Zscaler Inc. (NASDAQ:ZS) Relative Strength Index (RSI) is 54.98, with weekly volatility at 2.54% and ATR at 7.59. The ZS stock’s 52-week price range has touched low of $96.59 and a $230.88 high. Intraday shares traded counted 1.79 million, which was 11.16% higher than its 30-day average trading volume of 2.02M. Its shares traded higher over the last trading session, gaining 0.84% on 06/04/21. The shares fell to a low of $184.77 before closing at $185.80. ZS’s previous close was $184.25 while the outstanding shares total 136.38M.
Investors have identified the Software – Infrastructure company Zscaler Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $25.05 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Zscaler Inc. (ZS) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 1.71 billion total, with 564.88 million as their total liabilities.
ZS were able to record 116.04 million as free cash flow during the 09/15/2021 quarter of the year, this saw their quarterly net cash flow reduce by -35.26 million. In cash movements, the company had a total of 157.3 million as operating cash flow.
Potential earnings growth for Zscaler Inc. (ZS)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 09/15/2021 quarter of the year, Zscaler Inc. recorded a total of 176.4 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 37.35% coming in sequential stages and their sales for the 09/15/2021 quarter increasing by 10.97%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 38.98 million trying to sell their products during the last quarter, with the result yielding a gross income of 137.43 million. This allows shareholders to hold on to 136.38M with the recently reported earning now reading -0.43 cents per share. This is a figure that compared to analyst’s prediction for their 09/15/2021 (-0.30 cents a share).
Having a look at the company’s valuation, the company is expected to record -1.81 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on ZS sounds very interesting.
Is the stock of ZS attractive?
In related news, Chief Financial Officer, CANESSA REMO sold 10,000 shares of the company’s stock in a transaction that recorded on Jun 02. The sale was performed at an average price of 191.29, for a total value of 1,912,920. As the sale deal closes, the President of R&D and CTO, Sinha Amit now sold 7,000 shares of the company’s stock, valued at 1,352,906. Also, Director, BLASING KAREN sold 1,000 shares of the company’s stock in a deal that was recorded on May 26. The shares were price at an average price of 195.00 per share, with a total market value of 195,000. Following this completion of acquisition, the Director, BLASING KAREN now holds 1,500 shares of the company’s stock, valued at 262,023. In the last 6 months, insiders have changed their ownership in shares of company stock by 2.70%.
19 out of 28 analysts covering the stock have rated it a Buy, while 8 have maintained a Hold recommendation on Zscaler Inc.. 0 analysts has assigned a Sell rating on the ZS stock. The 12-month mean consensus price target for the company’s shares has been set at $232.56.