Zscaler exec sells $842k in company stock By Investing.com

Zscaler, Inc. (NASDAQ:) Chief Legal Officer, Robert Schlossman, has sold a portion of his company stock, totaling approximately $842,000. The transactions occurred on September 30, 2024, with prices ranging from $169.9874 to $172.1135 per share.

The sale was executed through a series of transactions, each at varying prices within the stated range. Schlossman disposed of 3,820 shares at a weighted average price of $169.9874, 939 shares at an average of $170.7931, and a further 188 shares at a weighted average of $172.1135. These sales were made under a Rule 10b5-1 trading plan, which was adopted on September 28, 2024, as indicated by the footnotes in the SEC filing.

Following the sale, the filings show that Schlossman still holds a significant number of shares in Zscaler. The transactions have been publicly reported as required by SEC regulations, providing transparency into the trading activities of company insiders.

Investors often monitor insider sales as they may provide insights into an executive’s perspective on the company’s current valuation. However, it’s important to note that there can be various reasons for such sales, and they do not necessarily indicate a lack of confidence in the company’s future prospects.

Zscaler, a leader in cloud-based security services, has not made any official statement regarding the transactions at this time.

In other recent news, Zscaler, a cloud security company, reported impressive financial results for its fourth fiscal quarter of 2024, with revenues surpassing consensus estimates by over 4% and earnings per share reaching $0.88. Despite these positive results, Zscaler’s fiscal 2025 revenue and profit forecasts fell short of Wall Street predictions. In response, Baird and Wedbush both maintained their ‘outperform’ ratings on Zscaler, expressing confidence in the company’s future.

Zscaler also announced the appointment of Adam Geller as its new Chief Product Officer. Geller, with over 25 years of experience in cybersecurity, is expected to drive the company’s product innovation and growth, focusing on the development of an AI-driven security operations platform.

In a strategic move, Zscaler and CrowdStrike (NASDAQ:) announced new integrations aimed at enhancing cybersecurity operations through advanced threat detection, response, and risk management. This partnership introduces the Falcon Foundry for Zscaler app, designed to facilitate threat intelligence sharing, and the integration with CrowdStrike Falcon® Next-Gen SIEM.

Finally, Bernstein, a financial research firm, adjusted its price target for Zscaler shares to $238.00 but maintained an Outperform rating. Despite a challenging macroeconomic climate, Zscaler maintained a solid growth trajectory, showing a 30% year-over-year increase in revenue and a 27% surge in billings.

InvestingPro Insights

To provide additional context to Robert Schlossman’s stock sale, let’s examine some key financial metrics and insights from InvestingPro for Zscaler (NASDAQ:ZS).

According to InvestingPro data, Zscaler currently has a market capitalization of $25.45 billion. The company’s revenue for the last twelve months as of Q4 2024 stood at $2.17 billion, with an impressive revenue growth of 34.07% over the same period. This strong top-line performance is complemented by a robust gross profit margin of 78.08%, highlighting Zscaler’s efficiency in delivering its cloud security services.

An InvestingPro Tip notes that Zscaler “holds more cash than debt on its balance sheet,” which suggests a strong financial position. This could provide reassurance to investors in light of the insider sale, as it indicates the company has ample liquidity to fund its operations and growth initiatives.

Another relevant InvestingPro Tip states that “net income is expected to grow this year.” This positive outlook on profitability could potentially offset concerns about the current negative earnings per share of -$0.39 for the last twelve months.

It’s worth noting that Zscaler’s stock has experienced a 16.5% decline over the past month, according to InvestingPro data. This recent performance, combined with the insider sale, might prompt investors to closely monitor the company’s upcoming earnings report, scheduled for November 27, 2024.

For those seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Zscaler, providing a broader perspective on the company’s financial health and market position.

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