Zscaler (NASDAQ:ZS) Shares Gap Down – Here’s What Happened

Zscaler, Inc. (NASDAQ:ZS) shares gapped down prior to trading on Friday . The stock had previously closed at $141.50, but opened at $133.79. Zscaler shares last traded at $132.5470, with a volume of 1,532,790 shares.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. TD Cowen dropped their target price on Zscaler from $330.00 to $260.00 and set a “buy” rating for the company in a report on Tuesday, February 24th. Canaccord Genuity Group lowered their price objective on Zscaler from $340.00 to $275.00 and set a “buy” rating for the company in a research report on Friday, February 27th. Barclays set a $220.00 price objective on Zscaler in a research note on Thursday, February 19th. Citizens Jmp cut their target price on shares of Zscaler from $355.00 to $290.00 and set a “market outperform” rating on the stock in a report on Friday, February 27th. Finally, Piper Sandler lowered their price target on shares of Zscaler from $260.00 to $185.00 and set a “neutral” rating for the company in a report on Friday, February 27th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, six have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Zscaler presently has an average rating of “Moderate Buy” and a consensus target price of $267.13.

Zscaler Trading Down 5.8%

The firm has a market cap of $21.43 billion, a PE ratio of -318.07 and a beta of 1.07. The firm has a fifty day simple moving average of $172.15 and a two-hundred day simple moving average of $239.29. The company has a current ratio of 1.90, a quick ratio of 1.90 and a debt-to-equity ratio of 0.78.

Zscaler (NASDAQ:ZS) last posted its earnings results on Thursday, February 26th. The company reported $1.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.89 by $0.12. The firm had revenue of $815.75 million for the quarter, compared to analysts’ expectations of $798.92 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The business’s revenue was up 25.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.78 earnings per share. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. Equities analysts forecast that Zscaler, Inc. will post -0.1 EPS for the current year.

Insider Buying and Selling at Zscaler

In other Zscaler news, insider Robert Schlossman sold 2,263 shares of the company’s stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $354,363.17. Following the completion of the transaction, the insider directly owned 72,390 shares in the company, valued at approximately $11,335,550.10. This represents a 3.03% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Jagtar Singh Chaudhry sold 1,941 shares of the firm’s stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $303,941.19. Following the completion of the sale, the chief executive officer directly owned 345,916 shares of the company’s stock, valued at approximately $54,166,986.44. This represents a 0.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 12,783 shares of company stock worth $2,040,536. 17.20% of the stock is owned by corporate insiders.

Institutional Trading of Zscaler

Large investors have recently bought and sold shares of the company. Groupama Asset Managment grew its holdings in shares of Zscaler by 76,352.6% during the 3rd quarter. Groupama Asset Managment now owns 4,750,000 shares of the company’s stock worth $1,423,385,000 after acquiring an additional 4,743,787 shares during the period. Federated Hermes Inc. lifted its stake in shares of Zscaler by 314.0% in the 2nd quarter. Federated Hermes Inc. now owns 1,171,983 shares of the company’s stock valued at $367,932,000 after purchasing an additional 888,888 shares during the period. Price T Rowe Associates Inc. MD boosted its position in shares of Zscaler by 43.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company’s stock valued at $578,576,000 after purchasing an additional 777,414 shares in the last quarter. AQR Capital Management LLC boosted its position in shares of Zscaler by 61.8% during the third quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company’s stock valued at $576,083,000 after purchasing an additional 741,756 shares in the last quarter. Finally, Vanguard Group Inc. grew its stake in Zscaler by 6.1% in the third quarter. Vanguard Group Inc. now owns 11,367,903 shares of the company’s stock worth $3,406,506,000 after purchasing an additional 652,771 shares during the period. 46.45% of the stock is owned by institutional investors.

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.