Zscaler (NASDAQ:ZS) Trading Down 1.2% – Should You Sell?

Posted by George Bondi on Jun 10th, 2026

Zscaler, Inc. (NASDAQ:ZS – Get Free Report)’s stock price traded down 1.2% during trading on Monday . The company traded as low as $127.74 and last traded at $129.25. 3,436,509 shares were traded during mid-day trading, a decline of 4% from the average session volume of 3,587,286 shares. The stock had previously closed at $130.78.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

Positive Sentiment: Wedbush, RBC, Guggenheim, Rosenblatt and Needham all reiterated bullish ratings on Zscaler, with price targets ranging from $180 to $220, signaling substantial upside from current levels and reinforcing confidence in the company’s growth story. Zscaler Still Seeing Solid Demand for Cloud, AI Products, Wedbush Says
Positive Sentiment: Zscaler used its Zenith Live 2026 event to unveil new AI-focused security products, including ZAgent, AI Broker, Endpoint AI Security, and broader Zero Trust controls for agentic AI, which could strengthen its competitive position as enterprises rush to secure AI workloads. Zscaler Redefines Zero Trust SASE for the AI Era
Positive Sentiment: New and expanded partnerships with companies such as AWS, Google Cloud, OpenAI, Databricks, Saviynt, and NTT DATA suggest growing ecosystem support for Zscaler’s AI security platform and may help drive future adoption. Zscaler Expands AI-Guardian, Uniting Tech Giants to Secure Enterprise AI at Scale
Neutral Sentiment: At Zenith Live, management highlighted Zscaler’s demand trends and strategic AI/security vision, but the transcript itself does not appear to introduce a material new financial update. Zscaler, Inc. (ZS) Presents at Zenith-live-2026 Transcript
Neutral Sentiment: Several articles focused on CEO Jay Chaudhry’s comments and Zscaler’s AI-security thesis, which support the long-term bull case but are more narrative than near-term catalysts. Zscaler CEO Jay Chaudhry: Boldest Statements From Zenith Live 2026
Negative Sentiment: Investor alerts and law-firm investigations into possible securities-law violations are weighing on sentiment, adding legal uncertainty after the stock’s recent sharp decline. INVESTOR ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Zscaler
Negative Sentiment: Additional securities-class-action reminders and fraud-investigation notices are likely keeping pressure on the shares despite the positive product announcements. ZS DEADLINE: The Gross Law Firm Reminds Zscaler, Inc. Investors of Upcoming Securities Class Action Deadline

Analyst Ratings Changes

A number of equities analysts have recently commented on the stock. Citigroup reissued a “market outperform” rating on shares of Zscaler in a research report on Wednesday, May 27th. Rosenblatt Securities reissued a “buy” rating and issued a $200.00 price target on shares of Zscaler in a research report on Wednesday. Stephens set a $205.00 target price on Zscaler in a research note on Wednesday, May 27th. Evercore set a $155.00 target price on Zscaler and gave the company an “in-line” rating in a research note on Wednesday, May 27th. Finally, Wedbush restated an “outperform” rating and set a $220.00 target price on shares of Zscaler in a research note on Wednesday. Thirty-three equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Zscaler currently has an average rating of “Moderate Buy” and a consensus price target of $216.03.

Read Our Latest Research Report on Zscaler

Zscaler Stock Down 0.9%

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’s 50-day simple moving average is $143.22 and its 200-day simple moving average is $180.32. The company has a market capitalization of $20.17 billion, a price-to-earnings ratio of -259.85, a price-to-earnings-growth ratio of 80.81 and a beta of 0.97.

Zscaler (NASDAQ:ZS – Get Free Report) last released its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, beating the consensus estimate of $1.01 by $0.07. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The business had revenue of $850.48 million during the quarter, compared to analysts’ expectations of $835.14 million. During the same quarter last year, the company earned $0.84 earnings per share. The firm’s revenue was up 25.4% on a year-over-year basis. 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 forecast that Zscaler, Inc. will post 0.11 earnings per share for the current year.

Insiders Place Their Bets

In other Zscaler news, CFO Kevin Rubin sold 1,682 shares of the business’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 $263,384.38. Following the sale, the chief financial officer owned 46,479 shares of the company’s stock, valued at $7,278,146.61. The trade was a 3.49% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Robert Schlossman sold 2,263 shares of the business’s stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $354,363.17. Following the completion of the sale, the insider directly owned 72,390 shares in the company, valued at $11,335,550.10. This trade represents a 3.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 12,130 shares of company stock valued at $1,892,487 in the last quarter. 17.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Zscaler

Several institutional investors and hedge funds have recently bought and sold shares of the business. Bessemer Group Inc. increased its holdings in Zscaler by 3.2% in the 3rd quarter. Bessemer Group Inc. now owns 1,021 shares of the company’s stock valued at $306,000 after buying an additional 32 shares during the period. Wedbush Securities Inc. increased its holdings in Zscaler by 0.7% in the 3rd quarter. Wedbush Securities Inc. now owns 5,129 shares of the company’s stock valued at $1,537,000 after buying an additional 34 shares during the period. Goldstream Capital Management Ltd increased its holdings in Zscaler by 0.3% in the 3rd quarter. Goldstream Capital Management Ltd now owns 12,450 shares of the company’s stock valued at $3,731,000 after buying an additional 34 shares during the period. Kentucky Retirement Systems Insurance Trust Fund increased its holdings in Zscaler by 1.4% in the 3rd quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 2,569 shares of the company’s stock valued at $770,000 after buying an additional 36 shares during the period. Finally, Advisor OS LLC increased its holdings in Zscaler by 4.6% in the 3rd quarter. Advisor OS LLC now owns 879 shares of the company’s stock valued at $263,000 after buying an additional 39 shares during the period. Institutional investors own 46.45% of the company’s stock.

Zscaler Company Profile

(Get Free Report)

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.