An investigation into Zscaler Inc. (NASDAQ:ZS)’s technical aspects

The price of Zscaler Inc. (NASDAQ: ZS) closed at $123.76 in the last session, up 5.67% from day before closing price of $117.12. In other words, the price has increased by $+6.64 from its previous closing price. On the day, 2921507 shares were traded. ZS stock price reached its highest trading level at $124.44 during the session, while it also had its lowest trading level at $117.40.

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Ratios:

We take a closer look at ZS’s different ratios to gain a better understanding of the stock. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 9.22 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 62.50. For the most recent quarter (mrq), Quick Ratio is recorded 2.00 and its Current Ratio is at 2.00. In the meantime, Its Debt-to-Equity ratio is 2.64 whereas as Long-Term Debt/Eq ratio is at 2.64.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, Scotiabank on January 18, 2023, initiated with a Sector Outperform rating and assigned the stock a target price of $115.

Morgan Stanley Downgraded its Overweight to Equal-Weight on January 12, 2023, whereas the target price for the stock was revised from $162 to $120.

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on Dec 23 when Brown Andrew William Fraser bought 5,000 shares for $108.78 per share. The transaction valued at 543,900 led to the insider holds 23,250 shares of the business.

Chaudhry Jagtar Singh sold 1,262 shares of ZS for $144,043 on Dec 16. The CEO & Chairman now owns 323,549 shares after completing the transaction at $114.14 per share. On Dec 16, another insider, Rajic Dali, who serves as the Chief Operating Officer of the company, sold 7,113 shares for $114.14 each. As a result, the insider received 811,866 and left with 296,820 shares of the company.

Valuation Measures:

For the stock, the TTM Price-to-Sale (P/S) ratio is 13.83 while its Price-to-Book (P/B) ratio in mrq is 41.12.

Stock Price History:

Over the past 52 weeks, ZS has reached a high of $290.47, while it has fallen to a 52-week low of $99.64. The 50-Day Moving Average of the stock is 120.77, while the 200-Day Moving Average is calculated to be 154.54.

Shares Statistics:

According to the various share statistics, ZS traded on average about 2.59M shares per day over the past 3-months and 3.08M shares per day over the past 10 days. A total of 143.48M shares are outstanding, with a floating share count of 86.47M. Insiders hold about 1.00% of the company’s shares, while institutions hold 49.60% stake in the company. Shares short for ZS as of Oct 13, 2022 were 6.27M with a Short Ratio of 8.04M, compared to 7.01M on Sep 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 4.39% and a Short% of Float of 7.34%.

Earnings Estimates

The company has 33 analysts who recommend its stock at the moment. On average, analysts expect EPS of $0.26 for the current quarter, with a high estimate of $0.32 and a low estimate of $0.25, while EPS last year was $0.14. The consensus estimate for the next quarter is $0.26, with high estimates of $0.38 and low estimates of $0.2.

Analysts are recommending an EPS of between $1.55 and $1.09 for the fiscal current year, implying an average EPS of $1.18. EPS for the following year is $1.61, with 36 analysts recommending between $2.25 and $1.16.

Revenue Estimates

A total of 38 analysts have provided revenue estimates for ZS’s current fiscal year. The highest revenue estimate was $1.98B, while the lowest revenue estimate was $1.49B, resulting in an average revenue estimate of $1.51B. In the same quarter a year ago, actual revenue was $1.09B, up 38.80% from the average estimate. Based on 37 analysts’ estimates, the company’s revenue will be $1.98B in the next fiscal year. The high estimate is $2.15B and the low estimate is $1.88B. The average revenue growth estimate for next year is up 30.50% from the average revenue estimate for this year.