The trading of options on IT security play Zscaler (US:ZS) is not very bullish, even though the company reported strong fiscal third-quarter results on June 2.

ZS says that its “platform protects thousands of customers from cyberattacks and data loss” and is installed in over 150 data centers around the world.

The mediocre options activity may indicate that ZS stock — which surged 32% in the month that ended on June 2 after rallying 5.4% on the latter day — is poised for a pullback.

In the month that ended on June 2, the ETFMG Prime Cyber Security ETF (US:HACK) rose 20%, while ZS soared 31% during the same period.

Mediocre Options Action

The put/call ratio for ZS stock on June 2 was 0.9, as call option buyers obtained options on only slightly more shares than those who acquired puts, according to data compiled by Fintel. Additionally, the ratio was slightly less bullish than on June 1, when it came in at 0.82 and on May 31, when the ratio was 0.81.

On the other hand, the ratios for all the options that expire this month are more bullish. Specifically, the metrics for June 9, June 16, June 23, and June 30 are 0.69, 0.79, 0.64, and 0.72, respectively.

Strong Q3 Results

In the company’s Q3 that ended on April 30, Zscaler’s top line soared 46% versus the same period a year earlier to $418.8 million, while its net income, excluding certain items, jumped to $74.6 million from $24.7 million. Also noteworthy is that its billings jumped 40% YOY to $482.3 million.

ZS generated earnings per share of 48 cents, versus analysts’ average estimate of 42 cents, while the company’s top line was slightly above the mean estimate of $415.66 million.

A number of investment banks raised their price targets on ZS stock in the wake of the results. Wedbush, for example, increased its price target on the shares to $160 from $150. The firm thinks the company is continuing to demonstrate “momentum” inthe cloud security space, and it views ZS stock as one of the best equities in the sector. Wedbush kept an ‘outperform’ rating on the shares.

Meanwhile, BMO Capital raised its price target to $150 from $120, calling the 0.5% increase in the company’s billings versus the previous quarter “impressive,” since Q3 is usually quite weak for ZS in that area. However, the bank remains worried about the company’s competition and its prices. Nevertheless, it was upbeat on the results overall and kept an ‘outperform’ rating on the shares.

Goldman Sachs, with a $137 target, drew a distinction between ZS management’s macro outlook and those of competitors CrowdStrike (US:CRWD) and Okta (US:OKTA), which have noted a worsening year to date. Analysts there indicated Zscaler seems more resilient than its peers.

Institutional Buyers

Several large institutions purchased meaningful amounts of Zscaler’s shares last quarter, data compiled by Fintel shows. Vanguard reported on May 15 that it had added 111,754 shares of ZS,while T. Rowe Price on the same day noted that it had obtained 202,804 shares of the name in Q1.

Meanwhile, State Street reported on May 15 that it had added nearly 23,000 shares, and Cantor Fitzgerald on the same day noted that it had obtained 137,000 shares. Finally, the Teacher Retirement System of Texas added nearly 46,000 shares.

This article originally appeared on Fintel

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