Zscaler (NASDAQ:ZS) Shares Up 6.7% After Earnings Beat

Zscaler, Inc. (NASDAQ:ZS – Get Rating)’s stock price shot up 6.7% on Friday following a better than expected earnings announcement. The company traded as high as $162.34 and last traded at $151.63. 34,900 shares were traded during trading, a decline of 99% from the average session volume of 2,712,420 shares. The stock had previously closed at $142.13.

The company reported $0.17 earnings per share for the quarter, topping the consensus estimate of $0.11 by $0.06. Zscaler had a negative return on equity of 51.11% and a negative net margin of 38.47%. The firm had revenue of $286.81 million for the quarter, compared to analyst estimates of $271.47 million. During the same period last year, the company earned ($0.30) earnings per share. The firm’s revenue for the quarter was up 62.6% on a year-over-year basis.

A number of equities analysts recently weighed in on the company. Wells Fargo & Company decreased their price target on Zscaler from $350.00 to $200.00 and set a “na” rating for the company in a research report on Monday, May 16th. Wolfe Research cut their price target on Zscaler from $340.00 to $275.00 and set an “outperform” rating for the company in a research note on Friday, February 25th. Truist Financial cut their price objective on Zscaler from $335.00 to $275.00 and set a “buy” rating on the stock in a research note on Tuesday, May 10th. JPMorgan Chase & Co. cut their price objective on Zscaler from $320.00 to $265.00 and set an “underweight” rating on the stock in a research note on Friday, February 25th. Finally, BTIG Research lowered their target price on Zscaler from $326.00 to $184.00 and set a “buy” rating on the stock in a report on Friday. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and twenty-four have given a buy rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Buy” and a consensus target price of $254.40.

In related news, Director Karen Blasing sold 1,000 shares of Zscaler stock in a transaction that occurred on Monday, April 4th. The shares were sold at an average price of $250.00, for a total value of $250,000.00. Following the sale, the director now owns 2,381 shares of the company’s stock, valued at approximately $595,250. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, President Amit Sinha sold 6,000 shares of Zscaler stock in a transaction that occurred on Monday, April 4th. The stock was sold at an average price of $250.89, for a total transaction of $1,505,340.00. Following the completion of the sale, the president now directly owns 275,860 shares in the company, valued at approximately $69,210,515.40. The disclosure for this sale can be found here. Insiders have sold a total of 36,779 shares of company stock valued at $7,896,977 in the last quarter. Company insiders own 20.30% of the company’s stock.

Hedge funds have recently modified their holdings of the business. San Luis Wealth Advisors LLC purchased a new position in Zscaler in the first quarter worth $30,000. Mascoma Wealth Management LLC purchased a new position in Zscaler in the fourth quarter worth $31,000. AlphaCentric Advisors LLC purchased a new position in Zscaler in the fourth quarter worth $33,000. JFS Wealth Advisors LLC grew its position in Zscaler by 110.0% in the fourth quarter. JFS Wealth Advisors LLC now owns 105 shares of the company’s stock worth $34,000 after acquiring an additional 55 shares in the last quarter. Finally, Arlington Partners LLC grew its position in Zscaler by 122.4% in the first quarter. Arlington Partners LLC now owns 109 shares of the company’s stock worth $26,000 after acquiring an additional 60 shares in the last quarter. 43.41% of the stock is currently owned by institutional investors and hedge funds.

The firm’s 50-day simple moving average is $199.67 and its 200-day simple moving average is $252.52. The company has a quick ratio of 2.38, a current ratio of 2.38 and a debt-to-equity ratio of 1.74. The firm has a market capitalization of $22.14 billion, a PE ratio of -65.42 and a beta of 1.09.

About Zscaler (NASDAQ:ZS)

Zscaler, Inc operates as a cloud security company worldwide. The company provides Zscaler Internet Access solution that provides users, servers, operational technology, Internet of Things device 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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