Zscaler (NASDAQ:ZS) Trading Down 5% - Here's Why

Zscaler, Inc. (NASDAQ:ZS - Get Free Report)'s stock price fell 5% during mid-day trading on Thursday . The stock traded as low as $299.47 and last traded at $300.73. 795,140 shares changed hands during mid-day trading, a decline of 61% from the average session volume of 2,062,381 shares. The stock had previously closed at $316.50.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on ZS shares. Stephens restated an "overweight" rating and set a $255.00 target price on shares of Zscaler in a report on Tuesday, May 27th. Loop Capital boosted their price objective on shares of Zscaler from $250.00 to $260.00 and gave the company a "hold" rating in a report on Friday, May 30th. Mizuho increased their target price on shares of Zscaler from $275.00 to $290.00 and gave the stock a "neutral" rating in a report on Wednesday, June 4th. Rosenblatt Securities lifted their price target on shares of Zscaler from $235.00 to $315.00 and gave the stock a "buy" rating in a research report on Friday, May 30th. Finally, Wells Fargo & Company upgraded 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 report on Friday, June 13th. Eight research analysts have rated the stock with a hold rating, twenty-nine have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, Zscaler has a consensus rating of "Moderate Buy" and a consensus target price of $296.82.

Zscaler Stock Performance

The stock has a market cap of $45.11 billion, a price-to-earnings ratio of -1,114.38 and a beta of 1.11. The company has a 50-day simple moving average of $281.04 and a two-hundred day simple moving average of $227.00.

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

Insider Buying and Selling at Zscaler

In other Zscaler news, insider Robert Schlossman sold 4,618 shares of the firm's stock in a transaction on Wednesday, June 4th. The stock was sold at an average price of $300.00, for a total transaction of $1,385,400.00. Following the completion of the sale, the insider owned 95,612 shares of the company's stock, valued at $28,683,600. This trade represents a 4.61% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Syam Nair sold 28,947 shares of the stock in a transaction dated Friday, May 16th. The shares were sold at an average price of $250.00, for a total transaction of $7,236,750.00. Following the completion of the transaction, the insider directly owned 110,566 shares in the company, valued at $27,641,500. The trade was a 20.75% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 200,793 shares of company stock worth $58,752,794 in the last three months. 18.10% of the stock is owned by insiders.

Institutional Investors Weigh In On Zscaler

Several hedge funds have recently bought and sold shares of ZS. Vanguard Group Inc. boosted its holdings in Zscaler by 3.1% in the 1st quarter. Vanguard Group Inc. now owns 9,890,506 shares of the company's stock valued at $1,962,474,000 after purchasing an additional 294,034 shares during the period. Goldman Sachs Group Inc. boosted its stake in shares of Zscaler by 23.4% in the first quarter. Goldman Sachs Group Inc. now owns 3,048,238 shares of the company's stock valued at $604,831,000 after buying an additional 578,883 shares during the period. T. Rowe Price Investment Management Inc. acquired a new stake in Zscaler during the first quarter worth approximately $516,622,000. Geode Capital Management LLC increased its stake in Zscaler by 2.0% during the 4th quarter. Geode Capital Management LLC now owns 1,658,406 shares of the company's stock worth $298,710,000 after acquiring an additional 32,545 shares during the period. Finally, Pictet Asset Management Holding SA raised its holdings in Zscaler by 25.8% in the 4th quarter. Pictet Asset Management Holding SA now owns 1,618,176 shares of the company's stock valued at $291,935,000 after acquiring an additional 332,307 shares in the last quarter. 46.45% of the stock is currently 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.