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Jagtar Singh Chaudhry, CEO and Chairman of Zscaler, Inc. (NASDAQ:ZS), recently sold shares of the company’s common stock valued at approximately $429,160, according to a filing with the Securities and Exchange Commission. The cybersecurity company, currently trading at $203.55 and maintaining impressive gross profit margins of 77.86%, has shown strong market performance, trading near its 52-week high of $217.84. InvestingPro analysis indicates the stock is slightly overvalued at current levels. The sale, executed on March 18, 2025, involved 2,155 shares sold at a weighted average price of $199.1463. This transaction was made to cover tax withholding obligations related to the vesting of restricted stock units, as mandated by Zscaler’s equity incentive plans, and was not a discretionary trade by Mr. Chaudhry. Following the transaction, Mr. Chaudhry holds 356,414 shares directly, with additional shares held indirectly through various trusts. For deeper insights into insider transactions and comprehensive financial analysis, including 12 additional ProTips and detailed valuation metrics, check out the full company report on InvestingPro.
In other recent news, Zscaler reported a 23% increase in revenue and a 22% free cash flow margin for the second quarter, reflecting strong financial performance. The company also saw a 23% growth in Annual Recurring Revenue (ARR), with expectations to reach $3 billion in ARR by the fiscal year 2025. UBS analyst Roger Boyd raised the price target for Zscaler to $260, citing strong fourth-quarter billings performance that surpassed expectations. Meanwhile, TD Cowen and Stifel both maintained their Buy ratings, with price targets of $270 and $235, respectively, highlighting Zscaler’s execution and strategic positioning in the market.
Cantor Fitzgerald increased its price target to $220, maintaining a Neutral rating, while acknowledging Zscaler’s earnings exceeding consensus estimates. Analysts noted Zscaler’s effective execution strategy and product innovation as key drivers of its success. The company is poised to benefit from increased demand for its Zero Trust solutions and AI-powered capabilities. Zscaler’s management has expressed confidence in its trajectory, supported by a growing serviceable available market, now estimated at $96 billion. These developments indicate Zscaler’s strong positioning to capture further growth in the cybersecurity space.
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