Zscaler (NASDAQ:ZS) Shares Gap Down on Analyst Downgrade

Zscaler, Inc. (NASDAQ:ZS)’s stock price gapped down prior to trading on Tuesday after Loop Capital lowered their price target on the stock from $200.00 to $195.00. The stock had previously closed at $208.51, but opened at $195.90. Loop Capital currently has a hold rating on the stock. Zscaler shares last traded at $198.21, with a volume of 2,179,472 shares changing hands.

Several other analysts also recently commented on the company. Needham & Company LLC reaffirmed a “buy” rating and set a $240.00 price objective on shares of Zscaler in a research note on Tuesday. Piper Sandler raised their price target on Zscaler from $215.00 to $235.00 and gave the stock an “overweight” rating in a research report on Tuesday. Royal Bank of Canada reiterated an “outperform” rating and issued a $230.00 price objective on shares of Zscaler in a research report on Tuesday. BNP Paribas started coverage on shares of Zscaler in a report on Tuesday, October 8th. They set a “neutral” rating and a $180.00 target price on the stock. Finally, Bank of America cut shares of Zscaler from a “buy” rating to a “neutral” rating and reduced their price target for the company from $265.00 to $195.00 in a report on Wednesday, September 4th. Eleven research analysts have rated the stock with a hold rating and twenty-three have issued a buy rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $224.38.

Insider Transactions at Zscaler

In other news, insider Robert Schlossman sold 1,435 shares of the business’s stock in a transaction dated Wednesday, October 9th. The shares were sold at an average price of $181.70, for a total value of $260,739.50. Following the completion of the sale, the insider now owns 105,806 shares of the company’s stock, valued at approximately $19,224,950.20. The trade was a 1.34 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Remo Canessa sold 8,455 shares of the firm’s stock in a transaction dated Tuesday, September 17th. The stock was sold at an average price of $171.28, for a total transaction of $1,448,172.40. Following the transaction, the chief financial officer now directly owns 231,793 shares in the company, valued at approximately $39,701,505.04. This represents a 3.52 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 30,502 shares of company stock worth $5,256,651. 18.10% of the stock is owned by insiders.

Institutional Investors Weigh In On Zscaler

A number of large investors have recently added to or reduced their stakes in the stock. Quest Partners LLC acquired a new stake in Zscaler during the second quarter worth about $28,000. Prestige Wealth Management Group LLC acquired a new stake in shares of Zscaler during the 3rd quarter worth approximately $31,000. True Wealth Design LLC increased its stake in Zscaler by 18,500.0% in the third quarter. True Wealth Design LLC now owns 186 shares of the company’s stock valued at $32,000 after acquiring an additional 185 shares during the last quarter. Wilmington Savings Fund Society FSB acquired a new position in Zscaler during the third quarter valued at approximately $38,000. Finally, Asset Dedication LLC lifted its stake in Zscaler by 436.8% during the second quarter. Asset Dedication LLC now owns 204 shares of the company’s stock worth $39,000 after purchasing an additional 166 shares during the last quarter. Institutional investors and hedge funds own 46.45% of the company’s stock.

Zscaler Stock Down 4.7 %

The company has a 50 day moving average price of $190.79 and a 200-day moving average price of $185.01.

Zscaler (NASDAQ:ZS) last issued its earnings results on Monday, December 2nd. The company reported $0.77 EPS for the quarter, topping the consensus estimate of $0.63 by $0.14. Zscaler had a negative return on equity of 0.80% and a negative net margin of 1.58%. The firm had revenue of $628.00 million during the quarter, compared to the consensus estimate of $605.51 million. During the same quarter in the previous year, the firm earned ($0.18) earnings per share. The business’s quarterly revenue was up 26.4% on a year-over-year basis. On average, sell-side analysts expect that Zscaler, Inc. will post -0.95 earnings per share for the current year.

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.