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Zscaler (NASDAQ:ZS) shares are down over 3% in pre-open Tuesday after the cybersecurity company said Amit Sinha will resign from the position of the President, effective October 21.
Mr. Sinha has accepted the CEO position at a privately held technology company, Zscaler added. He will continue his role as a member of the company’s board.
For MoffettNathanson analysts, the news is evidence of “the kind of talent that Zscaler is developing.” They also believe that relacing Mr. Sinha with a new President “is not necessary and the driving force behind the firm’s technology innovation remains.”
Guggenheim analysts added that Zscaler confirmed to them that Mr. Sinha is not moving to a competitor.
“While Mr. Sinha was an important and visible part of the organization, we expect little disruption, with no change to the product organization, which is currently overseen by others. While it’s never (or rarely) thought of as good news for a C-level executive to leave a company, we believe this change will not impact Zscaler’s near- or long-term prospects, and it appears to be a unique opportunity for Mr. Sinha,” the analysts said in a client note.
Zscaler shares are down over 50% YTD.
