Zscaler (NASDAQ:ZS) Shares Down 2.2% - Should You Sell?

Shares of Zscaler, Inc. (NASDAQ:ZS - Get Free Report) dropped 2.2% during trading on Tuesday . The stock traded as low as $310.01 and last traded at $308.57. Approximately 426,714 shares changed hands during trading, a decline of 79% from the average daily volume of 2,060,662 shares. The stock had previously closed at $315.45.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the company. Robert W. Baird raised their price target on Zscaler from $295.00 to $315.00 and gave the stock an "outperform" rating in a research note on Friday, May 30th. Needham & Company LLC lifted their target price on shares of Zscaler from $240.00 to $310.00 and gave the company a "buy" rating in a research note on Friday, May 30th. FBN Securities raised shares of Zscaler to a "strong-buy" rating in a research report on Friday, May 30th. Wedbush raised their price target on shares of Zscaler from $240.00 to $300.00 and gave the company an "outperform" rating in a report on Friday, May 30th. Finally, Wells Fargo & Company raised shares of Zscaler from an "equal weight" rating to an "overweight" rating and lifted their price objective for the company from $260.00 to $385.00 in a research note on Friday, June 13th. Eight investment analysts have rated the stock with a hold rating, twenty-nine have issued a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $296.82.

Zscaler Stock Performance

The firm's 50-day moving average is $277.85 and its two-hundred day moving average is $225.62. The stock has a market cap of $48.65 billion, a P/E ratio of -1,201.69 and a beta of 1.11.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings data on Thursday, May 29th. The company reported $0.84 EPS for the quarter, topping 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 firm had revenue of $678.03 million during the quarter, compared to analyst estimates of $667.13 million. During the same period last year, the company earned $0.88 earnings per share. The company's revenue was up 22.6% on a year-over-year basis. As a group, research analysts forecast that Zscaler, Inc. will post -0.1 EPS for the current year.

Insider Activity

In related news, insider Adam Geller sold 3,662 shares of the company's stock in a transaction on Wednesday, June 18th. The shares were 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 in the company, valued at $14,358,483.36. This represents a 7.26% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Syam Nair sold 28,947 shares of the firm's stock in a transaction dated Friday, May 16th. The stock was sold at an average price of $250.00, for a total value of $7,236,750.00. Following the sale, the insider directly owned 110,566 shares in the company, valued at approximately $27,641,500. This represents a 20.75% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 200,793 shares of company stock valued at $58,752,794. Insiders own 18.10% of the company's stock.

Institutional Investors Weigh In On Zscaler

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Parisi Gray Wealth Management bought a new position in shares of Zscaler during the second quarter worth about $801,000. Avity Investment Management Inc. acquired a new position in Zscaler during the 2nd quarter worth approximately $228,000. OMNI 360 Wealth Inc. bought a new position in shares of Zscaler during the 2nd quarter worth approximately $306,000. Fiduciary Financial Group LLC bought a new position in shares of Zscaler during the 2nd quarter worth approximately $213,000. Finally, Norway Savings Bank raised its holdings in shares of Zscaler by 6.1% in the second quarter. Norway Savings Bank now owns 5,965 shares of the company's stock valued at $1,873,000 after purchasing an additional 344 shares during the last quarter. 46.45% of the stock is currently owned by institutional investors and hedge funds.

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.