Zscaler (NASDAQ:ZS) Releases Earnings Results, Beats Estimates By $0.08 EPS

Zscaler (NASDAQ:ZS - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $0.84 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.76 by $0.08, RTT News reports. Zscaler had a negative return on equity of 0.75% and a negative net margin of 1.58%. The firm had revenue of $678.03 million for the quarter, compared to analyst estimates of $667.13 million. During the same period in the previous year, the company posted $0.88 earnings per share. The business's revenue was up 22.6% on a year-over-year basis. Zscaler updated its FY 2025 guidance to 3.180-3.19 EPS and its Q4 2025 guidance to EPS.

Zscaler Price Performance

Shares of ZS stock traded up $22.92 during trading hours on Friday, reaching $274.03. 9,940,403 shares of the stock were exchanged, compared to its average volume of 2,045,319. The business's fifty day moving average is $220.62 and its two-hundred day moving average is $206.33. The firm has a market capitalization of $42.40 billion, a P/E ratio of -1,096.12 and a beta of 1.14. Zscaler has a 12-month low of $153.45 and a 12-month high of $276.49.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on ZS. Jefferies Financial Group lowered their price target on shares of Zscaler from $245.00 to $240.00 and set a "buy" rating on the stock in a research report on Monday, March 31st. Stifel Nicolaus boosted their target price on Zscaler from $270.00 to $295.00 and gave the stock a "buy" rating in a report on Friday. Guggenheim restated a "neutral" rating on shares of Zscaler in a research report on Friday. JPMorgan Chase & Co. lifted their price objective on Zscaler from $275.00 to $292.00 and gave the stock an "overweight" rating in a research report on Friday. Finally, Barclays upped their target price on Zscaler from $275.00 to $290.00 and gave the company an "overweight" rating in a report on Friday. Ten investment analysts have rated the stock with a hold rating and twenty-seven have issued a buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $275.12.

Insider Buying and Selling

In other news, insider Robert Schlossman sold 3,590 shares of the company's stock in a transaction on Friday, May 16th. The shares were sold at an average price of $250.00, for a total value of $897,500.00. Following the completion of the transaction, the insider now owns 100,230 shares in the company, valued at approximately $25,057,500. This represents a 3.46% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, major shareholder Ajay Mangal sold 190,480 shares of the stock in a transaction on Monday, March 17th. The shares were sold at an average price of $200.69, for a total transaction of $38,227,431.20. Following the completion of the transaction, the insider now directly owns 2,580,210 shares in the company, valued at $517,822,344.90. This trade represents a 6.87% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 241,771 shares of company stock worth $50,165,040 over the last 90 days. 18.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in ZS. Empowered Funds LLC boosted its stake in shares of Zscaler by 9.2% during the first quarter. Empowered Funds LLC now owns 2,811 shares of the company's stock worth $558,000 after buying an additional 238 shares during the period. Integrated Wealth Concepts LLC increased its position in Zscaler by 19.9% in the 1st quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company's stock valued at $285,000 after acquiring an additional 239 shares during the period. Finally, NewEdge Advisors LLC raised its stake in Zscaler by 8.2% during the 1st quarter. NewEdge Advisors LLC now owns 4,899 shares of the company's stock valued at $972,000 after acquiring an additional 370 shares during the last quarter. Institutional investors and hedge funds own 46.45% of the company's stock.

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.