Rosenblatt Securities Reiterates Buy Rating for Zscaler (NASDAQ:ZS)

Zscaler (NASDAQ:ZS)‘s stock had its “buy” rating reissued by stock analysts at Rosenblatt Securities in a note issued to investors on Tuesday,Benzinga reports. They currently have a $280.00 price target on the stock. Rosenblatt Securities’ price target indicates a potential upside of 79.83% from the stock’s previous close.

Several other research analysts have also issued reports on the stock. Morgan Stanley set a $305.00 target price on shares of Zscaler in a research note on Thursday, December 18th. Scotiabank cut their price objective on shares of Zscaler from $334.00 to $320.00 and set a “sector outperform” rating on the stock in a research report on Wednesday, November 26th. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $250.00 target price on shares of Zscaler in a research report on Wednesday, February 11th. Macquarie Infrastructure began coverage on Zscaler in a report on Friday, October 31st. They issued an “outperform” rating and a $390.00 price target on the stock. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Zscaler in a research report on Wednesday, January 21st. One analyst has rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Zscaler presently has an average rating of “Moderate Buy” and an average target price of $293.84.

Zscaler Stock Up 4.2%

Zscaler stock opened at $155.70 on Tuesday. The firm has a market cap of $24.83 billion, a price-to-earnings ratio of -598.82, a PEG ratio of 304.47 and a beta of 1.02. Zscaler has a 52-week low of $141.56 and a 52-week high of $336.99. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.82 and a current ratio of 1.82. The firm has a 50 day moving average price of $201.91 and a two-hundred day moving average price of $256.68.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Tuesday, November 25th. The company reported $0.96 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.85 by $0.11. The firm had revenue of $788.11 million for the quarter, compared to analysts’ expectations of $773.86 million. Zscaler had a negative return on equity of 0.12% and a negative net margin of 1.45%.The company’s revenue for the quarter was up 25.5% compared to the same quarter last year. During the same period in the prior year, the business earned $0.77 EPS. Equities analysts predict that Zscaler will post -0.1 EPS for the current year.

Insiders Place Their Bets

In other news, insider Robert Schlossman sold 3,084 shares of the stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total transaction of $711,848.88. Following the transaction, the insider directly owned 77,002 shares in the company, valued at approximately $17,773,601.64. This represents a 3.85% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Kevin Rubin sold 3,303 shares of Zscaler stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total transaction of $762,398.46. Following the transaction, the chief financial officer directly owned 48,161 shares in the company, valued at $11,116,522.02. This trade represents a 6.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 19,350 shares of company stock worth $4,471,509. 17.20% of the stock is owned by corporate insiders.

Institutional Trading of Zscaler

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Binnacle Investments Inc bought a new position in Zscaler during the 3rd quarter valued at approximately $25,000. Tradewinds Capital Management LLC increased its stake in shares of Zscaler by 145.7% during the third quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock valued at $26,000 after buying an additional 51 shares during the period. Root Financial Partners LLC bought a new stake in Zscaler during the 3rd quarter valued at approximately $26,000. McIlrath & Eck LLC purchased a new position in shares of Zscaler during the 3rd quarter worth approximately $29,000. Finally, AlphaCentric Advisors LLC purchased a new position in shares of Zscaler during the 4th quarter worth approximately $29,000. 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.