourages Investors with Losses to Contact the Firm
04:15PM Zendesk Announces Third Quarter 2019 Results
01:55PM Shareholder Alert: Robbins Arroyo LLP Announces Zendesk, Inc. (ZEN) Sued for Misleading Shareholders

Nonetheless, when making an investing decision, investors should focus on much more than news, especially in the ever evolving tech industry. Here’s what’s happening with Zendesk, Inc..

The Performance That ZEN Investors Have Experienced

Although a move toward the top in a single session, like the move that we’re seeing from Zendesk, Inc. may lead to excitement in some investors, a single session move by itself should not be the reason for a decision to, or not to, invest in a stock. It is always smart to dig into trends beyond a single trading session. In the case of ZEN, here are the movements that investors have seen:

  • Weekly – In the last week, ZEN has seen a price change that amounts to 4.21%.
  • Past 30 Days – The return from Zendesk, Inc. in the last month works out to -8.88%.
  • Quarterly – Throughout the last quarter, the company has produced a return of -20.52%
  • Past 6 Months – Throughout the last 6 months, investors have seen a change that works out to -21.66% from the stock.
  • Year To Date – Since the the last trading session of last year ZEN has produced a ROI of 13.77%.
  • Full Year – Finally, throughout the last year, we have seen movement amounting to 19.27% out of ZEN. Over this period, the stock has traded at a high of -25.93% and a low of 54.13%.

Ratios To Watch

Digging into a few ratios having to do with a stock can give investors a look of how risky and/or potentially profitable a stock pick might be. Here are a few of the key ratios to think about when digging into ZEN.

Short Ratio – The short ratio is a measure of short interest. As the ratio goes higher, it means that more investors have a belief that the stock is headed for declines. Throughout the sector, strong technology stocks can carry a lower short ratio. On the other hand, we also see a lot of short squeezes in the space. Nonetheless, in regard to Zendesk, Inc., it’s short ratio is 3.73.

Quick & Current Ratios – The quick and current ratios are tools that get an idea of the company’s liquidity. Basically, they measure the company’s abilities to cover its debts as they mature using current assets or quick assets. In the tech space, several companies are reliant on the continuation of support from investors as they work to bring new technologies to market, these ratios can seem damning. Nonetheless, several good picks in the technology sector come with good quick and current ratios. When it comes to ZEN, the quick and current ratios come to 0.70 and 0.70 respectively.  

Book To Share Value – The book to share value compares the the share price to the current book value of assets that are owned by the company. In this case, that ratio equates to 3.88.

Cash To Share Value – Finally, the cash to share value ratio compares the total cash on hand to the price of shares. In this case, the cash to share value ratio comes to 3.85.

Is Big Money Interested in Zendesk, Inc.?

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in ZEN, here’s what we’re seeing:

Institutions own 98.10% of the company. Institutional interest has moved by 2.40% over the past three months. When it comes to insiders, those who are close to the company currently own 1.50% percent of ZEN shares. Institutions have seen ownership changes of an accumulative -18.49% over the last three months.

What Analysts Say About Zendesk, Inc.

While it’s not a smart idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a smart idea to consider their analysis when validating your own due diligence before making investment decisions in the tech industry. Below you’ll find the most recent moves that we have seen from analysts with regard to ZEN.

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Sep-03-19 Resumed RBC Capital Mkts Outperform
Aug-13-19 Initiated Compass Point Buy
Jul-31-19 Reiterated Canaccord Genuity Buy $100 → $105
Jun-07-19 Initiated Goldman Buy $105
May-01-19 Reiterated BofA/Merrill Buy $100 → $105

What We’ve Seen In Financial Results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0.56. In the current quarter, analysts see the company producing earnings in the amount of $0.06. Over the last 5 years, ZEN has generated revenue in the amount of $52.70% with earnings coming in at -26.50%. On a quarter over quarter basis, earnings have seen movement of -51.50% and revenue has seen movement of 37.10%.

A Look At Share Counts

Investors seem to have a heavy interest in the amounts of shares both available and outstanding. In terms of Zendesk, Inc., currently there are 110.98M with a float of 109.33M. These numbers mean that of the total of 110.98M shares of ZEN in existence today, 109.33M are available to be traded on the market.

I also find it important to dig into the short percent. After all, when a high portion of the float is sold short, the overall opinion among traders is that the stock is going to fall. When it comes to ZEN, the percentage of the float that is shorted currently sits at 7.63%. Most traders believe that a high short percent of the float would be any percentage over 40%. However, I have calculated that anything over 26% is usually a play that comes with hefty risk.

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