Zscaler (NASDAQ:ZS) Trading Down 1.1% - Should You Sell?
Zscaler (NASDAQ:ZS) shares fell 1.1% to $287.02, with trading volume down 89% from average levels. Analysts have mixed views, with Guggenheim maintaining a "neutral" rating, while JMP Securities and Scotiabank raised their price targets to $355.00 and $360.00, respectively. The company reported a 22.6% revenue increase year-over-year, with $678.03 million for the quarter. Insider selling has occurred, with significant shares sold recently. Institutional investors have also adjusted their stakes in Zscaler, reflecting ongoing interest in the stock.
Zscaler, Inc. (NASDAQ:ZS - Get Free Report)'s stock price dropped 1.1% during trading on Wednesday . The stock traded as low as $283.40 and last traded at $287.02. Approximately 249,943 shares were traded during mid-day trading, a decline of 89% from the average daily volume of 2,225,262 shares. The stock had previously closed at $290.07.
Wall Street Analyst Weigh In
- Expect Robust Growth From These 3 Cybersecurity Leaders
A number of research firms recently weighed in on ZS. Guggenheim reiterated a "neutral" rating on shares of Zscaler in a research note on Friday, May 30th. JMP Securities upped their target price on shares of Zscaler from $310.00 to $355.00 and gave the stock a "market outperform" rating in a research report on Tuesday, July 1st. Scotiabank boosted their price target 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. Evercore ISI upped their price objective on shares of Zscaler from $245.00 to $290.00 and gave the company an "outperform" rating in a research note on Friday, May 30th. Finally, Stifel Nicolaus upped their price objective on shares of Zscaler from $270.00 to $295.00 and gave the company a "buy" rating in a research note on Friday, May 30th. Seven investment analysts have rated the stock with a hold rating, twenty-nine have assigned a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $296.82.
Check Out Our Latest Stock Analysis on Zscaler
Zscaler Stock Performance
- Zscaler or CrowdStrike: Which Is the Better Buy in 2025?
The company has a market capitalization of $44.63 billion, a P/E ratio of -1,103.80 and a beta of 1.11. The firm's fifty day moving average is $293.25 and its 200 day moving average is $236.53.
Zscaler (NASDAQ:ZS - Get Free Report) last issued its earnings results on Thursday, May 29th. The company reported $0.84 EPS for the quarter, topping analysts' consensus estimates of $0.76 by $0.08. The business had revenue of $678.03 million for the quarter, compared to the consensus estimate of $667.13 million. Zscaler had a negative net margin of 1.52% and a negative return on equity of 0.59%. The company's revenue for the quarter was up 22.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.88 EPS. On average, analysts forecast that Zscaler, Inc. will post -0.1 EPS for the current year.
Insider Buying and Selling
- Top 5 Stocks for July: Momentum-Driven Picks to Watch Now
In related news, major shareholder Ajay Mangal sold 120,000 shares of the stock in a transaction that occurred on Monday, June 9th. The shares were sold at an average price of $300.89, for a total transaction of $36,106,800.00. Following the completion of the sale, the insider owned 2,550,210 shares of the company's stock, valued at $767,332,686.90. This represents a 4.49% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Adam Geller sold 3,662 shares of the stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $306.72, for a total transaction of $1,123,208.64. Following the sale, the insider directly owned 46,813 shares of the company's stock, valued at $14,358,483.36. The trade was a 7.26% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 200,793 shares of company stock valued at $58,752,794 over the last ninety days. Company insiders own 18.10% of the company's stock.
Institutional Trading of Zscaler
Several hedge funds and other institutional investors have recently added to or reduced their stakes in ZS. GAMMA Investing LLC grew its position in shares of Zscaler by 43.1% in the first quarter. GAMMA Investing LLC now owns 641 shares of the company's stock valued at $127,000 after purchasing an additional 193 shares during the period. Allworth Financial LP raised its stake in shares of Zscaler by 47.4% in the 1st quarter. Allworth Financial LP now owns 1,002 shares of the company's stock valued at $211,000 after acquiring an additional 322 shares during the period. Krane Funds Advisors LLC raised its stake in shares of Zscaler by 36.4% in the 1st quarter. Krane Funds Advisors LLC now owns 1,667 shares of the company's stock valued at $331,000 after acquiring an additional 445 shares during the period. Merit Financial Group LLC raised its stake in shares of Zscaler by 42.0% in the 1st quarter. Merit Financial Group LLC now owns 6,197 shares of the company's stock valued at $1,230,000 after acquiring an additional 1,832 shares during the period. Finally, Norges Bank purchased a new stake in Zscaler during the 4th quarter worth approximately $32,158,000. Institutional investors and hedge funds own 46.45% of the company's stock.
Zscaler Company Profile
(Get Free Report)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.
See Also
- Five stocks we like better than Zscaler
- Consumer Discretionary Stocks Explained
- Why Lyft’s Stock Volume Just Spiked—Is an EV Partnership Near?
- Top Stocks Investing in 5G Technology
- Global Value: 3 Stocks Under $10 Riding a Weak Dollar
- What Are Some of the Best Large-Cap Stocks to Buy?
- 3 Great Growth Stocks to Buy-and-Hold for the Next 10 Years
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.
Should You Invest $1,000 in Zscaler Right Now?
Before you consider Zscaler, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Zscaler wasn't on the list.
While Zscaler currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
