Zscaler Saw Bearish Options Activity Amid Analysts' Optimism

A recent report reveals a notable bearish sentiment among large investors in Zscaler, with 55% of options trades indicating pessimism. Despite this, analysts maintain an average target price of $206.00, suggesting a mix of cautious outlook and potential growth.

Date: 03-10-2024

AI Rating: 6

The report outlines a mixed sentiment regarding Zscaler (NASDAQ: ZS), particularly in options trading where significant investors are predominantly expressing bearish expectations. With 55% of trades leaning bearish compared to only 22% bullish, it reflects a cautious approach.

In terms of options for Zscaler, the trade activity comprises 2 puts totaling $365,000 and 7 calls aggregating $1,123,045, demonstrating a stronger inclination towards calls but still hinting at underlying bearish sentiment.

Regarding projected price targets, the trading activity suggests investors anticipate Zscaler's price will fluctuate between $135.0 and $230.0 over the next few months. This range indicates uncertainty, highlighting that while there is optimism among a portion of traders, a bearish perspective dominates overall.

Zscaler's current market standing indicates a price increase of 1.52% to $169.53, based on a volume of 1,255,322 shares. Traders should be aware that the RSI indicators hint that the stock may be nearing overbought conditions.

Analyst perspectives add another layer; despite the bearish tone from the options market, experts cast a generally optimistic forecast with an average target price of $206.00. The ratings from various analysts range from Neutral at $170 (Cantor Fitzgerald) to Strong Buy at $235 (Needham), showcasing divided opinions but suggesting room for growth.

Stocks: ZS