Zscaler, Inc. (NASDAQ:ZS) shares went up 15.51% in Thursday’s session, putting the price tag at $42.98 plus $5.02B in market capitalization. Earlier in the session, the stock traded between $37.15 and $43.0589. Trading activity significantly improved as the volume at ready counter increased to 5,615,687 shares versus 1,561,240 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,406,852 shares. The stock is now 73.59% above against its bear-market low of $24.76 on May 25, 2018. It has retreated -12.24% since it’s 52-week high of $48.24 reached in August. Now the market price is down 0% on the year and up 30.24% YTD.
ZS’s 50 day simple moving average (SMA 50) price is $37.49. The company’s stock currently has a total float of 57.47M shares. Its weekly volatility is hovering around 8.11% and felt 6.49% volatility in price over a month. On the upside, the share price will test short term resistance at around $44.98. On a downside, the stock is likely to find some support, which begins at $39.07. The failure to get near-term support could push it to $35.15.
Separately, it has been reported that multiple insider activity took place at Zscaler, Inc. (ZS). CTO & EVP of Eng/Cloud Ops Sinha Amit sold 6,730 shares for $1,665,041 in transaction occurred on 2018/11/29. After making this transaction, the CTO & EVP of Eng/Cloud Ops owns a direct stake of 245,712 shares, worth $71,563,462, as per the last closing price. On 2018/11/25 Sinha Amit, CTO & EVP of Eng/Cloud Ops at ZS, dumped 2,884 shares at an average price of $33.9 per share. The selling total is valued at $71,852,718.
CTO & EVP of Eng/Cloud Ops, Sinha Amit had divested 4,807 shares for $1,674,655 through a trade on 2018/11/15. Following this activity, the insider holds 194,347 shares worth $71,976,672 as of recent close. Wall Street’s most bullish Zscaler, Inc. (NASDAQ:ZS) analysts are predicting the share price to blow past $55 per share during the next 12 months. The current median share price forecast by them is $45, suggesting that the stock could increase 4.7% in that time frame. The average price target of $43.65 calls for a nearly 1.56% increase in the stock price.
It had seen a new analyst call from Wedbush, which initiated the stock at Outperform on October 19. Analysts at Robert W. Baird, started covering the stock on October 18 with a Outperform rating. The stock lost favor of BTIG Research analysts who expressed their lack of confidence in it using a downgrade from Buy to Neutral on September 10.
Moreover, it trades for 1653.08 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 21.28x price/book and 26.4x price/sales. Compared to others, Zscaler, Inc. is in a different league with regards to profitability, having net margins of -21%. To put some perspective around this, the industry’s average net margin is 11.71%. ZS’s ROE is -103.2%, which is also considerably worse than the industry’s ROE of 15.39%. It’s also very liquid in the near term, with a current ratio of 2.1. The stock has a debt/capital of 0.
Revenue for the recent quarter stood at $56.17 million, down -280950% on last year and above the $50.7 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $50.06 million to $51.62 million, which should be compared with $0 generated last year.