Zscaler, Inc. (NASDAQ:ZS) Chief Legal Officer Robert Schlossman has sold a portion of his company stock, according to the latest regulatory filings. The transactions, which occurred on October 9, 2024, involved the sale of Zscaler common stock at prices ranging from $180 to $185 per share. The total value of the stock sold amounted to $260,740.
The filings indicate that Schlossman sold 947 shares of Zscaler stock at $180 each, followed by a sale of 488 shares at $185 per share. The sales were executed under a Rule 10b5-1 trading plan, which was adopted on June 29, 2024. Rule 10b5-1 trading plans allow insiders to sell stocks at predetermined times to avoid accusations of insider trading.
Following the sale, Schlossman still holds a significant number of shares in the company. The filings show that after the transactions, he maintains ownership of 105,806 shares of Zscaler common stock. Additionally, it was noted that 66 shares are held directly by Schlossman's spouse.
The sale of shares by a company executive is often closely monitored by investors, as it can provide insights into the insider's view of the company's current valuation and future prospects. However, sales under a Rule 10b5-1 plan are typically planned in advance and may not necessarily reflect the insider's discretionary trading decisions.
Zscaler, headquartered in San Jose, California, specializes in cloud-based information security services. The company has been at the forefront of providing internet security solutions that align with the shift towards cloud computing and remote workforces.
Investors and market watchers often review filings from company insiders to gauge the sentiment within the company's leadership regarding the stock's performance and outlook. As of the last filing, Zscaler's stock continues to be an active subject of interest in the technology sector's investment community.
In other recent news, Zscaler, a leader in cloud security, has been making notable progress. The company's Q4 2024 financial results surpassed consensus estimates by over 4%, with earnings per share reaching $0.88. However, Zscaler's fiscal 2025 revenue and profit projections fell short of Wall Street expectations. On the personnel front, Zscaler has welcomed Adam Geller as its new Chief Product Officer, a move expected to boost product innovation and growth.
In terms of analyst outlook, TD Cowen, Baird, and Wedbush have all reiterated their confidence in Zscaler, maintaining their respective ratings. TD Cowen's price target remains stable at $270, while Baird maintains a target of $225. Bernstein, however, adjusted its price target for Zscaler shares to $238, but still maintains an Outperform rating.
Zscaler has also announced strategic collaborations, including new integrations with CrowdStrike (NASDAQ:CRWD) aimed at enhancing cybersecurity operations through advanced threat detection, response, and risk management. These recent developments reflect Zscaler's continued commitment to growth and innovation in the cybersecurity sector.
InvestingPro Insights
To provide additional context to Robert Schlossman's stock sale, let's examine some key financial metrics and insights from InvestingPro for Zscaler (NASDAQ:ZS).
As of the latest data, Zscaler boasts a market capitalization of $29.81 billion, reflecting its significant presence in the cloud security market. The company's revenue for the last twelve months as of Q4 2024 stood at $2.17 billion, with an impressive revenue growth of 34.07% over the same period. This strong top-line performance aligns with Zscaler's position as a leader in the rapidly expanding cloud security sector.
One of the InvestingPro Tips highlights that Zscaler "holds more cash than debt on its balance sheet," which suggests a solid financial position. This could provide reassurance to investors concerned about the insider stock sale, as it indicates the company has financial flexibility to pursue growth opportunities or weather potential market challenges.
Another notable InvestingPro Tip states that Zscaler has "impressive gross profit margins." Indeed, the data shows a gross profit margin of 78.08% for the last twelve months as of Q4 2024, underscoring the company's ability to maintain pricing power and efficiency in its operations.
It's worth noting that while Zscaler has shown strong revenue growth and maintains a robust balance sheet, the company is currently not profitable over the last twelve months. However, an InvestingPro Tip indicates that "analysts predict the company will be profitable this year," which could be a positive sign for investors looking at the company's future prospects.
For those interested in a deeper analysis, InvestingPro offers 12 additional tips for Zscaler, providing a more comprehensive view of the company's financial health and market position.
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