Zscaler (NASDAQ:ZS) Director Sells 177 Shares of Stock

Zscaler, Inc. (NASDAQ:ZS) Director James Beer sold 177 shares of Zscaler stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $192.01, for a total transaction of $33,985.77. Following the completion of the transaction, the director owned 4,030 shares of the company’s stock, valued at $773,800.30. This represents a 4.21% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Zscaler Stock Up 3.1%

NASDAQ ZS traded up $5.89 on Thursday, hitting $197.47. 3,015,263 shares of the stock were exchanged, compared to its average volume of 3,320,208. Zscaler, Inc. has a fifty-two week low of $114.63 and a fifty-two week high of $336.99. The company has a 50-day moving average price of $167.06 and a 200-day moving average price of $151.50. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 0.65. The company has a market cap of $32.20 billion, a PE ratio of -506.33, a PEG ratio of 23.05 and a beta of 0.95.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, beating analysts’ consensus estimates of $1.09 by $0.10. The business had revenue of $898.19 million for the quarter, compared to analyst estimates of $876.96 million. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The company’s revenue was up 24.9% on a year-over-year basis. During the same period last year, the business earned $0.89 EPS. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. Sell-side analysts anticipate that Zscaler, Inc. will post 0.61 EPS for the current fiscal year.

Wall Street Analyst Weigh In

ZS has been the subject of a number of recent analyst reports. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $225.00 price target on shares of Zscaler in a report on Friday, September 4th. Morgan Stanley increased their price objective on Zscaler from $145.00 to $165.00 and gave the company an “equal weight” rating in a report on Friday, September 4th. Scotiabank restated an “outperform” rating on shares of Zscaler in a research note on Friday, September 4th. Roth Capital reaffirmed a “neutral” rating and issued a $170.00 price target on shares of Zscaler in a report on Saturday, September 5th. Finally, Jefferies Financial Group reissued a “buy” rating and set a $220.00 price objective on shares of Zscaler in a report on Wednesday, September 2nd. Thirty-four investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Zscaler has an average rating of “Moderate Buy” and an average target price of $218.38.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Options traders purchased a large volume of Zscaler call options, signaling bullish positioning and expectations for additional share-price strength. Traders Purchase Large Volume of Call Options on Zscaler
• Positive Sentiment: Recent earnings momentum remains supportive: Zscaler exceeded quarterly EPS and revenue estimates, with revenue rising 24.9% year over year. The company is also expanding beyond its traditional seat-based business into data security and security for artificial intelligence. Q2 Earnings Highlights: Zscaler Vs. The Rest of the Cybersecurity Stocks
• Positive Sentiment: Zscaler is being highlighted as a strong momentum stock, which may attract additional technical and style-focused investors as shares trade well above their longer-term moving averages. Why Zscaler Is a Strong Momentum Stock
• Neutral Sentiment: Six company insiders, including the CEO and CFO, reported sales totaling approximately 21,473 shares and $4.1 million. Most sales were conducted under Rule 10b5-1 plans or to cover tax withholding on vested equity, reducing their value as a direct bearish signal. Zscaler Insider Transaction Filing
• Negative Sentiment: Analysts and investors are increasingly focused on decelerating annual recurring revenue growth. Although Zscaler’s broader growth engine remains strong, slower ARR could pressure the valuation of the high-growth cybersecurity stock. Zscaler Growth Engine Is Strong, But Slowing ARR Could Pressure the Stock

Institutional Trading of Zscaler

A number of large investors have recently made changes to their positions in the company. WINTON GROUP Ltd grew its position in Zscaler by 56.5% in the 2nd quarter. WINTON GROUP Ltd now owns 4,890 shares of the company’s stock valued at $690,000 after buying an additional 1,765 shares during the last quarter. NewEdge Advisors LLC increased its holdings in Zscaler by 7.8% in the second quarter. NewEdge Advisors LLC now owns 4,626 shares of the company’s stock valued at $653,000 after buying an additional 336 shares in the last quarter. Hudock Inc. acquired a new position in Zscaler during the second quarter worth $311,000. Allworth Financial LP raised its stake in shares of Zscaler by 7.7% during the 2nd quarter. Allworth Financial LP now owns 3,578 shares of the company’s stock worth $505,000 after buying an additional 256 shares during the last quarter. Finally, Arizona State Retirement System lifted its holdings in shares of Zscaler by 6.4% in the second quarter. Arizona State Retirement System now owns 29,965 shares of the company’s stock valued at $4,230,000 after purchasing an additional 1,799 shares in the last quarter. 46.45% of the stock is owned by institutional investors and hedge funds.

Zscaler Company Profile

Zscaler, Inc is a cloud-native cybersecurity company that provides security services designed to help organizations connect users, devices, applications and workloads securely over the internet. Its platform is built around a zero-trust security model, which verifies access based on identity, context and policy rather than relying primarily on a traditional corporate network perimeter.

The company’s offerings include Zscaler Internet Access, which secures access to internet and software-as-a-service applications, and Zscaler Private Access, which provides secure, policy-based access to private applications without requiring conventional virtual private networks.