SAN JOSE, CA – Zscaler, Inc. (NASDAQ:ZS) disclosed in a recent filing that Chief Legal Officer Robert Schlossman sold a significant number of shares in the company. The transactions, which took place between June 18 and June 20, resulted in the sale of 5,858 shares of Zscaler common stock, totaling over $1.8 million.
According to the filing, on June 18, Schlossman sold 3,594 shares at an average price of $180.93 per share, netting approximately $650,000. Two days later, on June 20, a series of transactions were made involving the sale of 2,264 shares. The shares were sold at prices ranging from $176.19 to $179.1973, with the total value of these sales amounting to roughly $400,000.
In addition to these transactions, Schlossman sold another 3,594 shares on June 20 at prices ranging from $178.6355 to $179.1973, bringing in an additional $640,000. These sales were executed under a Rule 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid accusations of insider trading.
The filing also noted that some of the sales were made to cover tax withholding obligations related to the vesting of restricted stock units as mandated by the company's equity incentive plans. This is a common practice for executives to manage the tax implications of vesting equity.
After these transactions, Schlossman's direct holdings in Zscaler stand at 118,621 shares, according to the filing. The filing did not indicate any discretionary trades by Schlossman, highlighting that the sales were planned and not based on the executive's view of the company's future prospects.
Investors often monitor insider sales for clues about executives' confidence in their company's future performance. However, it's important to note that there can be many reasons for an insider to sell shares, and such transactions do not necessarily indicate a lack of confidence in the company.
Zscaler, headquartered in San Jose, California, specializes in cloud-based information security, offering a broad range of services to enterprises worldwide. The company has been a key player in the shift towards cloud computing and remote work solutions, which has accelerated in recent years.
For further details on the transactions, shareholders and potential investors can refer to the full Form 4 filing available on the Securities and Exchange Commission's website.
In other recent news, Zscaler, a cloud security company, has been the focus of several analyst firms, following its impressive Q3 results and strategic partnerships. The company reported a 30% year-over-year increase in billings and a record operating margin, marking its first instance of GAAP profitability. Zscaler also saw a 31% year-over-year growth in customers with an annual recurring revenue of over $1 million.
BofA Securities maintained a Buy rating on Zscaler, with a price target of $265.00. This followed the recent Zenith Live 2024 user conference where Zscaler showcased its new portfolio innovations and a shift to an account-centric selling model. Scotiabank (TSX:BNS) also reiterated a positive outlook on Zscaler, maintaining a price target of $210.00, while BMO (TSX:BMO) Capital Markets retained its Outperform rating on Zscaler with a steady price target of $208.00.
Additionally, Zscaler has expanded collaborations with Google (NASDAQ:GOOGL) and NVIDIA (NASDAQ:NVDA). The partnership with Google is aimed at enhancing Zero Trust security measures, while the collaboration with NVIDIA is focused on integrating advanced AI technologies. These partnerships are part of Zscaler's strategy to meet evolving cybersecurity needs.
Furthermore, Piper Sandler confirmed its Overweight rating on Zscaler with a steady price target of $255.00, underscoring the company's strategic growth. This follows Zscaler's annual Zenith Live user conference where it highlighted growing network transformation business and promising developments in data security. These are the latest in a series of recent developments for Zscaler.
InvestingPro Insights
Zscaler, Inc. (NASDAQ:ZS) has been making headlines not only for insider transactions but also for its financial performance and market expectations. The latest data from InvestingPro shows a company on the move with notable metrics that potential investors should consider.
With a market capitalization of $27.03 billion, Zscaler is a significant player in the cybersecurity space. The company's revenue has been growing robustly, with a 37.16% increase over the last twelve months as of Q3 2024. This growth is further exemplified by a quarterly revenue increase of 32.09% in Q3 2024, indicating a strong upward trend in the company's financials.
One of the most striking figures is Zscaler's gross profit margin, which stands at an impressive 77.94% for the same period. This margin underscores the company's ability to manage its cost of goods sold effectively and maintain profitability on its services.
InvestingPro Tips highlight that analysts are optimistic about Zscaler's future, expecting net income and sales growth in the current year. Moreover, 34 analysts have revised their earnings estimates upwards for the upcoming period, signaling potential positive momentum for the company's financial outcomes. Additionally, Zscaler operates with a moderate level of debt and has demonstrated strong returns over the last five years, although it is important to note that the company has not been profitable over the last twelve months and does not pay a dividend to shareholders.
For investors intrigued by Zscaler's growth prospects and financial health, there are additional InvestingPro Tips available that could provide deeper insights into the company's performance and valuation. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking more valuable information to inform their investment decisions.
While the insider selling by Chief Legal Officer Robert Schlossman may draw attention, the broader financial data and analyst optimism reflected in the InvestingPro Tips and metrics provide a comprehensive picture of Zscaler's market position and future potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.