Zscaler Inc. (NASDAQ:ZS) stock climbed more than 6% on Friday after the cybersecurity company announced a global partnership with the Aston Martin Aramco Formula One Team.
Aston Martin Aramco Formula One Partnership
The Aston Martin Aramco Formula One Team announced a new multi-year partnership with Zscaler. Under the agreement, Aston Martin Aramco will utilize Zscaler’s Zero Trust Exchange platform to secure car designs, race strategies and real-time data transmission between the track and the U.K.-based AMRTC.
Zscaler joins the team as a Global Cybersecurity Partner. The company’s branding will debut on the AMR26 race car’s nose, seatbelts and wing mirrors, as well as on driver overalls at the Austrian Grand Prix.
Financial terms of the partnership were not disclosed.
Short Interest Data
Data from the latest reporting period shows short interest in Zscaler decreased from 12.07 million shares to 11.88 million shares. This volume represents 11.29% of the company’s publicly available shares sold short. Based on the recent average daily trading volume of 5.36 million shares, short sellers would require 2.22 days to cover their positions.
Technical Picture Remains Mixed
Friday’s rally pushed Zscaler back toward its short-term trend levels. The stock traded near its 20-day simple moving average of $130.72 and just below its 20-day exponential moving average of $131.77.
However, the longer-term trend remains under pressure. Shares are about 7.4% below the 50-day moving average, 11.1% below the 100-day moving average and 37.1% below the 200-day moving average.
The relative strength index stands at 47.47, indicating neutral momentum. A reading near 50 suggests buying and selling pressure remain balanced.
Traders may watch resistance near $133, while support sits around $128.
Analyst Outlook
Wall Street maintains a consensus Buy rating on the stock with an average price forecast of $198.14. Recent analyst actions include:
- KeyBanc: Overweight; price forecast lowered to $176 on June 25.
- Stephens: Overweight; $200 price forecast maintained on June 12.
- Canaccord Genuity: Buy; $210 price forecast maintained on June 11.
ZS Stock Price Activity: Zscaler shares were up 5.88% at $131.07 at the time of publication on Friday, according to Benzinga Pro data.
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