Zscaler (NASDAQ:ZS) Downgraded by Wall Street Zen to "Hold"

Wall Street Zen cut shares of Zscaler (NASDAQ:ZS - Free Report) from a buy rating to a hold rating in a research report released on Saturday.

ZS has been the subject of several other reports. Mizuho upped their target price on Zscaler from $220.00 to $250.00 and gave the stock a "neutral" rating in a report on Thursday, May 15th. Robert W. Baird upped their price objective on shares of Zscaler from $295.00 to $315.00 and gave the stock an "outperform" rating in a research note on Friday, May 30th. Bank of America raised shares of Zscaler from a "neutral" rating to a "buy" rating and raised their target price for the company from $215.00 to $240.00 in a research report on Friday, March 7th. Barclays boosted their price objective on shares of Zscaler from $275.00 to $290.00 and gave the stock an "overweight" rating in a research note on Friday, May 30th. Finally, Truist Financial reiterated a "buy" rating and issued a $300.00 price target (up from $260.00) on shares of Zscaler in a report on Friday, May 30th. Ten analysts have rated the stock with a hold rating, twenty-seven have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, Zscaler has a consensus rating of "Moderate Buy" and an average price target of $280.76.

Zscaler Price Performance

Shares of ZS traded up $6.30 during midday trading on Friday, hitting $301.33. The stock had a trading volume of 785,949 shares, compared to its average volume of 2,058,284. Zscaler has a 1 year low of $153.45 and a 1 year high of $303.37. The stock's 50 day moving average is $223.97 and its 200 day moving average is $207.56. The firm has a market cap of $46.62 billion, a PE ratio of -1,209.58 and a beta of 1.14.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its quarterly earnings data on Thursday, May 29th. The company reported $0.84 earnings per share for the quarter, topping analysts' consensus estimates of $0.76 by $0.08. Zscaler had a negative net margin of 1.58% and a negative return on equity of 0.75%. The company had revenue of $678.03 million for the quarter, compared to analyst estimates of $667.13 million. During the same period in the prior year, the company posted $0.88 EPS. The firm's revenue for the quarter was up 22.6% on a year-over-year basis. As a group, equities research analysts expect that Zscaler will post -0.1 earnings per share for the current fiscal year.

Insider Activity at Zscaler

In related news, major shareholder Ajay Mangal sold 190,480 shares of Zscaler stock in a transaction on Monday, March 17th. The shares were sold at an average price of $200.69, for a total value of $38,227,431.20. Following the sale, the insider now owns 2,580,210 shares of the company's stock, valued at approximately $517,822,344.90. This trade represents a 6.87% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Jagtar Singh Chaudhry sold 2,155 shares of the firm's stock in a transaction dated Tuesday, March 18th. The shares were sold at an average price of $199.15, for a total transaction of $429,168.25. Following the completion of the transaction, the chief executive officer now directly owns 356,414 shares in the company, valued at $70,979,848.10. This represents a 0.60% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 241,771 shares of company stock worth $50,165,040. 18.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Zscaler

A number of large investors have recently made changes to their positions in ZS. ORG Partners LLC grew its holdings in Zscaler by 284.8% in the 1st quarter. ORG Partners LLC now owns 127 shares of the company's stock valued at $26,000 after buying an additional 94 shares in the last quarter. SVB Wealth LLC acquired a new position in shares of Zscaler during the 1st quarter valued at about $26,000. Global X Japan Co. Ltd. grew its holdings in shares of Zscaler by 127.4% in the fourth quarter. Global X Japan Co. Ltd. now owns 141 shares of the company's stock valued at $25,000 after purchasing an additional 79 shares during the period. Goodman Advisory Group LLC acquired a new stake in Zscaler during the first quarter worth about $29,000. Finally, N.E.W. Advisory Services LLC purchased a new position in Zscaler during the first quarter worth about $29,000. 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.