On September 18, 2023, Remo Canessa, the Chief Financial Officer (CFO) of Zscaler Inc (ZS, Financial), sold 18,693 shares of the company. This move is part of a series of transactions made by the insider over the past year, which saw a total of 74,892 shares sold and no shares purchased.
Remo Canessa is a seasoned financial executive with a wealth of experience in the tech industry. He has been with Zscaler Inc, a leading cloud-based information security company, since 2017. Under his financial leadership, the company has seen significant growth and expansion.
Zscaler Inc is a global cloud-based information security company. The company provides a platform that is used by enterprises to secure connections between users and applications, regardless of device, location, or network. Zscaler Inc's services include secure access service edge (SASE), zero trust network access (ZTNA), and more. The company's innovative solutions have made it a leader in its industry.
The insider's recent sell-off is part of a broader trend within the company. Over the past year, there has been a total of 26 insider sells and only 1 insider buy. This trend could be indicative of the insiders' sentiment towards the company's stock and its future prospects.
On the day of the insider's recent sell, Zscaler Inc's shares were trading at $154.28, giving the company a market cap of $22.82 billion. Despite the insider's sell-off, the stock appears to be significantly undervalued based on its GuruFocus Value of $438.78, with a price-to-GF-Value ratio of 0.35.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts. The significantly undervalued status of Zscaler Inc's stock, despite the insider's sell-off, could present a potential opportunity for investors.
However, it's important to note that insider selling does not necessarily indicate a negative outlook for the company. Insiders may sell shares for various reasons, including personal financial planning or diversification. Therefore, while the insider's sell-off is a factor to consider, it should not be the sole basis for investment decisions.
Investors should also consider other factors such as the company's financial health, market position, and growth prospects. As always, thorough research and due diligence are key to making informed investment decisions.
