Zscaler, Inc. (NASDAQ:ZS) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Zscaler, Inc. has received a consensus rating of "Moderate Buy" from 36 brokerages, with 28 analysts recommending a buy.
• The company's shares are currently priced at $281.96, while analysts have set an average 1-year price target of $296.82.
• In its latest earnings report, Zscaler reported earnings per share of $0.84, exceeding expectations of $0.76, with a revenue growth of 22.6% year-over-year.

Shares of Zscaler, Inc. (NASDAQ:ZS - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the thirty-six ratings firms that are covering the firm, Marketbeat reports. Seven equities research analysts have rated the stock with a hold recommendation, twenty-eight have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price target among brokers that have covered the stock in the last year is $296.8235.

Several equities analysts have recently weighed in on the stock. Wedbush lifted their target price on shares of Zscaler from $240.00 to $300.00 and gave the company an "outperform" rating in a report on Friday, May 30th. BNP Paribas raised shares of Zscaler from a "neutral" rating to an "outperform" rating and set a $260.00 price objective for the company in a report on Monday, April 28th. Truist Financial reissued a "buy" rating and set a $300.00 target price (up from $260.00) on shares of Zscaler in a research note on Friday, May 30th. Susquehanna lifted their price target on Zscaler from $245.00 to $320.00 and gave the company a "positive" rating in a research note on Friday, May 30th. Finally, Roth Capital reaffirmed a "neutral" rating on shares of Zscaler in a report on Wednesday, May 28th.

Zscaler Trading Down 1.4%

Shares of NASDAQ:ZS opened at $281.96 on Wednesday. Zscaler has a twelve month low of $153.45 and a twelve month high of $318.46. The company has a market cap of $43.90 billion, a PE ratio of -1,084.46, a price-to-earnings-growth ratio of 256.29 and a beta of 1.06. The company's 50 day moving average is $296.33 and its 200 day moving average is $239.90.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its earnings results on Thursday, May 29th. The company reported $0.84 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.76 by $0.08. The firm had revenue of $678.03 million during the quarter, compared to analysts' expectations of $667.13 million. Zscaler had a negative net margin of 1.52% and a negative return on equity of 0.59%. The firm's revenue was up 22.6% compared to the same quarter last year. During the same quarter last year, the company posted $0.88 earnings per share. Equities research analysts predict that Zscaler will post -0.1 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Adam Geller sold 3,662 shares of the stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $306.72, for a total transaction of $1,123,208.64. Following the completion of the transaction, the insider directly owned 46,813 shares in the company, valued at approximately $14,358,483.36. This represents a 7.26% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Jagtar Singh Chaudhry sold 2,849 shares of the business's stock in a transaction dated Tuesday, June 17th. The shares were sold at an average price of $303.70, for a total transaction of $865,241.30. Following the completion of the sale, the chief executive officer owned 353,565 shares in the company, valued at approximately $107,377,690.50. This trade represents a 0.80% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 200,793 shares of company stock worth $58,752,794. 18.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Zscaler

Several institutional investors have recently bought and sold shares of the company. Parcion Private Wealth LLC raised its holdings in Zscaler by 3.3% in the second quarter. Parcion Private Wealth LLC now owns 1,200 shares of the company's stock valued at $377,000 after acquiring an additional 38 shares in the last quarter. Secure Asset Management LLC increased its position in shares of Zscaler by 1.8% in the 2nd quarter. Secure Asset Management LLC now owns 2,436 shares of the company's stock valued at $765,000 after purchasing an additional 43 shares during the last quarter. Tlwm increased its position in shares of Zscaler by 1.0% in the 2nd quarter. Tlwm now owns 4,649 shares of the company's stock valued at $1,460,000 after purchasing an additional 44 shares during the last quarter. Quintet Private Bank Europe S.A. raised its holdings in shares of Zscaler by 4.7% in the 1st quarter. Quintet Private Bank Europe S.A. now owns 1,120 shares of the company's stock valued at $222,000 after purchasing an additional 50 shares in the last quarter. Finally, Earned Wealth Advisors LLC lifted its position in shares of Zscaler by 4.3% during the 2nd quarter. Earned Wealth Advisors LLC now owns 1,336 shares of the company's stock worth $419,000 after purchasing an additional 55 shares during the last quarter. 46.45% of the stock is owned by institutional investors and hedge funds.

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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