Zscaler, Inc. (NASDAQ:ZS – Get Free Report) shot up 1.7% on Tuesday . The company traded as high as $129.42 and last traded at $126.17. 2,335,476 shares were traded during trading, a decline of 37% from the average daily volume of 3,702,261 shares. The stock had previously closed at $124.06.
More Zscaler News
Here are the key news stories impacting Zscaler this week:
- Positive Sentiment: Analysts highlighted momentum in Zscaler’s Z-Flex offering, saying it is helping drive higher customer spending, stronger platform adoption, and better revenue visibility as total contract value, annual recurring revenue, and remaining performance obligations continue to accelerate.
- Positive Sentiment: Another Zscaler-focused article noted that the company has been drawing strong investor interest as a trending stock, reflecting ongoing attention around its growth outlook and positioning in cybersecurity.
- Positive Sentiment: Coverage also pointed to a major healthcare win and recent index-related profile lift, which could help support Zscaler’s sales pipeline and brand visibility.
- Positive Sentiment: Comparative commentary versus CrowdStrike said Zscaler may have an edge due to expanding platform adoption and a lower valuation, which could appeal to investors looking for growth at a more reasonable price.
- Neutral Sentiment: Insider Adam Geller sold 2,817 shares at an average price of $122.60 under a pre-arranged Rule 10b5-1 plan. While insider sales can sometimes weigh on sentiment, the sale appears routine and does not necessarily signal a negative outlook.
Analyst Upgrades and Downgrades
A number of equities analysts have recently issued reports on ZS shares. Citizens Jmp dropped their price target on Zscaler from $290.00 to $210.00 and set a “market outperform” rating on the stock in a research report on Friday, May 1st. Zacks Research raised shares of Zscaler from a “strong sell” rating to a “hold” rating in a research note on Wednesday, May 27th. UBS Group dropped their target price on shares of Zscaler from $260.00 to $225.00 and set a “buy” rating on the stock in a report on Wednesday, May 27th. Stephens reissued an “overweight” rating and set a $200.00 target price on shares of Zscaler in a research report on Friday, June 12th. Finally, Oppenheimer lowered their price target on shares of Zscaler from $280.00 to $250.00 and set an “outperform” rating for the company in a research report on Tuesday, March 10th. Thirty-four investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $214.33.
Zscaler Stock Up 1.7%
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 stock has a market capitalization of $20.40 billion, a PE ratio of -262.85, a PEG ratio of 78.06 and a beta of 0.97. The business has a 50 day moving average of $141.29 and a two-hundred day moving average of $171.66.
Zscaler (NASDAQ:ZS – Get Free Report) last issued its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, beating analysts’ consensus estimates of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The company had revenue of $850.48 million for the quarter, compared to the consensus estimate of $835.14 million. During the same quarter last year, the company earned $0.84 earnings per share. The firm’s revenue for the quarter was up 25.4% compared to the same quarter last year. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Analysts predict that Zscaler, Inc. will post 0.11 EPS for the current year.
Insider Activity
In other news, insider Adam Geller sold 2,817 shares of Zscaler stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $122.60, for a total value of $345,364.20. Following the transaction, the insider owned 42,314 shares of the company’s stock, valued at $5,187,696.40. The trade was a 6.24% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jagtar Singh Chaudhry sold 2,878 shares of the business’s stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $363,865.54. Following the transaction, the chief executive officer owned 343,038 shares of the company’s stock, valued at approximately $43,370,294.34. This trade represents a 0.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 12,644 shares of company stock valued at $1,587,627 over the last 90 days. 17.20% of the stock is currently owned by corporate insiders.
Institutional Investors Weigh In On Zscaler
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ZS. Binnacle Investments Inc purchased a new stake in shares of Zscaler during the third quarter worth about $25,000. Picton Mahoney Asset Management acquired a new stake in Zscaler in the 3rd quarter worth approximately $30,000. AlphaCentric Advisors LLC acquired a new stake in Zscaler in the 4th quarter worth approximately $29,000. University of Texas Texas AM Investment Management Co. purchased a new stake in Zscaler during the 4th quarter worth approximately $30,000. Finally, Mcguire Capital Advisors Inc. purchased a new stake in Zscaler during the 4th quarter worth approximately $32,000. 46.45% of the stock is currently owned by hedge funds and other institutional investors.
About Zscaler
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.
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