Zscaler, Inc. (NASDAQ:ZS – Get Free Report)’s stock price traded down 2.7% during trading on Thursday . The stock traded as low as $122.15 and last traded at $123.80. 2,312,053 shares traded hands during mid-day trading, a decline of 37% from the average daily volume of 3,684,192 shares. The stock had previously closed at $127.27.
More Zscaler News
Here are the key news stories impacting Zscaler this week:
- Positive Sentiment: Zscaler CEO Jay Chaudhry said AI is accelerating cybersecurity bug detection and creating a major opportunity for the company’s platform, reinforcing the bullish AI/security narrative around ZS. Zscaler CEO Jay Chaudhry says AI accelerates cybersecurity bug detection
- Positive Sentiment: Zscaler announced a multi-year partnership with Aston Martin Aramco Formula One Team, giving the company another high-profile customer win and showcasing demand for its Zero Trust security tools. Racing Innovation Meets Zero Trust: Aston Martin Aramco Formula One Team and Zscaler Redefine Speed and Security
- Positive Sentiment: Coverage highlighted Zscaler as one of the key beneficiaries of enterprise AI security spending, which may support investor confidence in future growth. Zscaler (ZS) Expands Project AI-Guardian to Provide Unified Security for Enterprise AI Ecosystems
- Neutral Sentiment: Several reports noted that ZS has risen modestly since its last earnings report, reflecting steady post-earnings sentiment rather than a major catalyst. Why Is Zscaler (ZS) Up 0.7% Since Last Earnings Report?
- Neutral Sentiment: Insider Adam Geller sold shares under a pre-arranged 10b5-1 plan; the sale may weigh on sentiment, but it does not necessarily signal a change in outlook. SEC Form 4 Filing
- Negative Sentiment: Pomerantz LLP launched an investor investigation into Zscaler, adding legal overhang that could pressure the stock. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Zscaler, Inc. – ZS
Analyst Ratings Changes
A number of analysts recently commented on ZS shares. Evercore set a $155.00 target price on Zscaler and gave the company an “in-line” rating in a research report on Wednesday, May 27th. Citizens Jmp cut their target price on Zscaler from $290.00 to $210.00 and set a “market outperform” rating for the company in a research note on Friday, May 1st. JPMorgan Chase & Co. cut their price target on shares of Zscaler from $250.00 to $205.00 and set an “overweight” rating for the company in a research note on Wednesday, May 27th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $200.00 target price on shares of Zscaler in a report on Wednesday, June 10th. Finally, Oppenheimer lowered their price objective on shares of Zscaler from $280.00 to $250.00 and set an “outperform” rating for the company in a research note on Tuesday, March 10th. Thirty-four 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. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $213.97.
Zscaler Stock Down 2.7%
The business has a 50-day moving average price of $141.54 and a 200 day moving average price of $170.03. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72. The stock has a market capitalization of $20.02 billion, a P/E ratio of -257.91, a P/E/G ratio of 78.89 and a beta of 0.97.
Zscaler (NASDAQ:ZS – Get Free Report) last announced 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 net margin of 2.44% and a negative return on equity of 0.37%. The company had revenue of $850.48 million during the quarter, compared to analyst estimates of $835.14 million. During the same quarter last year, the business posted $0.84 EPS. The firm’s revenue for the quarter 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. On average, equities analysts expect that Zscaler, Inc. will post 0.11 EPS for the current fiscal year.
Insider Transactions at Zscaler
In related news, insider Robert Schlossman sold 3,146 shares of Zscaler stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $397,748.78. Following the completion of the sale, the insider owned 69,366 shares of the company’s stock, valued at $8,769,943.38. The trade was a 4.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Jagtar Singh Chaudhry sold 2,878 shares of the business’s stock in a transaction on Tuesday, June 16th. The shares were 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 $43,370,294.34. This represents a 0.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 12,644 shares of company stock valued at $1,587,627. 17.20% of the stock is owned by company insiders.
Institutional Trading of Zscaler
A number of hedge funds and other institutional investors have recently made changes to their positions in ZS. Binnacle Investments Inc acquired a new stake in shares of Zscaler during the third quarter worth about $25,000. Picton Mahoney Asset Management acquired a new position in shares of Zscaler during the third quarter worth $30,000. AlphaCentric Advisors LLC acquired a new position in shares of Zscaler during the 4th quarter worth about $29,000. University of Texas Texas AM Investment Management Co. purchased a new position in Zscaler in the fourth quarter valued at approximately $30,000. Finally, Mcguire Capital Advisors Inc. acquired a new position in shares of Zscaler in the 4th quarter valued at $32,000. 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.
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