In a recent research note issued to investors on September 19, 2023, analysts at Citigroup have increased their target price for Zscaler (NASDAQ:ZS) from $175.00 to $190.00. This update suggests a potential upside of 22.80% from the company’s previous closing price.
On Tuesday, NASDAQ ZS opened at $154.72. The company currently boasts a market capitalization of $22.77 billion and has a price-to-earnings ratio of -109.73, along with a beta of 0.85. Over the past 50 days, the stock’s simple moving average stood at $150.20, while its 200-day simple moving average reached $131.61. Zscaler’s share price has ranged between a low of $84.93 and a high of $185.99 over the past year.
Furthermore, the company maintains a debt-to-equity ratio of 1.56 and exhibits healthy current and quick ratios of 1.88 each.
Numerous institutional investors and hedge funds have recently made alterations to their positions in Zscaler as well. For instance, Private Trust Co. NA acquired a new stake in the company during the first quarter valued at approximately $29,000; Householder Group Estate & Retirement Specialist LLC also purchased shares during the same period valued at around $29,000; IFP Advisors Inc raised its stake in Zscaler by 60.5% during the second quarter and now owns 1,037 shares worth about $29,000 after acquiring an additional 391 shares; CoreCap Advisors LLC bought into Zscaler during the fourth quarter valued at approximately $38,000; lastly, KB Financial Partners LLC bought shares in the first quarter worth approximately $39,000 as well.
Moving on to financial performance, Zscaler last reported its earnings results on Tuesday, September 5th. The company posted earnings per share of $0.64 for the quarter, surpassing the consensus estimate of $0.49 by $0.15. In terms of revenue, Zscaler reported $455.00 million for the quarter, compared to the consensus estimate of $430.38 million. The company had a negative return on equity of 34.75% and a negative net margin of 12.51%. Notably, this represents a 43.0% increase in quarterly revenue compared to the same period last year. In the same quarter last year, Zscaler reported an earnings per share of ($0.40).
Equities research analysts predict that Zscaler will post -1.13 EPS for the current fiscal year.
Overall, with its updated target price and recent financial performance, Zscaler continues to generate interest from investors as it demonstrates strong growth potential in its sector.
Reference:
FlyOnTheWall (September 19, 2023). ‘&Zscaler (NASDAQ:ZS) had its target price upped by analysts at Citigroup from $175.00 to $190.00 in a research note issued to investors on Tuesday’.
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Positive Assessments and Insider Activities Highlight Zscaler’s Growing Market Confidence
In recent reports, several research firms have given their input on Zscaler (ZS), a leading cloud security company. Wells Fargo & Company, for example, has raised their target price for Zscaler from $175.00 to $200.00. Mizuho also lifted their price objective on the stock from $168.00 to $185.00 and provided a “buy” rating. In addition, Bank of America increased their price target from $175.00 to $180.00, while Wedbush raised theirs from $160.00 to $185.00 and labeled the stock as “outperform.” Furthermore, Oppenheimer moved their price objective up from $180.00 to $190.00.
These positive assessments indicate that Zscaler is gaining attention and confidence in the market, as it secures its position as a leading provider of cloud security solutions.
Thirteen research analysts have given the stock a hold rating, twenty-two have rated it as a buy, and one has even assigned it a strong buy rating. According to Bloomberg.com, these ratings collectively yield an average rating of “Moderate Buy” with a consensus price target of approximately $182.69.
In related news regarding Zscaler’s executive team, the Chief Operating Officer (COO), Dali Rajic, recently sold 22,000 shares of the company’s stock on Tuesday, August 1st at an average price of $157.41 per share. This transaction amounted to a total value of $3,463,020.
As a result of this sale, Rajic now possesses 284,406 shares in Zscaler directly – valued at around $44,768,348 – according to public filings disclosed with the Securities & Exchange Commission (SEC). It is noteworthy that COO Rajic made another sale totaling 22,000 shares on that same date.
Additionally, Chief Financial Officer (CFO) Remo Canessa sold 12,500 shares of Zscaler on Monday, August 21st at an average price of $144.03 per share. The total value of this transaction amounted to $1,800,375.
Following the sale, CFO Canessa now holds 272,565 shares directly in the company, valued at approximately $39,257,536.95. This sale was also disclosed in a document filed with the SEC.
In total, Zscaler insiders have sold 103,500 shares of the company’s stock within the last three months. These sales add up to a combined value of $15,464,985. It is worth noting that corporate insiders currently own approximately 19.80% of the stock.
As Zscaler continues to make progress and garners positive ratings from research firms, these recent insider transactions hint at potential changes within the company or actions taken by executives to diversify their investment portfolios.
It is important for investors to keep track of such developments and stay informed about any significant insider activity when making decisions regarding their investments. As always, conducting thorough research and seeking advice from financial experts is essential before making any investment decisions based on available information.
To access further details regarding these insider transactions and other disclosures made by Zscaler executives with the SEC, interested parties can visit the respective links provided on the SEC website.
Overall, Zscaler’s recent surge in positive evaluations from research firms and ongoing insider activities indicate an interesting evolving landscape for the cloud security provider. Investors will undoubtedly be keenly observing these developments as they navigate their own investment strategies moving forward.
