Zscaler (NASDAQ:ZS) Shares Gap Down - Here's Why

Zscaler, Inc. (NASDAQ:ZS - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $315.32, but opened at $306.59. Zscaler shares last traded at $310.18, with a volume of 418,299 shares changing hands.

Wall Street Analyst Weigh In

Several research analysts have commented on ZS shares. Scotiabank lifted their price objective on shares of Zscaler from $310.00 to $360.00 and gave the stock a "sector outperform" rating in a research note on Friday, June 6th. The Goldman Sachs Group set a $207.00 price objective on shares of Zscaler and gave the stock a "neutral" rating in a research report on Thursday, March 6th. Barclays raised their price target on Zscaler from $275.00 to $290.00 and gave the stock an "overweight" rating in a research note on Friday, May 30th. Susquehanna raised their price target on shares of Zscaler from $245.00 to $320.00 and gave the stock a "positive" rating in a research note on Friday, May 30th. Finally, Citigroup reiterated a "buy" rating and issued a $240.00 target price (up from $235.00) on shares of Zscaler in a report on Wednesday, March 5th. Eight analysts have rated the stock with a hold rating, twenty-nine have assigned a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat.com, Zscaler currently has a consensus rating of "Moderate Buy" and a consensus price target of $295.50.

Zscaler Price Performance

The stock has a market capitalization of $48.88 billion, a P/E ratio of -1,207.46 and a beta of 1.09. The stock's fifty day moving average is $263.30 and its two-hundred day moving average is $220.00.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings data on Thursday, May 29th. The company reported $0.84 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.76 by $0.08. The firm had revenue of $678.03 million during the quarter, compared to the consensus estimate of $667.13 million. Zscaler had a negative return on equity of 0.59% and a negative net margin of 1.52%. The business's revenue for the quarter was up 22.6% on a year-over-year basis. During the same period in the prior year, the business earned $0.88 EPS. Analysts expect that Zscaler, Inc. will post -0.1 EPS for the current year.

Insider Activity

In other news, insider Robert Schlossman sold 4,618 shares of the business'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 in the company, valued at $28,683,600. The trade was a 4.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, 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 completion of the sale, the insider owned 46,813 shares of the company's stock, valued at approximately $14,358,483.36. The trade was a 7.26% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 210,793 shares of company stock valued at $60,812,794. 18.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. ORG Partners LLC increased its position in shares of Zscaler by 284.8% during the first quarter. ORG Partners LLC now owns 127 shares of the company's stock worth $26,000 after acquiring an additional 94 shares in the last quarter. SVB Wealth LLC acquired a new position in shares of Zscaler during the first quarter worth about $26,000. Summit Securities Group LLC bought a new stake in Zscaler in the 4th quarter valued at approximately $27,000. Colonial Trust Co SC bought a new stake in shares of Zscaler in the fourth quarter worth $28,000. Finally, Goodman Advisory Group LLC acquired a new position in Zscaler during the first quarter valued at approximately $29,000. Institutional investors 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.