Have Insiders Sold Zscaler Shares Recently?

We wouldn't blame Zscaler, Inc. (NASDAQ:ZS) shareholders if they were a little worried about the fact that Robert Schlossman, the Chief Legal Officer & Secretary recently netted about US$1.8m selling shares at an average price of US$179. That's a big disposal, and it decreased their holding size by 16%, which is notable but not too bad.

Check out our latest analysis for Zscaler

The Last 12 Months Of Insider Transactions At Zscaler

In the last twelve months, the biggest single sale by an insider was when the insider, Ajay Mangal, sold US$11m worth of shares at a price of US$198 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$180. So it may not shed much light on insider confidence at current levels.

Zscaler insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Zscaler better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Zscaler insiders own about US$10b worth of shares (which is 38% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Zscaler Insiders?

Insiders haven't bought Zscaler stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Zscaler has 2 warning signs and it would be unwise to ignore them.

But note: Zscaler may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com