Zscaler (NASDAQ:ZS) Shares Down 5.5% – What’s Next?

Zscaler, Inc. (NASDAQ:ZS)’s share price dropped 5.5% during trading on Tuesday . The company traded as low as $178.15 and last traded at $178.0670. 775,379 shares traded hands during mid-day trading, a decline of 77% from the average session volume of 3,315,786 shares. The stock had previously closed at $188.38.

Analysts Set New Price Targets

Several research analysts have issued reports on ZS shares. Royal Bank Of Canada reiterated an “outperform” rating and issued a $200.00 price target on shares of Zscaler in a report on Wednesday, June 10th. Citigroup restated a “market outperform” rating on shares of Zscaler in a report on Wednesday, May 27th. Rosenblatt Securities reaffirmed a “buy” rating and set a $200.00 target price on shares of Zscaler in a research report on Wednesday, June 10th. HC Wainwright upgraded Zscaler from a “buy” rating to a “buy” rating in a report on Monday, May 18th. Finally, Scotiabank reduced their price target on shares of Zscaler from $190.00 to $175.00 and set a “sector outperform” rating for the company in a research report on Wednesday, May 27th. Thirty-four research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Zscaler presently has an average rating of “Moderate Buy” and a consensus target price of $213.10.

Zscaler Trading Down 3.2%

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 firm has a 50 day moving average price of $159.43 and a 200 day moving average price of $150.39. The stock has a market capitalization of $27.93 billion, a PE ratio of -359.85, a P/E/G ratio of 104.98 and a beta of 0.95.

Insider Activity

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,878 shares of the stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $363,865.54. Following the completion of the sale, the chief executive officer owned 343,038 shares in the company, valued at approximately $43,370,294.34. This trade represents a 0.83% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Kevin Rubin sold 3,000 shares of the company’s stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $124.22, for a total value of $372,660.00. Following the completion of the transaction, the chief financial officer directly owned 41,901 shares of the company’s stock, valued at approximately $5,204,942.22. This represents a 6.68% 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 sold 16,772 shares of company stock valued at $2,139,799 over the last quarter. 17.20% of the stock is owned by insiders.

Institutional Trading of Zscaler

A number of large investors have recently added to or reduced their stakes in the stock. Handelsbanken Fonder AB lifted its position in shares of Zscaler by 89.6% during the 2nd quarter. Handelsbanken Fonder AB now owns 60,933 shares of the company’s stock valued at $8,601,000 after buying an additional 28,792 shares during the last quarter. Assenagon Asset Management S.A. boosted its holdings in Zscaler by 6.6% in the 2nd quarter. Assenagon Asset Management S.A. now owns 193,297 shares of the company’s stock worth $27,284,000 after buying an additional 11,941 shares during the period. Oxbow Advisors LLC bought a new stake in Zscaler during the 4th quarter valued at $2,939,000. Qsemble Capital Management LP boosted its holdings in shares of Zscaler by 105.5% in the fourth quarter. Qsemble Capital Management LP now owns 15,773 shares of the company’s stock worth $3,548,000 after acquiring an additional 8,099 shares during the period. Finally, Bank of America Corp DE raised its stake in shares of Zscaler by 44.3% during the 1st quarter. Bank of America Corp DE now owns 779,245 shares of the company’s stock valued at $109,320,000 after purchasing an additional 239,326 shares during the period. Hedge funds and other institutional investors own 46.45% of the company’s stock.

About Zscaler

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.