Analysts Are Downgrading These 5 Stocks

Page 1 of 5

In this article, we discuss the 5 stocks that analysts are downgrading. If you want to read our detailed analysis of these stocks, go directly to Analysts Are Downgrading These 10 Stocks

5. Zendesk, Inc. (NYSE:ZEN)

Number of Hedge Fund Holders: 57    

Zendesk, Inc. (NYSE:ZEN) operates as a software development firm. The hedge fund sentiment around the stock makes for positive reading. At the end of the fourth quarter of 2021, 57 hedge funds in the database of Insider Monkey held stakes worth $2.5 billion in Zendesk, Inc. (NYSE:ZEN), up from 53 in the previous quarter worth $1.5 billion.

On February 14, Wolfe Research analyst Alex Zukin downgraded Zendesk, Inc. (NYSE:ZEN) stock to Peer Perform from Outperform, noting that the fourth quarter results of the firm were at lower beat magnitudes than the trailing twelve month average and the outlook for 2022 by the management was also disappointing. 

In its Q4 2020 investor letter, Wasatch Ultra Growth Fund, an asset management firm, highlighted a few stocks and Zendesk, Inc. (NYSE:ZEN) was one of them. Here is what the fund said:

“Zendesk, Inc. (NYSE:ZEN) was also a top contributor. The company provides business software using the software-as-a-service (SaaS) model. Zendesk, Inc. (NYSE:ZEN) has experienced strong demand throughout the Covid19 pandemic from customers in e-commerce, as well as from other businesses with employees working from home. Additionally, demand from clients in the travel and hospitality industries has picked up as global economies have begun to reopen. Adjusted earnings per share rose 42% in the company’s most recent quarter on revenue growth of 24% compared to the same quarter a year ago. An improved sales outlook from Zendesk’s management also helped lift the stock.”

Page 1 of 5