Zscaler (NASDAQ:ZS) Stock Price Down 5% - Should You Sell?

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

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on ZS. Truist Financial reaffirmed a "buy" rating and issued a $300.00 price objective (up previously from $260.00) on shares of Zscaler in a research report on Friday, May 30th. Rosenblatt Securities lifted their price target on Zscaler from $235.00 to $315.00 and gave the company a "buy" rating in a report on Friday, May 30th. Morgan Stanley upped their price objective on shares of Zscaler from $200.00 to $280.00 and gave the company an "equal weight" rating in a research note on Friday, May 30th. JPMorgan Chase & Co. increased their price objective on shares of Zscaler from $292.00 to $348.00 and gave the stock an "overweight" rating in a report on Monday, June 16th. Finally, Wells Fargo & Company upgraded shares of Zscaler from an "equal weight" rating to an "overweight" rating and boosted their target price for the company from $260.00 to $385.00 in a report on Friday, June 13th. Eight equities research analysts have rated the stock with a hold rating, twenty-nine have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $296.82.

Zscaler Price 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 business's fifty day simple moving average is $282.23 and its 200 day simple moving average is $228.27.

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

Insider Transactions at Zscaler

In related news, insider Adam Geller sold 3,662 shares of Zscaler stock in a transaction dated Wednesday, June 18th. The stock was sold at an average price of $306.72, for a total value of $1,123,208.64. Following the transaction, the insider owned 46,813 shares of the company's stock, valued at approximately $14,358,483.36. This trade represents a 7.26% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Syam Nair sold 4,064 shares of Zscaler stock in a transaction dated Tuesday, June 17th. The stock was sold at an average price of $303.70, for a total value of $1,234,236.80. Following the completion of the transaction, the insider directly owned 106,659 shares in the company, valued at $32,392,338.30. This represents a 3.67% decrease in their position. The disclosure for this sale can be found here. Insiders sold 200,793 shares of company stock valued at $58,752,794 in the last quarter. 18.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Zscaler

Institutional investors and hedge funds have recently bought and sold shares of the business. Proficio Capital Partners LLC acquired a new stake in shares of Zscaler during the 4th quarter valued at about $5,305,000. Raymond James Financial Inc. acquired a new stake in shares of Zscaler during the 4th quarter valued at about $28,072,000. Wealthfront Advisers LLC lifted its holdings in shares of Zscaler by 4.1% during the 4th quarter. Wealthfront Advisers LLC now owns 5,780 shares of the company's stock valued at $1,043,000 after buying an additional 229 shares during the last quarter. HighTower Advisors LLC lifted its holdings in shares of Zscaler by 12.1% during the 4th quarter. HighTower Advisors LLC now owns 72,391 shares of the company's stock valued at $13,060,000 after buying an additional 7,817 shares during the last quarter. Finally, Erste Asset Management GmbH lifted its holdings in Zscaler by 0.6% in the 4th quarter. Erste Asset Management GmbH now owns 9,780 shares of the company's stock worth $1,805,000 after purchasing an additional 56 shares during the last quarter. Hedge funds and other institutional investors own 46.45% of the company's stock.

Zscaler Company Profile

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.