SAN JOSE, CA – Zscaler, Inc. (NASDAQ:ZS), a leader in cloud-based security solutions, has reported a series of stock sales by its Chief Financial Officer, Remo Canessa. According to the recent filings, Canessa sold a significant portion of company stock totaling over $2.8 million.
The transactions, which took place between June 18 and June 21, 2024, involved the sale of Zscaler common stock at varying prices. On June 18, Canessa sold 4,689 shares at a price of $180.93 per share. Subsequent sales on June 20 included 3,905 shares at $176.97, 1,100 shares at $176.1327, 1,635 shares at $177.1101, 700 shares at $178.30, and 641 shares at $179.6229. The sales continued on June 21 with 2,128 shares at $177.2469, 851 shares at $177.813, and 259 shares at a price of $179 per share.
The total proceeds from the sales where the price was reported as a single value amounted to $1,539,448, with prices ranging from $176.97 to $180.93. The remaining transactions, which involved multiple sales at various prices, resulted in proceeds of $1,298,130, with a price range of $176.1327 to $179.6229. These sales were executed in accordance with a Rule 10b5-1 trading plan, which Canessa had adopted on January 4, 2024.
Footnotes attached to the filing indicated that some of the shares sold by Canessa were to cover tax withholding obligations associated with the vesting of restricted stock units as mandated by the issuer's election under its equity incentive plans. These transactions were not discretionary trades by the reporting person.
After the reported transactions, Canessa still retains a substantial stake in Zscaler, with ownership of 240,248 shares of common stock. The company has not made any additional statements regarding these transactions at this time.
In other recent news, Zscaler, the cloud security company, has been garnering attention with its impressive Q3 results, strategic collaborations, and favorable analyst ratings. The company reported a 30% year-over-year increase in billings and a record operating margin, marking its first instance of GAAP profitability. Furthermore, Zscaler noted a 31% year-over-year growth in customers with an annual recurring revenue of over $1 million.
Zscaler has also expanded its partnerships with Google (NASDAQ:GOOGL) and NVIDIA (NASDAQ:NVDA). The collaboration with Google aims to advance Zero Trust security measures, providing enhanced threat and data protection for enterprise users. In partnership with NVIDIA, Zscaler plans to integrate advanced AI technologies, bolstering its cybersecurity services.
Analyst firms have maintained positive outlooks on Zscaler. BofA Securities and Scotiabank (TSX:BNS) reiterated their Buy and Sector Outperform ratings respectively, while BMO (TSX:BMO) Capital Markets and Piper Sandler maintained their Outperform and Overweight ratings. These endorsements reflect the continued confidence in Zscaler's strategic direction and market position.
These recent developments demonstrate Zscaler's strategic efforts to meet evolving cybersecurity needs and enhance customer engagement. The company's focus on integrating its platform and prioritizing key areas such as Data Protection, AI Cloud, and Zero Trust Networking is part of its broader strategy. The transition to an account-centric selling model is aimed at building deeper relationships with clients.
InvestingPro Insights
As Zscaler's CFO Remo Canessa engages in notable stock transactions, investors and analysts are keeping a keen eye on the company's financial health and market performance. According to the latest data from InvestingPro, Zscaler boasts a robust revenue growth, with a 37.16% increase in the last twelve months as of Q3 2024. This figure aligns with the optimism from analysts who expect the company's sales to grow in the current year, as indicated by one of the InvestingPro Tips.
Another metric that stands out is Zscaler's gross profit margin, which reached an impressive 77.94% in the same period. This is a testament to the company's ability to maintain profitability in its core operations, despite not having been profitable over the last twelve months. However, analysts predict a turnaround, forecasting profitability for Zscaler this year.
InvestingPro data also reveals a market capitalization of $27.2 billion USD, reflecting the market's valuation of the company. While the P/E ratio stands at a negative -359.6, suggesting that investors are pricing in future growth expectations rather than current earnings. The high Price / Book multiple of 24.83 further underscores this sentiment, indicating that Zscaler's assets are being valued significantly in anticipation of future growth.
For investors looking for more in-depth analysis and additional metrics, there are 34 more InvestingPro Tips available, which can be accessed with a subscription. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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