Zscaler, Inc. $ZS Shares Sold by Royal Bank of Canada

Royal Bank of Canada lowered its position in Zscaler, Inc. (NASDAQ:ZS) by 29.1% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 189,192 shares of the company’s stock after selling 77,811 shares during the quarter. Royal Bank of Canada’s holdings in Zscaler were worth $26,541,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Oxbow Advisors LLC purchased a new stake in shares of Zscaler in the fourth quarter valued at about $2,939,000. Qsemble Capital Management LP increased its stake in shares of Zscaler by 105.5% during the 4th quarter. Qsemble Capital Management LP now owns 15,773 shares of the company’s stock worth $3,548,000 after purchasing an additional 8,099 shares in the last quarter. Norges Bank acquired a new position in shares of Zscaler during the 4th quarter worth approximately $79,762,000. Leonteq Securities AG acquired a new position in shares of Zscaler during the 4th quarter worth approximately $4,571,000. Finally, Swedbank AB lifted its stake in Zscaler by 92.8% in the 4th quarter. Swedbank AB now owns 20,706 shares of the company’s stock valued at $4,657,000 after buying an additional 9,966 shares in the last quarter. Institutional investors and hedge funds own 46.45% of the company’s stock.

Insider Transactions at Zscaler

In other Zscaler news, insider Robert Schlossman sold 3,146 shares of the business’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $397,748.78. Following the completion of the sale, the insider owned 69,366 shares of the company’s stock, valued at approximately $8,769,943.38. The trade was a 4.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Adam Geller sold 2,817 shares of the company’s stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $122.60, for a total value of $345,364.20. Following the sale, the insider owned 42,314 shares of the company’s stock, valued at $5,187,696.40. This represents a 6.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 16,269 shares of company stock worth $2,052,589 over the last ninety days. 17.20% of the stock is owned by insiders.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Gartner recognition reinforces Zscaler’s competitive position. Zscaler was named a Leader in both Gartner’s 2026 Magic Quadrant for SASE Platforms and its Security Service Edge report. It has now been recognized as an SSE Leader for five consecutive years, which may support customer confidence and help the company win enterprise contracts. Zscaler Recognized as a Leader in Both Gartner Reports
• Positive Sentiment: Large-deal activity is accelerating. Zscaler reportedly is seeing record-sized deals, driven by Zero Trust adoption, demand for AI protection, platform consolidation and increasing Z-Flex contract values. Larger, broader contracts could improve revenue visibility and customer expansion prospects. Zscaler’s Large Deal Activity Surges
• Positive Sentiment: AI initiatives are adding to the growth narrative. Zscaler introduced its ZAgent Framework for agentic AI tools within its SASE platform, while joining the CSAI Foundation as a Vanguard member. These developments position the company to benefit from rising demand for secure enterprise AI adoption. Zscaler Gartner and ZAgent Framework Report
• Positive Sentiment: Analysts and media are highlighting potential undervaluation. Recent commentary suggests ZS could be undervalued following a special investor call, helping renew interest ahead of the company’s next earnings release. Zscaler Could Be Undervalued
• Neutral Sentiment: Broader technology-sector momentum is also contributing. Zscaler was included among several soaring cloud, cybersecurity and AI stocks, indicating that part of the move reflects wider investor enthusiasm for growth technology rather than company-specific news alone. Technology Stocks Are Soaring
• Negative Sentiment: AI could test Zscaler’s competitive moat. One analysis cautions that rapidly evolving AI capabilities may challenge the durability of Zscaler’s differentiation, creating a longer-term execution and competitive risk despite the current positive news flow. AI Is Testing Zscaler’s Moat

Zscaler Stock Performance

Shares of ZS stock opened at $163.22 on Wednesday. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86. The firm has a market capitalization of $26.39 billion, a price-to-earnings ratio of -340.03, a price-to-earnings-growth ratio of 55.59 and a beta of 0.94. Zscaler, Inc. has a one year low of $114.63 and a one year high of $336.99. The company has a 50 day moving average price of $139.56 and a 200 day moving average price of $153.09.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, beating analysts’ consensus estimates of $1.01 by $0.07. The company had revenue of $850.48 million for the quarter, compared to analyst estimates of $835.14 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. Zscaler’s revenue for the quarter was up 25.4% on a year-over-year basis. During the same quarter last year, the business earned $0.84 EPS. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Sell-side analysts anticipate that Zscaler, Inc. will post 0.12 EPS for the current year.

Analysts Set New Price Targets

A number of equities research analysts have commented on the company. JPMorgan Chase & Co. lowered their target price on Zscaler from $250.00 to $205.00 and set an “overweight” rating on the stock in a report on Wednesday, May 27th. Weiss Ratings reissued a “sell (e+)” rating on shares of Zscaler in a report on Tuesday, June 9th. Wells Fargo & Company reduced their price objective on Zscaler from $210.00 to $180.00 and set an “overweight” rating on the stock in a research report on Thursday, May 28th. Barclays decreased their price objective on Zscaler from $180.00 to $170.00 and set an “overweight” rating on the stock in a research note on Wednesday, May 27th. Finally, Stifel Nicolaus dropped their price objective on Zscaler from $180.00 to $175.00 and set a “buy” rating for the company in a research report on Wednesday, May 27th. Thirty-four investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Zscaler currently has a consensus rating of “Moderate Buy” and an average price target of $214.21.

Zscaler Company Profile

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.