Zuora (NYSE:ZUO) Shares Gap Down – Time to Sell?

Shares of Zuora, Inc. (NYSE:ZUO) gapped down before the market opened on Wednesday . The stock had previously closed at $8.62, but opened at $8.26. Zuora shares last traded at $8.38, with a volume of 10,138 shares traded.

Analyst Upgrades and Downgrades

ZUO has been the topic of a number of research analyst reports. Needham & Company LLC restated a “buy” rating and issued a $15.00 target price on shares of Zuora in a research report on Thursday, August 22nd. Craig Hallum cut shares of Zuora from a “buy” rating to a “hold” rating and decreased their target price for the company from $12.00 to $10.00 in a research report on Monday, July 8th. Finally, Canaccord Genuity Group reiterated a “buy” rating and set a $13.00 price target on shares of Zuora in a research report on Thursday, August 22nd. Three research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, Zuora has an average rating of “Moderate Buy” and a consensus price target of $11.86.

Zuora Price Performance

The company has a current ratio of 2.77, a quick ratio of 2.77 and a debt-to-equity ratio of 1.90. The business has a fifty day moving average of $8.69 and a 200 day moving average of $9.21.

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

Insider Buying and Selling

In other news, insider Peter Hirsch sold 58,267 shares of Zuora stock in a transaction dated Monday, July 15th. The stock was sold at an average price of $9.06, for a total transaction of $527,899.02. Following the sale, the insider now owns 14,566 shares in the company, valued at $131,967.96. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In other news, insider Andrew M. Cohen sold 20,773 shares of the stock in a transaction dated Thursday, October 3rd. The shares were sold at an average price of $8.34, for a total transaction of $173,246.82. Following the completion of the sale, the insider now owns 172,033 shares in the company, valued at $1,434,755.22. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, insider Peter Hirsch sold 58,267 shares of the business’s stock in a transaction dated Monday, July 15th. The shares were sold at an average price of $9.06, for a total value of $527,899.02. Following the completion of the transaction, the insider now owns 14,566 shares in the company, valued at approximately $131,967.96. The disclosure for this sale can be found here. Insiders sold 504,059 shares of company stock valued at $4,406,320 in the last three months. 8.62% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of ZUO. Vanguard Group Inc. grew its position in Zuora by 5.6% in the 1st quarter. Vanguard Group Inc. now owns 17,262,494 shares of the company’s stock valued at $157,434,000 after buying an additional 917,565 shares during the last quarter. Scalar Gauge Management LLC grew its position in shares of Zuora by 35.4% in the second quarter. Scalar Gauge Management LLC now owns 5,091,272 shares of the company’s stock valued at $50,556,000 after purchasing an additional 1,332,343 shares during the last quarter. Solel Partners LP increased its stake in shares of Zuora by 13.5% during the 2nd quarter. Solel Partners LP now owns 4,058,308 shares of the company’s stock worth $40,299,000 after purchasing an additional 483,445 shares in the last quarter. The Manufacturers Life Insurance Company raised its position in shares of Zuora by 13.0% during the 4th quarter. The Manufacturers Life Insurance Company now owns 3,740,046 shares of the company’s stock worth $35,156,000 after purchasing an additional 429,705 shares during the last quarter. Finally, Bares Capital Management Inc. lifted its stake in Zuora by 41.4% in the 1st quarter. Bares Capital Management Inc. now owns 1,746,292 shares of the company’s stock valued at $15,926,000 after buying an additional 511,292 shares in the last quarter. 83.02% of the stock is currently owned by hedge funds and other 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.