Insider Selling: Zscaler (NASDAQ:ZS) Insider Sells $5,400,851.94 in Stock

Zscaler, Inc. (NASDAQ:ZS) insider Adam Geller sold 23,958 shares of the stock in a transaction that occurred on Friday, October 9th. The shares were sold at an average price of $225.43, for a total transaction of $5,400,851.94. Following the sale, the insider directly owned 38,308 shares in the company, valued at $8,635,772.44. This trade represents a 38.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Adam Geller also recently made the following trade(s):

• On Monday, October 12th, Adam Geller sold 1,042 shares of Zscaler stock. The shares were sold at an average price of $235.95, for a total transaction of $245,859.90.
• On Monday, September 21st, Adam Geller sold 661 shares of Zscaler stock. The stock was sold at an average price of $200.00, for a total transaction of $132,200.00.
• On Thursday, September 17th, Adam Geller sold 4,584 shares of Zscaler stock. The stock was sold at an average price of $192.01, for a total value of $880,173.84.
• On Wednesday, September 16th, Adam Geller sold 5,578 shares of Zscaler stock. The stock was sold at an average price of $192.76, for a total value of $1,075,215.28.

Zscaler Stock Down 0.2%

Shares of ZS opened at $220.43 on Friday. The firm has a market capitalization of $35.94 billion, a price-to-earnings ratio of -565.21, a PEG ratio of 21.22 and a beta of 0.94. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.70 and a current ratio of 1.70. The business’s fifty day moving average price is $191.23 and its two-hundred day moving average price is $159.67. Zscaler, Inc. has a 52 week low of $114.63 and a 52 week high of $336.99.

Zscaler (NASDAQ:ZS) last released its earnings results on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, beating the consensus estimate of $1.09 by $0.10. The company had revenue of $898.19 million during the quarter, compared to analysts’ expectations of $876.96 million. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%. The business’s revenue for the quarter was up 24.9% on a year-over-year basis. During the same period last year, the firm 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. On average, analysts predict that Zscaler, Inc. will post 0.69 earnings per share for the current year.

Wall Street Analyst Weigh In

ZS has been the subject of several recent research reports. Roth Capital reissued a “neutral” rating and set a $170.00 price objective on shares of Zscaler in a report on Saturday, September 5th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating on shares of Zscaler in a research note on Friday, September 4th. BTIG Research reaffirmed a “neutral” rating on shares of Zscaler in a research note on Wednesday, October 7th. Wedbush lifted their price target on shares of Zscaler from $215.00 to $240.00 and gave the stock an “outperform” rating in a research report on Wednesday, October 7th. Finally, Morgan Stanley boosted their price target on shares of Zscaler from $165.00 to $185.00 and gave the stock an “equal weight” rating in a research note on Wednesday, October 7th. Thirty-five investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Zscaler currently has an average rating of “Moderate Buy” and an average target price of $239.78.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in ZS. Quintet Private Bank Europe S.A. increased its holdings in Zscaler by 4.5% in the third quarter. Quintet Private Bank Europe S.A. now owns 1,170 shares of the company’s stock valued at $233,000 after purchasing an additional 50 shares during the last quarter. Triumph Capital Management lifted its stake in Zscaler by 6.3% in the third quarter. Triumph Capital Management now owns 923 shares of the company’s stock valued at $184,000 after buying an additional 55 shares during the period. NFSG Corp boosted its holdings in Zscaler by 2.6% during the third quarter. NFSG Corp now owns 2,437 shares of the company’s stock worth $486,000 after buying an additional 62 shares during the last quarter. Parkside Financial Bank & Trust boosted its holdings in Zscaler by 18.8% during the second quarter. Parkside Financial Bank & Trust now owns 417 shares of the company’s stock worth $59,000 after buying an additional 66 shares during the last quarter. Finally, Elevation Wealth Partners LLC boosted its holdings in Zscaler by 84.3% during the third quarter. Elevation Wealth Partners LLC now owns 153 shares of the company’s stock worth $31,000 after buying an additional 70 shares during the last quarter. 46.45% of the stock is currently owned by institutional investors.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Citigroup raised its price target and rating: Citi increased its target for Zscaler from $245 to $260 and upgraded the stock to Buy, implying roughly 18% upside from the referenced price. The firm cited improving cybersecurity-spending momentum. Cybersecurity Stocks Retreat From Record Highs
• Positive Sentiment: Enterprise demand indicators improved: Wells Fargo reported that discussions with channel partners and its reseller survey pointed to stronger cybersecurity spending heading into 2027. Separately, BT International added Zscaler’s security-service-edge offerings to its global-fabric portfolio, potentially expanding distribution and customer reach. BT International Adds Zscaler SSE Options
• Neutral Sentiment: Sector pullback is offsetting company-specific positives: Cybersecurity stocks retreated from recent highs, suggesting investors are taking profits even as analysts become more constructive on spending trends and Zscaler’s long-term growth prospects.
• Negative Sentiment: Investor-relations and legal concerns resurfaced: Pomerantz LLP announced an investigation into potential claims on behalf of Zscaler investors. The announcement does not establish wrongdoing, but litigation-related headlines can weigh on sentiment. Pomerantz Investor Alert
• Negative Sentiment: Insider selling and valuation risks remain overhangs: Chief Product Officer Adam Geller sold approximately $5.65 million of ZS shares through a pre-arranged Rule 10b5-1 plan. Commentary also cautioned that expected fiscal 2027 growth moderation and weak net-new ARR guidance may limit upside after the stock’s substantial rebound. Zscaler Insider Sale

Zscaler Company Profile

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

The company’s offerings include Zscaler Internet Access, which helps secure internet and software-as-a-service access, and Zscaler Private Access, which provides controlled access to private applications without extending an organization’s network to remote users.