Zscaler, Inc. (NASDAQ:ZS) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Zscaler, Inc. has received a majority recommendation of "Moderate Buy" from 37 research firms, with 28 analysts rating it a buy.
• The company's average one-year price target among brokerages is approximately $296.49, while Zscaler's shares recently opened at $277.05.
• Recent insider transactions include major shareholder Ajay Mangal selling 120,000 shares for about $36 million, decreasing his position by 4.49%.

Shares of Zscaler, Inc. (NASDAQ:ZS - Get Free Report) have earned a consensus rating of "Moderate Buy" from the thirty-seven brokerages that are presently covering the company, MarketBeat Ratings reports. Seven equities research analysts have rated the stock with a hold recommendation, twenty-nine have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month target price among analysts that have issued ratings on the stock in the last year is $297.6286.

Several analysts recently issued reports on ZS shares. Wells Fargo & Company raised shares of Zscaler from an "equal weight" rating to an "overweight" rating and upped their price objective for the company from $260.00 to $385.00 in a research note on Friday, June 13th. BTIG Research restated a "buy" rating on shares of Zscaler in a research report on Thursday, July 10th. BMO Capital Markets increased their price target on Zscaler from $233.00 to $295.00 and gave the company an "outperform" rating in a report on Friday, May 30th. JMP Securities boosted their price objective on Zscaler from $310.00 to $355.00 and gave the stock a "market outperform" rating in a research note on Tuesday, July 1st. Finally, Rosenblatt Securities upped their target price on Zscaler from $235.00 to $315.00 and gave the company a "buy" rating in a report on Friday, May 30th.

Zscaler Price Performance

NASDAQ ZS traded down $2.48 during mid-day trading on Friday, hitting $274.57. The stock had a trading volume of 5,352,502 shares, compared to its average volume of 2,133,808. Zscaler has a twelve month low of $153.45 and a twelve month high of $318.46. The firm's 50 day moving average is $288.53 and its 200 day moving average is $249.79. The stock has a market capitalization of $42.75 billion, a price-to-earnings ratio of -1,056.04, a PEG ratio of 259.58 and a beta of 1.05.

Zscaler (NASDAQ:ZS - Get Free Report) last released its earnings results on Tuesday, September 2nd. The company reported ($0.04) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.80 by ($0.84). Zscaler had a negative return on equity of 0.59% and a negative net margin of 1.52%. As a group, equities research analysts expect that Zscaler will post -0.1 earnings per share for the current year.

Insider Transactions at Zscaler

In related news, insider Adam Geller sold 3,662 shares of the firm's stock in a transaction dated Wednesday, June 18th. The shares were sold at an average price of $306.72, for a total transaction of $1,123,208.64. Following the completion of the sale, the insider directly owned 46,813 shares in the company, valued at approximately $14,358,483.36. This trade represents a 7.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Robert Schlossman sold 3,174 shares of the business's stock in a transaction dated Wednesday, June 18th. The shares were sold at an average price of $305.07, for a total transaction of $968,292.18. Following the completion of the transaction, the insider owned 88,970 shares in the company, valued at $27,142,077.90. The trade was a 3.44% decrease in their ownership of the stock. 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 three months. 18.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Zscaler

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Parcion Private Wealth LLC boosted its stake in Zscaler by 3.3% during the second quarter. Parcion Private Wealth LLC now owns 1,200 shares of the company's stock worth $377,000 after buying an additional 38 shares during the period. Secure Asset Management LLC boosted its position in shares of Zscaler by 1.8% during the 2nd quarter. Secure Asset Management LLC now owns 2,436 shares of the company's stock worth $765,000 after purchasing an additional 43 shares during the period. Tlwm boosted its position in shares of Zscaler by 1.0% during the 2nd quarter. Tlwm now owns 4,649 shares of the company's stock worth $1,460,000 after purchasing an additional 44 shares during the period. Sepio Capital LP increased its holdings in Zscaler by 0.6% in the 2nd quarter. Sepio Capital LP now owns 8,209 shares of the company's stock valued at $2,577,000 after purchasing an additional 45 shares during the last quarter. Finally, Smartleaf Asset Management LLC raised its position in Zscaler by 7.5% in the second quarter. Smartleaf Asset Management LLC now owns 648 shares of the company's stock valued at $204,000 after purchasing an additional 45 shares during the period. 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.