Zscaler Inc (ZS) Shares Decline Despite Market Challenges

The stock price of Zscaler Inc (NASDAQ: ZS) has plunged by -1.76 when compared to previous closing price of 192.13, but the company has seen a -2.75% decline in its stock price over the last five trading sessions. InvestorPlace reported 2024-04-01 that Cybersecurity continues to be one of the hottest sectors. It represents an increasing need in the emerging age of AI that grows at a nearly exponential rate.

Is It Worth Investing in Zscaler Inc (NASDAQ: ZS) Right Now?

Company’s 36-month beta value is 0.82.Analysts have differing opinions on the stock, with 2 analysts rating it as a “buy,” 3 as “overweight,” 7 as “hold,” and 0 as “sell.”

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The public float for ZS is 88.58M, and currently, short sellers hold a 5.15% ratio of that floaft. The average trading volume of ZS on April 03, 2024 was 2.41M shares.

ZS’s Market Performance

ZS’s stock has seen a -2.75% decrease for the week, with a -13.91% drop in the past month and a -14.81% fall in the past quarter. The volatility ratio for the week is 2.18%, and the volatility levels for the past 30 days are at 3.13% for Zscaler Inc The simple moving average for the last 20 days is -4.89% for ZS stock, with a simple moving average of 2.78% for the last 200 days.

Analysts’ Opinion of ZS

Many brokerage firms have already submitted their reports for ZS stocks, with Bernstein repeating the rating for ZS by listing it as a “Outperform.” The predicted price for ZS in the upcoming period, according to Bernstein is $311 based on the research report published on January 18, 2024 of the current year 2024.

Oppenheimer gave a rating of “Outperform” to ZS, setting the target price at $290 in the report published on January 03rd of the current year.

ZS Trading at -15.61% from the 50-Day Moving Average

After a stumble in the market that brought ZS to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -27.30% of loss for the given period.

Volatility was left at 3.13%, however, over the last 30 days, the volatility rate increased by 2.18%, as shares sank -11.89% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -18.40% lower at present.

During the last 5 trading sessions, ZS fell by -2.75%, which changed the moving average for the period of 200-days by +19.80% in comparison to the 20-day moving average, which settled at $197.16. In addition, Zscaler Inc saw -14.81% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at ZS starting from Schlossman Robert, who sale 5,484 shares at the price of $193.88 back on Mar 19 ’24. After this action, Schlossman Robert now owns 118,494 shares of Zscaler Inc, valued at $1,063,224 using the latest closing price.

CANESSA REMO, the Chief Financial Officer of Zscaler Inc, sale 7,707 shares at $193.15 during a trade that took place back on Mar 18 ’24, which means that CANESSA REMO is holding 255,943 shares at $1,488,579 based on the most recent closing price.

Stock Fundamentals for ZS

Current profitability levels for the company are sitting at:

  • -0.1 for the present operating margin
  • 0.77 for the gross margin

The net margin for Zscaler Inc stands at -0.07. The total capital return value is set at -0.08. Equity return is now at value -18.64, with -3.98 for asset returns.

Based on Zscaler Inc (ZS), the company’s capital structure generated 0.55 points at debt to capital in total, while cash flow to debt ratio is standing at 0.55. The debt to equity ratio resting at 1.24. The interest coverage ratio of the stock is -17.22.

Currently, EBITDA for the company is -101.61 million with net debt to EBITDA at 4.07. When we switch over and look at the enterprise to sales, we see a ratio of 14.81. The receivables turnover for the company is 3.87for trailing twelve months and the total asset turnover is 0.48. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.90.

Conclusion

In a nutshell, Zscaler Inc (ZS) has experienced a bad performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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