Zscaler (NASDAQ:ZS) Trading 1.4% Higher - Here's Why

Key Points

• Zscaler's stock price rose by 1.4% to $288.22, with trading volume significantly down to 174,490 shares compared to an average of 2,242,727 shares.
• Analysts have increased their price targets for Zscaler, with KeyCorp raising it to $310, while other firms like Barclays and Wedbush also set higher targets.
• The company reported $678.03 million in revenue for the last quarter, exceeding estimates, and showed a year-over-year revenue growth of 22.6%.
• Insider transactions included significant stock sales, with major shareholder Ajay Mangal selling 120,000 shares valued at approximately $36 million.

Zscaler, Inc. (NASDAQ:ZS - Get Free Report)'s stock price traded up 1.4% during trading on Friday . The company traded as high as $288.31 and last traded at $288.22. 174,490 shares changed hands during mid-day trading, a decline of 92% from the average session volume of 2,242,727 shares. The stock had previously closed at $284.30.

Analysts Set New Price Targets

ZS has been the topic of several research analyst reports. KeyCorp boosted their price objective on Zscaler from $290.00 to $310.00 and gave the company an "overweight" rating in a report on Friday, May 30th. Barclays boosted their price objective on Zscaler from $275.00 to $290.00 and gave the company an "overweight" rating in a report on Friday, May 30th. Wedbush boosted their price objective on Zscaler from $240.00 to $300.00 and gave the company an "outperform" rating in a report on Friday, May 30th. Evercore ISI boosted their price objective on Zscaler from $245.00 to $290.00 and gave the company an "outperform" rating in a report on Friday, May 30th. Finally, JMP Securities boosted their price objective on Zscaler from $310.00 to $355.00 and gave the company a "market outperform" rating in a report on Tuesday, July 1st. Seven 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's stock. Based on data from MarketBeat, Zscaler presently has an average rating of "Moderate Buy" and a consensus target price of $296.82.

Zscaler Stock Performance

The business has a 50-day simple moving average of $291.06 and a two-hundred day simple moving average of $234.09. The company has a market capitalization of $44.76 billion, a price-to-earnings ratio of -1,106.70 and a beta of 1.11.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its earnings results on Thursday, May 29th. The company reported $0.84 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.76 by $0.08. The business 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 company'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 posted $0.88 EPS. Research analysts predict that Zscaler, Inc. will post -0.1 EPS for the current fiscal year.

Insider Transactions at Zscaler

In related news, major shareholder Ajay Mangal sold 120,000 shares of the firm's stock in a transaction that occurred on Monday, June 9th. The stock was sold at an average price of $300.89, for a total value of $36,106,800.00. Following the completion of the transaction, the insider directly owned 2,550,210 shares of the company's stock, valued at $767,332,686.90. This trade represents a 4.49% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Robert Schlossman sold 4,618 shares of the firm's stock in a transaction that occurred on Wednesday, June 4th. The shares were sold at an average price of $300.00, for a total value of $1,385,400.00. Following the completion of the transaction, the insider directly owned 95,612 shares of the company's stock, valued at $28,683,600. The trade was a 4.61% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 200,793 shares of company stock worth $58,752,794 over the last ninety days. 18.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Zscaler

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

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