Zacks Investment Research cut shares of Zendesk, Inc. (NYSE:ZEN) from a hold rating to a sell rating in a research note issued to investors on Wednesday.

According to Zacks, “Zendesk, Inc. is a software development company. It provides a software-as-a-service, or SaaS, customer service platform. The Company offers applications that allow clients to manage incoming support requests from end customers from any Internet connected computer. It provides customer service through its platform in approximately 40 languages to customers in various industries, such as business technology, telecommunications, education/non-profit, consumer technology, media/entertainment, and retail/ecommerce. Zendesk, Inc. is headquartered in San Francisco, California. “

A number of other research analysts have also weighed in on ZEN. Guggenheim initiated coverage on Zendesk in a research note on Wednesday, April 12th. They set a buy rating on the stock. They noted that the move was a valuation call. UBS AG reissued a buy rating and set a $38.00 price target (up previously from $36.00) on shares of Zendesk in a research note on Friday, May 5th. BidaskClub lowered Zendesk from a strong-buy rating to a buy rating in a research note on Thursday, June 29th. Stifel Nicolaus reissued a hold rating on shares of Zendesk in a research note on Friday, July 21st. Finally, KeyCorp reissued a buy rating and set a $35.00 price target on shares of Zendesk in a research note on Friday, August 4th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and eleven have given a buy rating to the company’s stock. Zendesk presently has a consensus rating of Buy and an average target price of $33.00.

Shares of Zendesk (NYSE:ZEN) opened at 26.29 on Wednesday. The firm’s 50-day moving average price is $28.29 and its 200 day moving average price is $27.35. Zendesk has a 1-year low of $19.77 and a 1-year high of $31.88. The firm’s market cap is $2.64 billion.

Zendesk (NYSE:ZEN) last issued its quarterly earnings results on Thursday, August 3rd. The software maker reported ($0.26) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.06) by $0.20. Zendesk had a negative return on equity of 32.10% and a negative net margin of 29.34%. The business had revenue of $101.30 million for the quarter, compared to analysts’ expectations of $99.47 million. During the same period in the prior year, the company earned ($0.06) EPS. The company’s revenue for the quarter was up 36.5% compared to the same quarter last year. On average, equities research analysts forecast that Zendesk will post ($0.17) EPS for the current fiscal year.

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In related news, insider Adrian Mcdermott sold 1,766 shares of the stock in a transaction on Tuesday, June 20th. The stock was sold at an average price of $27.61, for a total value of $48,759.26. Following the transaction, the insider now directly owns 80,145 shares of the company’s stock, valued at approximately $2,212,803.45. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Caryn Marooney sold 3,331 shares of the stock in a transaction on Monday, May 22nd. The stock was sold at an average price of $24.76, for a total value of $82,475.56. Following the completion of the transaction, the director now directly owns 40,858 shares in the company, valued at $1,011,644.08. The disclosure for this sale can be found here. Insiders sold a total of 148,834 shares of company stock worth $4,098,844 over the last ninety days. Corporate insiders own 5.30% of the company’s stock.

Hedge funds have recently made changes to their positions in the stock. BlackRock Inc. increased its stake in shares of Zendesk by 81,570.3% in the first quarter. BlackRock Inc. now owns 5,702,221 shares of the software maker’s stock valued at $159,888,000 after buying an additional 5,695,239 shares in the last quarter. JPMorgan Chase & Co. increased its stake in shares of Zendesk by 77.9% in the second quarter. JPMorgan Chase & Co. now owns 2,110,503 shares of the software maker’s stock valued at $58,629,000 after buying an additional 923,875 shares in the last quarter. Vanguard Group Inc. increased its stake in shares of Zendesk by 10.9% in the second quarter. Vanguard Group Inc. now owns 7,365,549 shares of the software maker’s stock valued at $204,615,000 after buying an additional 721,652 shares in the last quarter. Jericho Capital Asset Management L.P. increased its stake in shares of Zendesk by 36.6% in the first quarter. Jericho Capital Asset Management L.P. now owns 2,459,840 shares of the software maker’s stock valued at $68,974,000 after buying an additional 659,466 shares in the last quarter. Finally, Calamos Advisors LLC increased its stake in shares of Zendesk by 71.1% in the second quarter. Calamos Advisors LLC now owns 1,511,983 shares of the software maker’s stock valued at $42,003,000 after buying an additional 628,451 shares in the last quarter. Hedge funds and other institutional investors own 92.69% of the company’s stock.

About Zendesk

Zendesk, Inc (Zendesk) is a software development company. The Zendesk family of products is built to work together to help organizations understand and manage customer relationships. All Zendesk products share a common interface and are being developed to support a shared services infrastructure and common customer data platform.

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