Cantor Fitzgerald Reaffirms Overweight Rating for Zscaler (NASDAQ:ZS)

Key Points

• Cantor Fitzgerald has reaffirmed an "overweight" rating for Zscaler (NASDAQ:ZS) with a target price of $340.00, indicating a potential upside of 24.51% from the company's last close.
• Zscaler's stock has received a consensus rating of "Moderate Buy" from analysts, with a price target averaging $296.49, alongside a strong growth forecast.
• Insider transactions include significant sales of shares by executives, with a total of 168,256 shares sold in the last 90 days, representing a noteworthy amount of insider activity.

Zscaler (NASDAQ:ZS - Get Free Report)'s stock had its "overweight" rating reissued by equities research analysts at Cantor Fitzgerald in a note issued to investors on Thursday,Benzinga reports. They currently have a $340.00 target price on the stock. Cantor Fitzgerald's price target points to a potential upside of 24.51% from the company's previous close.

Other research analysts have also issued research reports about the stock. FBN Securities upgraded shares of Zscaler to a "strong-buy" rating in a research note on Friday, May 30th. Evercore ISI raised their price objective on shares of Zscaler from $245.00 to $290.00 and gave the company an "outperform" rating in a research note on Friday, May 30th. Scotiabank raised their price objective on shares of Zscaler from $310.00 to $360.00 and gave the company a "sector outperform" rating in a research note on Friday, June 6th. BTIG Research reiterated a "buy" rating on shares of Zscaler in a research note on Thursday, July 10th. Finally, Needham & Company LLC raised their price objective on shares of Zscaler from $240.00 to $310.00 and gave the company a "buy" rating in a research note on Friday, May 30th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $296.49.

Zscaler Trading Up 2.0%

Shares of NASDAQ:ZS opened at $273.07 on Thursday. The firm's 50 day moving average is $290.22 and its two-hundred day moving average is $247.90. Zscaler has a 52 week low of $153.45 and a 52 week high of $318.46. The firm has a market capitalization of $42.52 billion, a P/E ratio of -1,050.27, a PEG ratio of 285.53 and a beta of 1.06.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings results on Thursday, May 29th. The company reported $0.84 EPS for the quarter, beating the consensus estimate of $0.76 by $0.08. Zscaler had a negative net margin of 1.52% and a negative return on equity of 0.59%. The company had revenue of $678.03 million for the quarter, compared to analyst estimates of $667.13 million. During the same quarter last year, the business earned $0.88 earnings per share. Zscaler's revenue was up 22.6% compared to the same quarter last year. Analysts predict that Zscaler will post -0.1 EPS for the current year.

Insider Transactions at Zscaler

In other Zscaler news, insider Adam Geller sold 3,662 shares of Zscaler stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $306.72, for a total value of $1,123,208.64. Following the transaction, the insider owned 46,813 shares in the company, valued at approximately $14,358,483.36. The trade was a 7.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Andrew William Fraser Brown sold 20,333 shares of Zscaler stock in a transaction that occurred on Wednesday, June 4th. The stock was sold at an average price of $296.72, for a total transaction of $6,033,207.76. Following the completion of the transaction, the director owned 27,216 shares in the company, valued at approximately $8,075,531.52. This trade represents a 42.76% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 168,256 shares of company stock valued at $50,618,544 in the last 90 days. 18.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Zscaler

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Orion Porfolio Solutions LLC grew its position in Zscaler by 41.9% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 4,374 shares of the company's stock worth $1,373,000 after purchasing an additional 1,292 shares in the last quarter. Munro Partners purchased a new position in Zscaler during the 2nd quarter worth approximately $3,221,000. Thrivent Financial for Lutherans purchased a new position in Zscaler during the 2nd quarter worth approximately $232,000. MASTERINVEST Kapitalanlage GmbH purchased a new position in Zscaler during the 2nd quarter worth approximately $1,793,000. Finally, Thompson Davis & CO. Inc. purchased a new position in Zscaler during the 2nd quarter worth approximately $267,000. 46.45% of the stock is currently owned by hedge funds and other institutional investors.

About Zscaler

Zscaler, Inc operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.

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