Zscaler (NASDAQ:ZS) Reaches New 1-Year Low – Here’s What Happened

Zscaler, Inc. (NASDAQ:ZS)’s stock price hit a new 52-week low on Friday . The company traded as low as $162.94 and last traded at $167.3360, with a volume of 1898416 shares trading hands. The stock had previously closed at $169.39.

Wall Street Analysts Forecast Growth

ZS has been the subject of a number of analyst reports. BTIG Research restated a “buy” rating and set a $365.00 price objective on shares of Zscaler in a report on Wednesday, November 26th. Needham & Company LLC reduced their price target on shares of Zscaler from $350.00 to $310.00 and set a “buy” rating on the stock in a research report on Wednesday, November 26th. Cantor Fitzgerald restated an “overweight” rating on shares of Zscaler in a research report on Wednesday, November 26th. Royal Bank Of Canada dropped their price objective on Zscaler from $366.00 to $290.00 and set an “outperform” rating on the stock in a research note on Monday, January 5th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Zscaler in a research note on Wednesday, January 21st. One research analyst has rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $317.63.

Zscaler Stock Down 1.9%

The company has a debt-to-equity ratio of 0.86, a current ratio of 1.82 and a quick ratio of 1.82. The company has a market capitalization of $26.51 billion, a price-to-earnings ratio of -639.26, a PEG ratio of 387.76 and a beta of 1.02. The firm has a 50-day moving average price of $222.56 and a two-hundred day moving average price of $268.29.

Zscaler (NASDAQ:ZS) last released its earnings results on Tuesday, November 25th. The company reported $0.96 EPS for the quarter, beating the consensus estimate of $0.85 by $0.11. The firm had revenue of $788.11 million for the quarter, compared to analysts’ expectations of $773.86 million. Zscaler had a negative return on equity of 0.12% and a negative net margin of 1.45%.The business’s quarterly revenue was up 25.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.77 EPS. Zscaler has set its FY 2026 guidance at 3.780-3.820 EPS and its Q2 2026 guidance at 0.890-0.900 EPS. As a group, sell-side analysts anticipate that Zscaler, Inc. will post -0.1 earnings per share for the current fiscal year.

Insider Buying and Selling at Zscaler

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,843 shares of the business’s stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total transaction of $656,221.26. Following the sale, the chief executive officer directly owned 347,857 shares of the company’s stock, valued at $80,292,352.74. The trade was a 0.81% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, EVP Raj Judge sold 3,438 shares of the stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total transaction of $793,559.16. Following the transaction, the executive vice president owned 70,394 shares of the company’s stock, valued at approximately $16,248,343.08. This represents a 4.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 19,350 shares of company stock valued at $4,471,509 in the last three months. 17.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Harmony Asset Management LLC grew its stake in Zscaler by 37.0% in the fourth quarter. Harmony Asset Management LLC now owns 3,015 shares of the company’s stock valued at $678,000 after purchasing an additional 815 shares in the last quarter. Leonteq Securities AG bought a new position in shares of Zscaler in the fourth quarter valued at $4,571,000. Princeton Capital Management LLC increased its holdings in Zscaler by 2.0% during the fourth quarter. Princeton Capital Management LLC now owns 24,155 shares of the company’s stock worth $5,433,000 after buying an additional 465 shares during the last quarter. ABN Amro Investment Solutions increased its holdings in Zscaler by 270.9% during the fourth quarter. ABN Amro Investment Solutions now owns 6,105 shares of the company’s stock worth $1,373,000 after buying an additional 4,459 shares during the last quarter. Finally, IFP Advisors Inc raised its position in Zscaler by 23.2% during the fourth quarter. IFP Advisors Inc now owns 2,057 shares of the company’s stock worth $463,000 after acquiring an additional 387 shares in the last quarter. 46.45% of the stock is owned by institutional investors and hedge funds.

About Zscaler

Zscaler is a cloud security company that delivers a cloud-native platform to protect users, applications and data as organizations move away from traditional, network-centric security architectures. The company focuses on a zero trust approach that assumes no implicit trust for users or devices, providing secure access to the internet, SaaS applications and private applications regardless of where users are located. Zscaler positions its services as an alternative to legacy appliances and site-centric VPNs, aiming to simplify security while enabling modern, distributed workforces.

Key offerings are built around the Zscaler Zero Trust Exchange, a multi-tenant cloud platform that enforces security and access policies in-line.