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SAN JOSE, Calif.—Remo Canessa, Chief Financial Officer of Zscaler, Inc. (NASDAQ:ZS), a cybersecurity company currently valued at $31.5 billion, recently sold shares of the company’s stock, according to a filing with the Securities and Exchange Commission. The transaction comes as Zscaler trades near its 52-week high, with the stock showing strong momentum, up 7.5% in the past week. On March 18, Canessa sold 3,721 shares at an average price of $199.1452, totaling approximately $741,019.
This transaction was conducted to cover tax withholding obligations related to the vesting of restricted stock units, as indicated by the company’s equity incentive plans. Following the sale, Canessa retains ownership of 213,702 shares of Zscaler’s common stock.
The sale was executed in multiple transactions, with prices ranging from $199.1439 to $199.1465 per share. The stock currently trades at $203.55, reflecting continued market confidence in the company’s prospects.
In other recent news, Zscaler has reported notable financial achievements, with a 23% increase in revenue for the second quarter and a 22% free cash flow margin. This performance is complemented by a 23% growth in Annual Recurring Revenue (ARR), highlighting the company’s strategic investments and robust demand for its services. Following these results, several analyst firms have adjusted their outlooks on Zscaler. TD Cowen and UBS both maintained Buy ratings, with TD Cowen setting a price target of $270 and UBS raising its target to $260, citing the company’s strong billings performance and positive growth outlook.
Stifel also kept a Buy rating with a $235 price target, emphasizing Zscaler’s effective go-to-market strategies and its strong position in the zero trust security market. Meanwhile, Cantor Fitzgerald raised its price target to $220 but maintained a Neutral rating, acknowledging Zscaler’s financial performance and updated guidance for fiscal year 2025. Analysts at these firms have noted Zscaler’s progress in key growth areas, such as Data Protection and Artificial Intelligence, and its potential within the US Federal market.
The company’s management has expressed confidence in its strategic direction, supported by an increase in its serviceable available market to approximately $96 billion. Zscaler’s focus on innovation and its expanding product portfolio are seen as key drivers for its continued growth. These developments reflect Zscaler’s ability to capture market share and capitalize on industry trends, as highlighted by the analysts’ revised targets and ratings.
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