Zscaler Inc. (NASDAQ: ZS) stock fell -0.88% on Monday to $154.72 against a previous-day closing price of $156.10. With 1.45 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.18 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $156.06 whereas the lowest price it dropped to was $153.01. The 52-week range on ZS shows that it touched its highest point at $185.99 and its lowest point at $84.93 during that stretch. It currently has a 1-year price target of $183.97. Beta for the stock currently stands at 0.85.
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 down-trending over the past week, with a drop of -6.26%, but this was up by 14.06% over a month. Three-month performance surged to 0.46% while six-month performance rose 46.67%. The stock lost -12.09% in the past year, while it has gained 38.27% so far this year. A look at the trailing 12-month EPS for ZS yields -1.40 with Next year EPS estimates of 2.82. For the next quarter, that number is 0.49. This implies an EPS growth rate of -43.40% for this year and 25.83% for next year. EPS is expected to grow by 47.82% 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, 145.35 million ZS shares are outstanding with a float of 87.83 million shares on hand for trading. On Aug 30, 2023, short shares totaled 5.76 million, which was 3.95% higher than short shares on Jul 30, 2023. In addition to QS as the firm’s QuantumScape Corporation, GS serves as its Goldman Sachs Group, Inc. (The).
Through their ownership of 49.35% of ZS’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 42.35% of ZS, in contrast to 26.21% held by mutual funds. Shares owned by individuals account for 20.60%. As the largest shareholder in ZS with 5.70% of the stake, The Vanguard Group, Inc. holds 8,312,436 shares worth 8,312,436. A second-largest stockholder of ZS, BlackRock Fund Advisors, holds 4,050,250 shares, controlling over 2.78% of the firm’s shares. Voya Investment Management Co. LL is the third largest shareholder in ZS, holding 2,966,875 shares or 2.03% stake. With a 1.87% stake in ZS, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 2,726,981 shares are owned by the mutual fund manager. The Invesco QQQ Trust, which owns about 1.68% of ZS stock, is the second-largest Mutual Fund holder. It holds 2,444,534 shares valued at 381.47 million. Vanguard Mid Cap Index Fund holds 1.38% of the stake in ZS, owning 2,017,740 shares worth 314.87 million.
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 $135.00, the average target price over the next 12 months is $182.49. Based on these targets, ZS could surge 45.42% to reach the target high and fall by -12.75% to reach the target low. Reaching the average price target will result in a growth of 17.95% 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 0 Buys and 20 Sells. In these transactions, 0 shares were bought while 82,822 shares were sold. The number of buy transactions has increased to 17 while that of sell transactions has risen to 38 over the past year. The total number of shares bought during that period was 257,428 while 247,804 shares were sold.