Insider Selling: Zscaler (NASDAQ:ZS) Insider Sells 5,578 Shares of Stock

Key Points

• Zscaler insider Adam Geller sold 5,578 shares for approximately $1.08 million at an average price of $192.76. The transaction occurred under a pre-arranged Rule 10b5-1 plan to cover tax withholding on vested equity awards, reducing his holdings by 11.35%.
• Zscaler shares rose 3.1% to $197.47, while the company’s latest quarterly results exceeded expectations: adjusted EPS was $1.19 versus the $1.09 consensus, and revenue increased 24.9% year over year to $898.19 million.
• Wall Street remains broadly positive, with a consensus “Moderate Buy” rating from 42 analysts and an average price target of $218.38; institutional investors own 46.45% of the company.

Zscaler, Inc. (NASDAQ:ZS - Get Free Report) insider Adam Geller sold 5,578 shares of the firm's stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $192.76, for a total value of $1,075,215.28. Following the sale, the insider owned 43,553 shares of the company's stock, valued at $8,395,276.28. The trade was a 11.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Adam Geller also recently made the following trade(s):

• On Thursday, September 17th, Adam Geller sold 4,584 shares of Zscaler stock. The shares were sold at an average price of $192.01, for a total value of $880,173.84.
• On Monday, June 22nd, Adam Geller sold 2,817 shares of Zscaler stock. The stock was sold at an average price of $122.60, for a total transaction of $345,364.20.

Zscaler Stock Up 3.1%

Shares of NASDAQ ZS traded up $5.89 during mid-day trading on Thursday, reaching $197.47. The company had a trading volume of 3,015,263 shares, compared to its average volume of 3,320,208. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.70 and a current ratio of 1.70. The company has a market capitalization of $32.20 billion, a price-to-earnings ratio of -506.33, a PEG ratio of 23.05 and a beta of 0.95. The stock has a fifty day moving average of $167.06 and a two-hundred day moving average of $151.50. Zscaler, Inc. has a 12-month low of $114.63 and a 12-month high of $336.99.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, beating analysts' consensus estimates of $1.09 by $0.10. The firm had revenue of $898.19 million for the quarter, compared to the consensus estimate of $876.96 million. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The firm's revenue was up 24.9% on a year-over-year basis. During the same period in the previous year, the firm posted $0.89 earnings per share. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. As a group, equities research analysts expect that Zscaler, Inc. will post 0.61 EPS for the current year.

Hedge Funds Weigh In On Zscaler

A number of institutional investors have recently made changes to their positions in ZS. University of Texas Texas AM Investment Management Co. acquired a new position in shares of Zscaler during the 4th quarter worth about $30,000. POM Investment Strategies LLC grew its holdings in Zscaler by 92.9% in the 2nd quarter. POM Investment Strategies LLC now owns 218 shares of the company's stock valued at $31,000 after buying an additional 105 shares during the last quarter. Western Wealth Management LLC acquired a new stake in Zscaler in the 1st quarter valued at approximately $33,000. Reflection Asset Management bought a new position in Zscaler in the 4th quarter worth approximately $40,000. Finally, Continuum Advisory LLC bought a new position in Zscaler in the 2nd quarter worth approximately $43,000. 46.45% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

ZS has been the topic of a number of research reports. Canaccord Genuity Group reaffirmed a "buy" rating and issued a $210.00 price target on shares of Zscaler in a research note on Friday, September 4th. Citigroup boosted their target price on Zscaler from $175.00 to $205.00 and gave the company a "buy" rating in a research note on Tuesday, September 8th. Guggenheim reaffirmed a "buy" rating and issued a $214.00 target price on shares of Zscaler in a research report on Friday, September 4th. Berenberg Bank set a $200.00 price target on Zscaler in a research note on Thursday, May 28th. Finally, Stephens set a $215.00 price target on Zscaler in a report on Friday, September 4th. Thirty-four investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Zscaler currently has a consensus rating of "Moderate Buy" and a consensus price target of $218.38.

About Zscaler

Zscaler, Inc is a cloud-native cybersecurity company that provides security services designed to help organizations connect users, devices, applications and workloads securely over the internet. Its platform is built around a zero-trust security model, which verifies access based on identity, context and policy rather than relying primarily on a traditional corporate network perimeter.

The company's offerings include Zscaler Internet Access, which secures access to internet and software-as-a-service applications, and Zscaler Private Access, which provides secure, policy-based access to private applications without requiring conventional virtual private networks.

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