On July 10, 2023, Remo Canessa, the Chief Financial Officer (CFO) of Zscaler Inc (ZS, Financial), sold 12,500 shares of the company. This move is part of a series of transactions Canessa has made over the past year, during which he sold a total of 41,565 shares and made no purchases.
Zscaler Inc is a leading company in the field of cloud-based security. The company provides a platform that is used by enterprises to secure their connections to the internet, protect their data, and ensure the privacy of their users. Zscaler's services are used by thousands of organizations around the world, including many Fortune 500 companies.
The sale by Canessa is part of a broader trend of insider selling at Zscaler. Over the past year, there have been 23 insider sells and only one insider buy. This could be a signal that insiders believe the stock is currently overvalued, or it could simply reflect personal financial decisions by the insiders.
Despite the insider selling, Zscaler's stock price has remained relatively stable. On the day of Canessa's recent sale, the stock was trading at $145.53, giving the company a market cap of $22.51 billion. This suggests that the market is not overly concerned about the insider selling, and believes in the long-term prospects of the company.
According to the GuruFocus Value, Zscaler is significantly undervalued. The stock's price-to-GF-Value ratio is 0.33, indicating that it is trading at a significant discount to its intrinsic value. The GF Value is calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates.
In conclusion, while the recent insider selling at Zscaler may raise some eyebrows, the company's strong market position and the significant undervaluation of its stock suggest that it could still be a good investment opportunity. As always, investors should do their own research and consider their own risk tolerance before making investment decisions.
