Zuora (NYSE:ZUO) Shares Gap Up – Here’s Why

Zuora, Inc. (NYSE:ZUO)’s stock price gapped up before the market opened on Thursday . The stock had previously closed at $9.42, but opened at $10.02. Zuora shares last traded at $9.96, with a volume of 7,995,492 shares changing hands.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the company. Canaccord Genuity Group reissued a “buy” rating and set a $13.00 price objective on shares of Zuora in a research note on Thursday, August 22nd. Craig Hallum downgraded Zuora from a “buy” rating to a “hold” rating and dropped their price objective for the stock from $12.00 to $10.00 in a report on Monday, July 8th. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $15.00 target price on shares of Zuora in a research note on Thursday, August 22nd. Three research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. According to MarketBeat, Zuora has an average rating of “Moderate Buy” and an average target price of $11.86.

Zuora Stock Performance

The company has a debt-to-equity ratio of 1.90, a quick ratio of 2.77 and a current ratio of 2.77. The firm’s 50-day moving average price is $8.71 and its two-hundred day moving average price is $9.21. The firm has a market capitalization of $1.52 billion, a price-to-earnings ratio of -31.19 and a beta of 1.72.

Zuora (NYSE:ZUO) last released its quarterly earnings results on Wednesday, August 21st. The company reported $0.19 EPS for the quarter, beating analysts’ consensus estimates of $0.10 by $0.09. The firm had revenue of $115.40 million for the quarter, compared to analyst estimates of $112.63 million. Zuora had a negative net margin of 10.60% and a negative return on equity of 12.54%. The company’s revenue for the quarter was up 6.8% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.12) earnings per share. Sell-side analysts predict that Zuora, Inc. will post -0.06 earnings per share for the current year.

Insider Buying and Selling at Zuora

In other Zuora news, insider Peter Hirsch sold 18,855 shares of the business’s stock in a transaction dated Tuesday, October 15th. The shares were sold at an average price of $9.06, for a total value of $170,826.30. Following the completion of the transaction, the insider now directly owns 19,279 shares of the company’s stock, valued at approximately $174,667.74. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In related news, CFO Todd Mcelhatton sold 51,879 shares of the business’s stock in a transaction that occurred on Thursday, October 3rd. The shares were sold at an average price of $8.34, for a total transaction of $432,670.86. Following the completion of the sale, the chief financial officer now directly owns 356,875 shares of the company’s stock, valued at $2,976,337.50. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, insider Peter Hirsch sold 18,855 shares of the business’s stock in a transaction that occurred on Tuesday, October 15th. The stock was sold at an average price of $9.06, for a total transaction of $170,826.30. Following the sale, the insider now directly owns 19,279 shares of the company’s stock, valued at approximately $174,667.74. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 221,081 shares of company stock worth $1,857,391 over the last ninety days. Corporate insiders own 8.62% of the company’s stock.

Institutional Investors Weigh In On Zuora

A number of institutional investors and hedge funds have recently modified their holdings of ZUO. Point72 Asia Singapore Pte. Ltd. bought a new stake in shares of Zuora during the second quarter worth approximately $44,000. CWM LLC raised its stake in shares of Zuora by 25.0% during the second quarter. CWM LLC now owns 7,945 shares of the company’s stock worth $79,000 after buying an additional 1,590 shares during the last quarter. Quent Capital LLC bought a new stake in Zuora in the first quarter valued at approximately $83,000. Canada Pension Plan Investment Board bought a new stake in Zuora in the second quarter valued at approximately $85,000. Finally, Williams Financial LLC bought a new stake in Zuora in the second quarter valued at approximately $119,000. 83.02% of the stock is owned by institutional investors.

About Zuora

Zuora, Inc provides a monetization suite for modern businesses to help companies launch and scale new services and operate dynamic customer-centric business models. The company offers Zuora Billing that allows customers to deploy various pricing and packaging strategies to monetize their recurring revenue streams, bill customers, calculate prorations when subscriptions change, and automate billing and payment operations; Zuora Revenue, a revenue recognition and automation solution that accounting teams use to manage their complex revenue streams; Zuora Payments to provide payment orchestration services for companies looking to operate globally; and Zephr, a digital subscriber experience platform that helps companies orchestrate dynamic experiences that increase conversion, reduce churn, and nurture ongoing subscriber relationships.