Following The Money: Institution’s Growing Stake In Zscaler Inc. (NASDAQ: ZS)


    The Vanguard Group, Inc. has recently announced that it has increased stake in Zscaler Inc. (NASDAQ:ZS) by 8.12%. After grabbing 6.58 million shares, the institutional investor is now in possession of 0.49 million shares of the Technology Company. The new investment brought the stake of investor firm to 5.04% having worth around $853.96 million. Moreover, BlackRock Fund Advisors increased its share by 0.23 million to have a control over 3.31 million shares. And D. E. Shaw & Co. LP raised its holdings to 1.86 million shares by acquiring 2.1 million shares or 1.61% of the stake.

    Zscaler Inc. (ZS) concluded trading on 08/20/20 at a closing price of $136.42, with 3.13 million shares of worth about $427.03 million changed hands on the day. Weekly performance of the stock remained positive as price took a surge of 11.76% during that period and on Thursday the price saw a gain of about 6.36%. Currently the company’s common shares owned by public are about 129.68M shares, out of which, 71.38M shares are available for trading.

    A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 25 analysts are covering the ZS stock and their offered price forecasts bring an average price target of $111.77. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $171.00 and could fall to a lowest price of $73.00. Analysts also issued an outlook of 2.20 for the Zscaler Inc. stock for next 12 months. The stock’s current price level is -27.93% below of average price target set by the analysts, while a dip to estimated low would result in loss of -86.88 for the stock. However, touching the estimated high of $171.00 would mean a gain of 20.22% for the stock.

    According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 316 times over the past 12 months. They bought 9,664,146 shares in 66 of the transactions. In 250 selling transactions, insiders dumped 9,617,290 shares.

    AllianzGI Artificial Intelligence, Vanguard Total Stock Market Index, and Vanguard Small Cap Index Fund are the top 3 mutual funds which are holding stakes in Zscaler Inc. AllianzGI Artificial Intelligence is currently holding 6.0 million shares of worth totaling $779.1 million. The company recently came buying 6.0 million shares which brought its stake up to 4.60% of the company’s outstanding shares. Vanguard Total Stock Market Index bought 0.18 million shares, after which its hold over company’s outstanding shares expand to 1.55%, leaving 2.03 million shares with the mutual fund that have a worth of about $263.43 million. Vanguard Small Cap Index Fund, after buying 1.78 million shares, have now control over 1.37% of the stake in the company. It holds 0.13 million shares of worth $231.3 million.

    Zscaler Inc. (NASDAQ: ZS) started trading at $129.00, above $0.74 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $136.42, or with a gain of 6.36%. Stock saw a price change of 11.76% in past 5 days and over the past one month there was a price change of 9.04%. Year-to-date (YTD), ZS shares are showing a performance of 193.38% which increased to 86.90% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $35.00 but also hit the highest price of $135.85 during that period. While comparing its average daily trading volume of 3.42 million shares, we see that about 3.13 million changed hands on the day. The stock is currently trading 8.13% above its 20-day simple moving average (SMA20), while that difference is up 14.99% for SMA50 and it goes to 83.69% higher than SMA200.

    The Vanguard Group, Inc. acquired 6.58 million shares of Zscaler Inc. having value of about $853.96 million. Data submitted at the U.S SEC by The Vanguard Group, Inc. revealed that the firm now holds 0.49 million shares in the company valued at close to $67365287.36, or have control over 8.12% stake in the company. Zscaler Inc. (NASDAQ: ZS) currently have 129.68M outstanding shares and institutions hold larger chunk of about 43.80% of that. Holding of mutual funds in the company is about 27.65% while other institutional holders and individual stake holders have control over 47.57% and 15.56% of the stake respectively.

    The stock has a current market capitalization of $17.69B. It has posted earnings per share of -$0.55 in the same period. It has Quick Ratio of 1.60 while making debt-to-equity ratio of 0.00. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for ZS, volatility over the week remained 3.83% while standing at 3.89% over the month.

    Analysts are in expectations that Zscaler Inc. (ZS) stock would likely to be making an EPS of $0.02 in the current quarter, while forecast for next quarter ESPS is $0.03 and it is $0.28 for next year. For the current quarter EPS, analysts have given the company a lowest target $0.02 which is $0.04 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $0.07 in the same quarter a year ago. Stock’s fiscal year EPS is expected to rise by 62.90% while it is estimated to increase by 35.89% in next year.

    Analysts at 25 brokerage firms have issued recommendations for the Zscaler Inc. (ZS)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.20. Out of those 25 Wall Street analysts, 12 recommended a “Buy” rating, while 11 were in favor recommending the stock as a “Hold” and 1 analyst recommended the stock as “Sell”.

    Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Deutsche Bank on August 20, 2020 offering a Buy rating for the stock and assigned a target price of $171 to it. Coverage by Citigroup stated Zscaler Inc. (ZS) stock as a Buy in their note to investors on July 09, 2020, suggesting a price target of $152 for the stock. On July 06, 2020, RBC Capital Mkts Initiated their recommendations, while on June 22, 2020, Needham Reiterated their ratings for the stock with a price target of $130. Stock get an Equal-weight rating from Morgan Stanley on June 18, 2020.


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