Zscaler (NASDAQ:ZS) Stock Price Down 4.1% – What’s Next?

Zscaler, Inc. (NASDAQ:ZS)’s share price fell 4.1% on Tuesday . The stock traded as low as $169.71 and last traded at $168.7710. 711,371 shares changed hands during trading, a decline of 79% from the average daily volume of 3,339,190 shares. The stock had previously closed at $176.06.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on ZS shares. B. Riley Financial cut their price objective on shares of Zscaler from $225.00 to $215.00 and set a “buy” rating for the company in a report on Wednesday, May 27th. The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $179.00 target price on shares of Zscaler in a research note on Wednesday, May 27th. Sanford C. Bernstein reduced their price target on Zscaler from $228.00 to $224.00 and set an “outperform” rating on the stock in a report on Wednesday, May 27th. KeyCorp boosted their price target on shares of Zscaler from $185.00 to $210.00 and gave the company an “overweight” rating in a research report on Friday. Finally, Citizens Jmp dropped their price target on shares of Zscaler from $290.00 to $210.00 and set a “market outperform” rating for the company in a research note on Friday, May 1st. Thirty-four investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $215.92.

Zscaler Stock Performance

The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. The company has a market capitalization of $27.19 billion, a PE ratio of -350.29, a PEG ratio of 106.97 and a beta of 0.94. The stock’s fifty day simple moving average is $152.01 and its 200-day simple moving average is $150.11.

Zscaler (NASDAQ:ZS) last announced its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.01 by $0.07. The company had revenue of $850.48 million during the quarter, compared to analysts’ expectations of $835.14 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The firm’s quarterly revenue was up 25.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.84 earnings per share. On average, research analysts predict that Zscaler, Inc. will post 0.13 earnings per share for the current fiscal year.

Insider Buying and Selling at Zscaler

In related news, CFO Kevin Rubin sold 503 shares of the company’s stock in a transaction on Monday, July 27th. The stock was sold at an average price of $147.12, for a total transaction of $74,001.36. Following the completion of the transaction, the chief financial officer directly owned 41,398 shares in the company, valued at $6,090,473.76. This represents a 1.20% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Adam Geller sold 2,817 shares of the business’s stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $122.60, for a total transaction of $345,364.20. Following the transaction, the insider directly owned 42,314 shares of the company’s stock, valued at $5,187,696.40. The trade was a 6.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 16,269 shares of company stock worth $2,052,589 in the last ninety days. 17.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Kentucky Retirement Systems Insurance Trust Fund lifted its position in shares of Zscaler by 1.4% during the 3rd quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 2,569 shares of the company’s stock valued at $770,000 after acquiring an additional 36 shares during the last quarter. Parallel Advisors LLC lifted its position in Zscaler by 10.9% in the 3rd quarter. Parallel Advisors LLC now owns 397 shares of the company’s stock worth $119,000 after buying an additional 39 shares in the last quarter. Smartleaf Asset Management LLC boosted its position in Zscaler by 7.5% during the second quarter. Smartleaf Asset Management LLC now owns 648 shares of the company’s stock valued at $204,000 after purchasing an additional 45 shares during the last quarter. Larson Financial Group LLC grew its stake in shares of Zscaler by 2.6% in the 3rd quarter. Larson Financial Group LLC now owns 2,040 shares of the company’s stock valued at $611,000 after buying an additional 52 shares in the last quarter. Finally, Crossmark Global Holdings Inc. grew its position in Zscaler by 6.1% in the third quarter. Crossmark Global Holdings Inc. now owns 976 shares of the company’s stock worth $292,000 after acquiring an additional 56 shares in the last quarter. 46.45% of the stock is currently owned by institutional investors.

Zscaler Company Profile

Zscaler is a cloud security company that delivers a cloud-native platform to protect users, applications and data as organizations move away from traditional, network-centric security architectures. The company focuses on a zero trust approach that assumes no implicit trust for users or devices, providing secure access to the internet, SaaS applications and private applications regardless of where users are located. Zscaler positions its services as an alternative to legacy appliances and site-centric VPNs, aiming to simplify security while enabling modern, distributed workforces.

Key offerings are built around the Zscaler Zero Trust Exchange, a multi-tenant cloud platform that enforces security and access policies in-line.