Zscaler (ZS) Downgraded to Sell at Zacks Investment Research

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Zscaler (NASDAQ:ZS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued 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. “

A number of other equities research analysts have also issued reports on ZS. Needham & Company LLC upped their price target on Zscaler to $45.00 and gave the company a “strong-buy” rating in a research report on Tuesday, July 17th. Credit Suisse Group upped their price target on Zscaler from $38.00 to $46.00 and gave the company an “outperform” rating in a research report on Thursday, September 6th. Morgan Stanley upped their price target on Zscaler from $31.00 to $41.00 and gave the company an “equal weight” rating in a research report on Thursday, September 6th. Finally, BTIG Research lowered Zscaler from a “buy” rating to a “neutral” rating and set a $33.00 price target for the company. in a research report on Monday, September 10th. They noted that the move was a valuation call. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating, two have assigned a buy rating and one has given a strong buy rating to the stock. The company has an average rating of “Hold” and an average target price of $36.71.

Shares of ZS stock traded up $1.75 during trading hours on Friday, reaching $36.30. The company had a trading volume of 1,436,263 shares, compared to its average volume of 1,411,590. The firm has a market capitalization of $4.88 billion and a PE ratio of -117.10. Zscaler has a 12-month low of $24.76 and a 12-month high of $48.24.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Wednesday, September 5th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.05) by $0.04. The company had revenue of $56.20 million during the quarter, compared to analysts’ expectations of $50.72 million. Zscaler’s revenue for the quarter was up 53.8% on a year-over-year basis. During the same quarter last year, the company earned ($0.07) earnings per share. Equities research analysts forecast that Zscaler will post -0.27 earnings per share for the current fiscal year.

In related news, EVP Amit Sinha sold 4,807 shares of the stock in a transaction that occurred on Thursday, September 13th. The stock was sold at an average price of $42.12, for a total value of $202,470.84. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Andrew William Fraser Brown sold 35,000 shares of the stock in a transaction that occurred on Thursday, September 13th. The stock was sold at an average price of $40.61, for a total value of $1,421,350.00. The disclosure for this sale can be found here. Insiders sold 201,772 shares of company stock valued at $8,361,261 over the last quarter.

A number of large investors have recently added to or reduced their stakes in the business. FMR LLC lifted its stake in Zscaler by 305.1% during the second quarter. FMR LLC now owns 5,260,146 shares of the company’s stock worth $188,050,000 after purchasing an additional 3,961,759 shares in the last quarter. BlackRock Inc. lifted its stake in Zscaler by 23,211.1% during the second quarter. BlackRock Inc. now owns 948,061 shares of the company’s stock worth $33,893,000 after purchasing an additional 943,994 shares in the last quarter. Lord Abbett & CO. LLC acquired a new position in Zscaler during the first quarter worth $22,551,000. Alkeon Capital Management LLC acquired a new position in Zscaler during the first quarter worth $17,965,000. Finally, JPMorgan Chase & Co. acquired a new position in Zscaler during the first quarter worth $17,493,000. Institutional investors own 23.02% of the company’s stock.

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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