The stock price of Zscaler Inc (NASDAQ: ZS) has jumped by 0.20 compared to previous close of 187.26. Despite this, the company has seen a gain of 1.04% in its stock price over the last five trading days. zacks.com reported 2024-12-24 that ZS’ 16% YTD dip offers a buying opportunity with strong fundamentals, market leadership and promising growth in 2025.
Is It Worth Investing in Zscaler Inc (NASDAQ: ZS) Right Now?
The 36-month beta value for ZS is also noteworthy at 0.84. There are mixed opinions on the stock, with 21 analysts rating it as a “buy,” 9 rating it as “overweight,” 16 rating it as “hold,” and 0 rating it as “sell.”
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The public float for ZS is 95.02M, and at present, short sellers hold a 5.06% of that float. The average trading volume of ZS on December 27, 2024 was 1.81M shares.
ZS’s Market Performance
The stock of Zscaler Inc (ZS) has seen a 1.04% increase in the past week, with a -10.83% drop in the past month, and a 9.77% gain in the past quarter. The volatility ratio for the week is 2.97%, and the volatility levels for the past 30 days are at 3.68% for ZS. The simple moving average for the past 20 days is -5.83% for ZS’s stock, with a 1.17% simple moving average for the past 200 days.
Analysts’ Opinion of ZS
Many brokerage firms have already submitted their reports for ZS stocks, with BMO Capital Markets repeating the rating for ZS by listing it as a “Outperform.” The predicted price for ZS in the upcoming period, according to BMO Capital Markets is $222 based on the research report published on December 03, 2024 of the current year 2024.
Exane BNP Paribas, on the other hand, stated in their research note that they expect to see ZS reach a price target of $180. The rating they have provided for ZS stocks is “Neutral” according to the report published on October 08th, 2024.
BMO Capital Markets gave a rating of “Outperform” to ZS, setting the target price at $197 in the report published on September 04th of the current year.
ZS Trading at -4.65% 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 -27.73% of loss for the given period.
Volatility was left at 3.68%, however, over the last 30 days, the volatility rate increased by 2.97%, as shares sank -10.78% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -3.86% lower at present.
During the last 5 trading sessions, ZS rose by +1.04%, which changed the moving average for the period of 200-days by -6.76% in comparison to the 20-day moving average, which settled at $199.25. In addition, Zscaler Inc saw -15.31% 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 Chaudhry Jagtar Singh, who sale 2,863 shares at the price of $200.32 back on Dec 17 ’24. After this action, Chaudhry Jagtar Singh now owns 358,569 shares of Zscaler Inc, valued at $573,514 using the latest closing price.
Nair Syam, the CTO of Zscaler Inc, sale 3,682 shares at $200.32 during a trade that took place back on Dec 17 ’24, which means that Nair Syam is holding 142,866 shares at $737,576 based on the most recent closing price.
Stock Fundamentals for ZS
Current profitability levels for the company are sitting at:
- -0.05 for the present operating margin
- 0.78 for the gross margin
The net margin for Zscaler Inc stands at -0.02. The total capital return value is set at -0.06. Equity return is now at value -3.24, with -0.87 for asset returns.
Based on Zscaler Inc (ZS), the company’s capital structure generated 0.46 points at debt to capital in total, while cash flow to debt ratio is standing at 0.69. The debt to equity ratio resting at 0.87. The interest coverage ratio of the stock is -8.18.
Currently, EBITDA for the company is 64.79 million with net debt to EBITDA at -3.38. When we switch over and look at the enterprise to sales, we see a ratio of 12.39. The receivables turnover for the company is 5.41for trailing twelve months and the total asset turnover is 0.49. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.09.
Conclusion
In summary, Zscaler Inc (ZS) has had a mixed performance as of late. Analysts have bullish opinions on the stock, with some viewing it as a “buy” and others as a “hold”. 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.
