Zscaler (NASDAQ:ZS) Shares Down 4.9% – Here’s Why

Zscaler, Inc. (NASDAQ:ZS) traded down 4.9% during mid-day trading on Wednesday . The stock traded as low as $190.31 and last traded at $190.54. 1,372,805 shares were traded during trading, a decline of 33% from the average session volume of 2,046,168 shares. The stock had previously closed at $200.45.

Analyst Ratings Changes

Several analysts recently weighed in on the company. Bank of America cut Zscaler from a “buy” rating to a “neutral” rating and dropped their price target for the stock from $265.00 to $195.00 in a report on Wednesday, September 4th. JMP Securities restated a “market outperform” rating and set a $240.00 price objective (down from $270.00) on shares of Zscaler in a research report on Tuesday, December 3rd. Cantor Fitzgerald raised Zscaler to a “hold” rating in a report on Monday, November 18th. KeyCorp boosted their price target on Zscaler from $245.00 to $250.00 and gave the stock an “overweight” rating in a report on Tuesday, December 3rd. Finally, Barclays boosted their target price on Zscaler from $200.00 to $220.00 and gave the stock an “overweight” rating in a research note on Thursday, November 21st. Eleven equities research analysts have rated the stock with a hold rating and twenty-three have given a buy rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $224.84.

Zscaler Stock Performance

The company has a market cap of $28.49 billion, a PE ratio of -742.76 and a beta of 0.82. The company’s 50 day moving average price is $197.97 and its 200-day moving average price is $187.59.

Zscaler (NASDAQ:ZS) last posted its earnings results on Monday, December 2nd. The company reported $0.77 earnings per share for the quarter, topping the consensus estimate of $0.63 by $0.14. The firm had revenue of $628.00 million during the quarter, compared to the consensus estimate of $605.51 million. Zscaler had a negative net margin of 1.58% and a negative return on equity of 0.75%. The company’s revenue was up 26.4% on a year-over-year basis. During the same quarter last year, the company earned ($0.18) earnings per share. Equities research analysts expect that Zscaler, Inc. will post -0.24 EPS for the current year.

Insider Buying and Selling at Zscaler

In other Zscaler news, Director Andrew William Fraser Brown sold 8,000 shares of Zscaler stock in a transaction dated Monday, September 23rd. The stock was sold at an average price of $174.10, for a total transaction of $1,392,800.00. Following the completion of the sale, the director now owns 25,907 shares of the company’s stock, valued at $4,510,408.70. The trade was a 23.59 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Robert Schlossman sold 4,947 shares of the firm’s stock in a transaction dated Monday, September 30th. The shares were sold at an average price of $170.22, for a total value of $842,078.34. Following the transaction, the insider now directly owns 107,241 shares in the company, valued at approximately $18,254,563.02. This represents a 4.41 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 14,382 shares of company stock valued at $2,495,618 in the last three months. Company insiders own 18.10% of the company’s stock.

Institutional Investors Weigh In On Zscaler

A number of large investors have recently added to or reduced their stakes in the company. LaFleur & Godfrey LLC boosted its holdings in shares of Zscaler by 8.8% during the 2nd quarter. LaFleur & Godfrey LLC now owns 58,052 shares of the company’s stock valued at $11,157,000 after buying an additional 4,671 shares in the last quarter. Louisiana State Employees Retirement System boosted its position in shares of Zscaler by 2.6% in the 2nd quarter. Louisiana State Employees Retirement System now owns 11,900 shares of the company’s stock worth $2,287,000 after purchasing an additional 300 shares in the last quarter. Zweig DiMenna Associates LLC boosted its position in shares of Zscaler by 18.0% in the 2nd quarter. Zweig DiMenna Associates LLC now owns 44,691 shares of the company’s stock worth $8,589,000 after purchasing an additional 6,813 shares in the last quarter. TrueWealth Advisors LLC purchased a new stake in shares of Zscaler in the 2nd quarter worth approximately $312,000. Finally, First National Bank of Hutchinson bought a new stake in Zscaler in the second quarter worth $651,000. Institutional investors own 46.45% of the company’s stock.

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.