Zscaler (NASDAQ:ZS) Shares Down 4.9% - Should You Sell?

Zscaler, Inc. (NASDAQ:ZS - Get Free Report) was down 4.9% on Wednesday . The stock traded as low as $190.31 and last traded at $190.54. Approximately 1,372,805 shares changed hands during trading, a decline of 33% from the average daily volume of 2,046,168 shares. The stock had previously closed at $200.45.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the company. Susquehanna boosted their target price on Zscaler from $210.00 to $225.00 and gave the company a "positive" rating in a research note on Tuesday, December 3rd. Guggenheim restated a "neutral" rating on shares of Zscaler in a research note on Tuesday, December 3rd. JMP Securities reiterated a "market outperform" rating and set a $240.00 target price (down previously from $270.00) on shares of Zscaler in a research report on Tuesday, December 3rd. Canaccord Genuity Group boosted their price target on shares of Zscaler from $220.00 to $230.00 and gave the company a "buy" rating in a research report on Tuesday, December 3rd. Finally, Cantor Fitzgerald upgraded shares of Zscaler to a "hold" rating in a research note on Monday, November 18th. Eleven research analysts have rated the stock with a hold rating and twenty-three have given a buy rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $224.84.

Zscaler Price Performance

The stock has a market cap of $28.49 billion, a P/E ratio of -742.76 and a beta of 0.82. The company has a 50 day simple moving average of $197.97 and a 200-day simple moving average of $187.58.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings data on Monday, December 2nd. The company reported $0.77 earnings per share for the quarter, beating analysts' consensus estimates of $0.63 by $0.14. The company had revenue of $628.00 million for the quarter, compared to analysts' expectations of $605.51 million. Zscaler had a negative return on equity of 0.75% and a negative net margin of 1.58%. Zscaler's revenue for the quarter was up 26.4% compared to the same quarter last year. During the same period last year, the firm posted ($0.18) EPS. As a group, research analysts expect that Zscaler, Inc. will post -0.24 earnings per share for the current year.

Insider Activity

In other Zscaler news, insider Robert Schlossman sold 1,435 shares of the business's stock in a transaction that occurred on Wednesday, October 9th. The stock was 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 in the company, 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 document filed with the SEC, which can be accessed through this hyperlink. Also, Director Andrew William Fraser Brown sold 8,000 shares of the stock in a transaction that occurred on Monday, September 23rd. The shares were sold at an average price of $174.10, for a total value of $1,392,800.00. Following the sale, the director now directly owns 25,907 shares of the company's stock, valued at approximately $4,510,408.70. This trade represents a 23.59 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 14,382 shares of company stock valued at $2,495,618. Corporate insiders own 18.10% of the company's stock.

Hedge Funds Weigh In On Zscaler

Hedge funds have recently modified their holdings of the company. Champlain Investment Partners LLC increased its stake in shares of Zscaler by 28.2% during the third quarter. Champlain Investment Partners LLC now owns 1,289,350 shares of the company's stock valued at $220,401,000 after buying an additional 283,540 shares during the period. International Assets Investment Management LLC boosted its holdings in Zscaler by 13,498.6% in the third quarter. International Assets Investment Management LLC now owns 285,299 shares of the company's stock valued at $48,769,000 after acquiring an additional 283,201 shares in the last quarter. GuoLine Advisory Pte Ltd purchased a new position in Zscaler during the 3rd quarter valued at $32,660,000. Massachusetts Financial Services Co. MA bought a new position in Zscaler in the 2nd quarter worth $25,287,000. Finally, Westfield Capital Management Co. LP lifted its position in shares of Zscaler by 33.8% in the 3rd quarter. Westfield Capital Management Co. LP now owns 399,516 shares of the company's stock worth $68,293,000 after purchasing an additional 100,814 shares during the period. Hedge funds and other 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.