This Insider Has Just Sold Shares In Zscaler

Some Zscaler, Inc. (NASDAQ:ZS) shareholders may be a little concerned to see that the Chief Revenue Officer & President of Global Sales, Mike Rich, recently sold a substantial US$3.3m worth of stock at a price of US$281 per share. That sale reduced their total holding by 24% which is hardly insignificant, but far from the worst we've seen.

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Zscaler Insider Transactions Over The Last Year

The insider, Ajay Mangal, made the biggest insider sale in the last 12 months. That single transaction was for US$38m worth of shares at a price of US$202 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$294. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 0.6% of Ajay Mangal's holding.

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

View our latest analysis for Zscaler

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Zscaler insiders own about US$16b worth of shares (which is 36% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Zscaler Insiders?

Insiders sold Zscaler shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Zscaler. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Zscaler.

Of course Zscaler may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.