Bank of America Downgrades Zscaler (NASDAQ:ZS) to Neutral

Bank of America downgraded shares of Zscaler (NASDAQ:ZS) from a buy rating to a neutral rating in a report issued on Wednesday morning, Marketbeat.com reports. They currently have $195.00 price objective on the stock, down from their previous price objective of $265.00.

ZS has been the topic of a number of other research reports. Citigroup decreased their price objective on Zscaler from $270.00 to $240.00 and set a buy rating on the stock in a research note on Wednesday, June 5th. Cantor Fitzgerald decreased their price target on Zscaler from $200.00 to $170.00 and set a neutral rating on the stock in a research note on Wednesday. Oppenheimer cut their price objective on shares of Zscaler from $260.00 to $230.00 and set an outperform rating on the stock in a report on Wednesday. JPMorgan Chase & Co. raised shares of Zscaler from a neutral rating to an overweight rating and boosted their price objective for the company from $205.00 to $230.00 in a research note on Friday, June 14th. Finally, BMO Capital Markets cut their target price on Zscaler from $208.00 to $197.00 and set an outperform rating on the stock in a research report on Wednesday. Nine equities research analysts have rated the stock with a hold rating, twenty-four have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of Moderate Buy and a consensus target price of $218.39.

Zscaler Stock Performance

NASDAQ:ZS opened at $156.78 on Wednesday. The company has a current ratio of 1.75, a quick ratio of 1.75 and a debt-to-equity ratio of 1.04. The company has a market capitalization of $23.70 billion, a P/E ratio of -307.41 and a beta of 0.82. The firm has a 50-day moving average price of $187.65 and a two-hundred day moving average price of $187.23. Zscaler has a twelve month low of $146.59 and a twelve month high of $259.61.

Zscaler (NASDAQ:ZS) last issued its quarterly earnings data on Tuesday, September 3rd. The company reported $0.88 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.70 by $0.18. The firm had revenue of $592.90 million during the quarter, compared to the consensus estimate of $567.46 million. Zscaler had a negative return on equity of 3.75% and a negative net margin of 2.66%. The company’s quarterly revenue was up 30.3% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.17) EPS. As a group, research analysts expect that Zscaler will post -0.38 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CFO Remo Canessa sold 7,981 shares of Zscaler stock in a transaction dated Thursday, June 20th. The shares were sold at an average price of $177.21, for a total value of $1,414,313.01. Following the completion of the transaction, the chief financial officer now directly owns 243,486 shares of the company’s stock, valued at approximately $43,148,154.06. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders own 19.20% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Quest Partners LLC acquired a new position in Zscaler during the 2nd quarter worth $28,000. Jones Financial Companies Lllp acquired a new position in shares of Zscaler during the fourth quarter valued at approximately $29,000. Quadrant Capital Group LLC increased its stake in shares of Zscaler by 66.7% during the fourth quarter. Quadrant Capital Group LLC now owns 175 shares of the company’s stock valued at $39,000 after acquiring an additional 70 shares during the period. Asset Dedication LLC raised its holdings in Zscaler by 436.8% during the second quarter. Asset Dedication LLC now owns 204 shares of the company’s stock worth $39,000 after purchasing an additional 166 shares in the last quarter. Finally, American Capital Advisory LLC acquired a new stake in Zscaler in the second quarter worth approximately $50,000. Institutional investors and hedge funds 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.