As of Wednesday, Zscaler Inc.’s (NASDAQ:ZS) stock closed at $131.52, up from $124.16 the previous day. While Zscaler Inc. has overperformed by 5.93%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, ZS fell by -48.85%, with highs and lows ranging from $290.47 to $99.64, whereas the simple moving average fell by -12.79% in the last 200 days.
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On January 24, 2023, JP Morgan started tracking Zscaler Inc. (NASDAQ: ZS) recommending Neutral. A report published by Scotiabank on January 18, 2023, Initiated its previous ‘Sector Outperform’ rating for ZS. Morgan Stanley January 12, 2023d the rating to Equal-Weight on January 12, 2023, and set its price target from $162 to $120. Redburn initiated its ‘Neutral’ rating for ZS, as published in its report on December 01, 2022. Macquarie’s report from November 02, 2022 suggests a price prediction of $155 for ZS shares, giving the stock a ‘Neutral’ rating. Cantor Fitzgerald also rated the stock as ‘Neutral’.
Analysis of Zscaler Inc. (ZS)
Further, the quarter-over-quarter increase in sales is 54.20%, showing a positive trend in the upcoming months.
One of the most important indicators of Zscaler Inc.’s future performance is equity, which can be evaluated using several well-rounded types of analysis and research techniques. The goal here is to ensure that your current return on equity of -70.90% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 2.00, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
For any stock, average volume can also provide valuable insight into volatility, and ZS is recording 2.68M average volume. On a monthly basis, the volatility of the stock is set at 5.18%, whereas on a weekly basis, it is put at 4.18%, with a gain of 9.68% over the past seven days. Furthermore, long-term investors anticipate a median target price of $170.29, showing growth from the present price of $131.52, which can serve as yet another indication of whether ZS is worth investing in or should be passed over.
How Do You Analyze Zscaler Inc. Shares?
Along with the fundamentals, it is also important to consider how many employees own shares of the company. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 1.00%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 49.60% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
Are institutional investors increasing their holdings in ZS shares?
The recent increase in stakes in ZS appears to be a result of several institutional investors and hedge funds increasing their positions. The Vanguard Group, Inc.’s position in ZS has increased by 2.07% in the first quarter. The company now owns 7,759,766 shares of the stock, with a value of $868.32 million, following the purchase of 157,053 additional shares during the last quarter. BlackRock Fund Advisors made another increased to its shares in ZS during the first quarter, upping its stake by 3.64%. During the last quarter, the company dropped down 126,642 additional shares for a total stake of worth $403.32 million, bringing number of shares owned by the company to 3,604,290.
During the first quarter, Capital Research & Management Co subtracted a -1,054,900 position in ZS. Voya Investment Management Co. LL purchased an additional 2.68 million shares in the last quarter, increasing its holdings by 1,017.52%, now holding 2.95 million shares worth $329.56 million. At the end of the first quarter, Artisan Partners LP increased its ZS holdings by 17.03% and now holds 1.87 million ZS shares valued at $208.71 million with the added 0.27 million shares during the period. ZS shares are owned by institutional investors to the tune of 49.60% at present.
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