Zscaler’s (ZS) “Outperform” Rating Reaffirmed at Royal Bank of Canada

Royal Bank of Canada reaffirmed their outperform rating on shares of Zscaler (NASDAQ:ZS) in a research note released on Wednesday morning, Benzinga reports. The firm currently has a $230.00 target price on the stock.

Other equities analysts have also recently issued reports about the company. JMP Securities reiterated a market outperform rating and issued a $270.00 target price on shares of Zscaler in a report on Monday, June 17th. Sanford C. Bernstein cut their target price on Zscaler from $280.00 to $270.00 and set an outperform rating on the stock in a report on Friday, May 31st. UBS Group cut their target price on Zscaler from $300.00 to $270.00 and set a buy rating on the stock in a report on Wednesday, May 29th. Robert W. Baird cut their target price on Zscaler from $260.00 to $225.00 and set an outperform rating on the stock in a report on Wednesday. Finally, Wells Fargo & Company reissued an equal weight rating and issued a $182.00 price target (down from $275.00) on shares of Zscaler in a research report on Tuesday, May 28th. Nine investment analysts have rated the stock with a hold rating, twenty-four have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of Moderate Buy and an average price target of $218.39.

Zscaler Price Performance

Zscaler stock opened at $156.78 on Wednesday. The stock has a market capitalization of $23.70 billion, a price-to-earnings ratio of -307.41 and a beta of 0.82. Zscaler has a 52-week low of $146.59 and a 52-week high of $259.61. The stock’s 50 day moving average price is $187.65 and its two-hundred day moving average price is $187.65. The company has a debt-to-equity ratio of 1.04, a quick ratio of 1.75 and a current ratio of 1.75.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Tuesday, September 3rd. The company reported $0.88 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.70 by $0.18. Zscaler had a negative return on equity of 3.75% and a negative net margin of 2.66%. The firm had revenue of $592.90 million for the quarter, compared to analysts’ expectations of $567.46 million. During the same period in the prior year, the business earned ($0.17) EPS. The company’s revenue for the quarter was up 30.3% compared to the same quarter last year. On average, equities analysts predict that Zscaler will post -0.38 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Remo Canessa sold 4,689 shares of Zscaler stock in a transaction dated Tuesday, June 18th. The stock was sold at an average price of $180.93, for a total value of $848,380.77. Following the completion of the sale, the chief financial officer now owns 251,467 shares of the company’s stock, valued at approximately $45,497,924.31. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 19.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Zscaler

Several large investors have recently added to or reduced their stakes in ZS. 1832 Asset Management L.P. purchased a new stake in Zscaler in the 4th quarter worth about $217,683,000. Norges Bank bought a new position in Zscaler in the 4th quarter worth about $117,599,000. Trivest Advisors Ltd bought a new position in Zscaler in the 4th quarter worth about $72,051,000. Quadrature Capital Ltd bought a new position in Zscaler in the 1st quarter worth about $47,217,000. Finally, Vanguard Group Inc. boosted its stake in Zscaler by 2.4% in the 4th quarter. Vanguard Group Inc. now owns 8,843,772 shares of the company’s stock worth $1,959,426,000 after purchasing an additional 206,908 shares during the period. Hedge funds and other institutional investors own 46.45% of the company’s stock.

About Zscaler

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.