Zscaler (ZS) Downgraded to Sell at Zacks Investment Research

Zscaler (NASDAQ:ZS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Saturday.

According to Zacks, “Zscaler Inc. operates as a cloud security company. It focuses on transforming networks and applications for a mobile and cloud-first. The company’s flagship services consist of Zscaler Internet Access and Zscaler Private Access engages on securing connections between users and applications, regardless of device, location or network. Zscaler Inc. is headquartered in San Jose, California. “

ZS has been the topic of several other research reports. Needham & Company LLC increased their target price on Zscaler from $45.00 to $47.50 and gave the company a “strong-buy” rating in a report on Thursday, September 6th. Credit Suisse Group increased their target price on Zscaler from $38.00 to $46.00 and gave the company an “outperform” rating in a report on Thursday, September 6th. BTIG Research lowered Zscaler from a “buy” rating to a “neutral” rating and set a $33.00 target price on the stock. in a report on Monday, September 10th. They noted that the move was a valuation call. Finally, Morgan Stanley increased their target price on Zscaler from $31.00 to $41.00 and gave the company an “equal weight” rating in a report on Thursday, September 6th. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company. Zscaler currently has a consensus rating of “Hold” and an average target price of $36.71.

Shares of NASDAQ ZS traded up $1.75 during mid-day trading on Friday, hitting $36.30. The company had a trading volume of 1,436,263 shares, compared to its average volume of 1,411,590. The stock has a market cap of $4.88 billion and a P/E ratio of -117.10. Zscaler has a 1-year low of $24.76 and a 1-year high of $48.24.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings data on Wednesday, September 5th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.05) by $0.04. The company had revenue of $56.20 million during the quarter, compared to analyst estimates of $50.72 million. The firm’s revenue was up 53.8% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.07) earnings per share. As a group, sell-side analysts expect that Zscaler will post -0.27 earnings per share for the current fiscal year.

In other Zscaler news, Director Andrew William Fraser Brown sold 35,000 shares of the firm’s stock in a transaction dated Thursday, September 13th. The stock was sold at an average price of $40.61, for a total transaction of $1,421,350.00. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Amit Sinha sold 4,807 shares of the firm’s stock in a transaction dated Thursday, September 13th. The stock was sold at an average price of $42.12, for a total value of $202,470.84. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 201,772 shares of company stock worth $8,361,261.

Several hedge funds have recently modified their holdings of the business. BlackRock Inc. purchased a new position in shares of Zscaler during the first quarter worth about $114,000. Atlantic Trust Group LLC purchased a new position in shares of Zscaler during the first quarter worth about $136,000. Optimum Investment Advisors grew its holdings in shares of Zscaler by 240.0% during the third quarter. Optimum Investment Advisors now owns 3,400 shares of the company’s stock worth $139,000 after buying an additional 2,400 shares during the last quarter. Point72 Asia Hong Kong Ltd purchased a new position in shares of Zscaler during the first quarter worth about $209,000. Finally, Stevens Capital Management LP purchased a new position in shares of Zscaler during the second quarter worth about $211,000. 23.02% of the stock is currently owned by institutional investors.

Zscaler Company Profile

Zscaler, Inc operates as a cloud security company worldwide. The company's flagship services include Zscaler Internet Access solution that connect users to externally managed applications, including software-as-a-service applications and Internet destinations; and Zscaler Private Access solution, which is designed to provide access to internally managed applications, either hosted internally in data centers, and private or public clouds.

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