Zscaler (NASDAQ:ZS) Shares Down 3.3% – Here’s What Happened

Zscaler, Inc. (NASDAQ:ZS) was down 3.3% on Friday . The company traded as low as $128.98 and last traded at $130.78. Approximately 4,562,825 shares changed hands during trading, an increase of 27% from the average daily volume of 3,586,887 shares. The stock had previously closed at $135.26.

Analysts Set New Price Targets

Several research firms have issued reports on ZS. The Goldman Sachs Group restated a “neutral” rating and set a $179.00 price objective on shares of Zscaler in a report on Wednesday, May 27th. FBN Securities restated an “outperform” rating and set a $175.00 price objective on shares of Zscaler in a report on Wednesday, May 27th. Mizuho dropped their price objective on Zscaler from $210.00 to $185.00 and set an “outperform” rating on the stock in a report on Wednesday, May 27th. HC Wainwright upgraded Zscaler from a “buy” rating to a “buy” rating in a report on Monday, May 18th. Finally, Stephens set a $205.00 price objective on Zscaler in a report on Wednesday, May 27th. Thirty-three equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $216.03.

Zscaler Trading Down 3.3%

The company has a market cap of $21.15 billion, a price-to-earnings ratio of -272.45 and a beta of 0.97. The firm has a 50-day moving average price of $143.79 and a 200 day moving average price of $183.80. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72.

Zscaler (NASDAQ:ZS) last issued its earnings results on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, topping the consensus estimate of $1.01 by $0.07. The company had revenue of $850.48 million during the quarter, compared to analyst estimates of $835.14 million. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The business’s revenue was up 25.4% on a year-over-year basis. During the same quarter last year, the firm 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. As a group, sell-side analysts forecast that Zscaler, Inc. will post -0.03 EPS for the current year.

Insider Buying and Selling

In other news, CFO Kevin Rubin sold 1,682 shares of Zscaler stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $263,384.38. Following the completion of the transaction, the chief financial officer owned 46,479 shares in the company, valued at approximately $7,278,146.61. This trade represents a 3.49% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Jagtar Singh Chaudhry sold 1,941 shares of Zscaler stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $303,941.19. Following the completion of the transaction, the chief executive officer owned 345,916 shares of the company’s stock, valued at approximately $54,166,986.44. The trade was a 0.56% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 12,130 shares of company stock worth $1,892,487. 17.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Integrated Wealth Concepts LLC boosted its position in Zscaler by 19.9% during the 1st quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company’s stock valued at $285,000 after purchasing an additional 239 shares during the period. NewEdge Advisors LLC boosted its position in Zscaler by 8.2% during the 1st quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock valued at $972,000 after purchasing an additional 370 shares during the period. Empowered Funds LLC boosted its position in Zscaler by 9.2% during the 1st quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock valued at $558,000 after purchasing an additional 238 shares during the period. Sivia Capital Partners LLC acquired a new position in Zscaler during the 2nd quarter valued at approximately $252,000. Finally, Jump Financial LLC acquired a new position in Zscaler during the 2nd quarter valued at approximately $3,019,000. Institutional investors and hedge funds own 46.45% of the company’s stock.

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.