Zscaler Inc. (NASDAQ: ZS) stock jumped 0.13% on Thursday to $126.69 against a previous-day closing price of $126.53. With 1.9 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.16 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $128.56 whereas the lowest price it dropped to was $125.25. The 52-week range on ZS shows that it touched its highest point at $194.21 and its lowest point at $84.93 during that stretch. It currently has a 1-year price target of $157.06. Beta for the stock currently stands at 0.81.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ZS was up-trending over the past week, with a rise of 2.20%, but this was up by 36.12% over a month. Three-month performance dropped to -3.20% while six-month performance fell -7.36%. The stock lost -0.88% in the past year, while it has gained 13.22% so far this year. A look at the trailing 12-month EPS for ZS yields -2.28 with Next year EPS estimates of 1.99. For the next quarter, that number is 0.47. This implies an EPS growth rate of -43.40% for this year and 28.50% for next year. EPS is expected to grow by 61.04% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -48.50%.
Float and Shares Shorts:
At present, 144.51 million ZS shares are outstanding with a float of 86.47 million shares on hand for trading. On May 14, 2023, short shares totaled 8.01 million, which was 5.52% higher than short shares on Apr 13, 2023. In addition to Mr. Jagtar Singh Chaudhry as the firm’s Co-Founder, CEO & Chairman, Mr. Remo E. Canessa serves as its Chief Financial Officer.
Through their ownership of 49.35% of ZS’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 42.67% of ZS, in contrast to 26.57% held by mutual funds. Shares owned by individuals account for 19.53%. As the largest shareholder in ZS with 5.58% of the stake, The Vanguard Group, Inc. holds 8,102,227 shares worth 8,102,227. A second-largest stockholder of ZS, Artisan Partners LP, holds 4,162,027 shares, controlling over 2.87% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in ZS, holding 3,868,459 shares or 2.67% stake. With a 1.86% stake in ZS, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 2,693,342 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 1.39% of ZS stock, is the second-largest Mutual Fund holder. It holds 2,020,067 shares valued at 182.01 million. Invesco QQQ Trust holds 1.32% of the stake in ZS, owning 1,912,039 shares worth 172.27 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jan 30, 2023, ZS reported revenue of $286.81M and operating income of -$86.60M. The EBITDA in the recently reported quarter was -$74.98M and diluted EPS was -$0.72.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ZS since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With ZS analysts setting a high price target of $225.00 and a low target of $120.00, the average target price over the next 12 months is $150.87. Based on these targets, ZS could surge 77.6% to reach the target high and fall by -5.28% to reach the target low. Reaching the average price target will result in a growth of 19.09% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded ZS stock several times over the past three months with 4 Buys and 4 Sells. In these transactions, 134,776 shares were bought while 16,412 shares were sold. The number of buy transactions has increased to 21 while that of sell transactions has risen to 21 over the past year. The total number of shares bought during that period was 653,067 while 333,417 shares were sold.