Zscaler (NASDAQ:ZS) Stock Price Down 6.8% – Here’s What Happened

Posted by Brian Himes on Jun 5th, 2026

Zscaler, Inc. (NASDAQ:ZS – Get Free Report)’s share price fell 6.8% on Wednesday . The stock traded as low as $133.53 and last traded at $134.37. 7,627,205 shares changed hands during mid-day trading, an increase of 114% from the average session volume of 3,569,956 shares. The stock had previously closed at $144.15.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on ZS. B. Riley Financial cut their price target on Zscaler from $225.00 to $215.00 and set a “buy” rating on the stock in a research note on Wednesday, May 27th. Sanford C. Bernstein cut their target price on Zscaler from $228.00 to $224.00 and set an “outperform” rating on the stock in a research note on Wednesday, May 27th. Deutsche Bank Aktiengesellschaft cut their target price on Zscaler from $185.00 to $175.00 and set a “buy” rating on the stock in a research note on Wednesday, May 27th. Mizuho cut their target price on Zscaler from $210.00 to $185.00 and set an “outperform” rating on the stock in a research note on Wednesday, May 27th. Finally, Stifel Nicolaus cut their target price on Zscaler from $180.00 to $175.00 and set a “buy” rating on the stock in a research note 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 issued a Sell rating to the company’s stock. Based on data from MarketBeat, Zscaler currently has a consensus rating of “Moderate Buy” and an average target price of $216.03.

Read Our Latest Stock Report on Zscaler

Zscaler Trading Down 3.3%

The firm has a 50 day simple moving average of $143.79 and a 200 day simple moving average 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. The firm has a market capitalization of $21.15 billion, a PE ratio of -272.45 and a beta of 0.97.

Zscaler (NASDAQ:ZS – Get Free Report) last issued its earnings results on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, beating the consensus estimate of $1.01 by $0.07. The business had revenue of $850.48 million for the quarter, compared to the consensus estimate of $835.14 million. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The company’s revenue was up 25.4% compared to the same quarter last year. During the same period last year, the business posted $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. Equities analysts expect that Zscaler, Inc. will post -0.03 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Adam Geller sold 2,094 shares of the stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total transaction of $321,491.82. Following the transaction, the insider directly owned 46,949 shares of the company’s stock, valued at $7,208,079.97. This represents a 4.27% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Jagtar Singh Chaudhry sold 1,941 shares of the stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $303,941.19. Following the transaction, the chief executive officer directly owned 345,916 shares in the company, valued at $54,166,986.44. The trade was a 0.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 12,130 shares of company stock worth $1,892,487. Insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On Zscaler

Hedge funds and other institutional investors have recently modified their holdings of the company. Binnacle Investments Inc bought a new position in shares of Zscaler during the 3rd quarter valued at $25,000. AlphaCentric Advisors LLC bought a new position in shares of Zscaler during the 4th quarter valued at $29,000. Picton Mahoney Asset Management bought a new position in shares of Zscaler during the 3rd quarter valued at $30,000. University of Texas Texas AM Investment Management Co. bought a new position in shares of Zscaler during the 4th quarter valued at $30,000. Finally, Mcguire Capital Advisors Inc. bought a new position in shares of Zscaler during the 4th quarter valued at $32,000. 46.45% of the stock is owned by institutional investors.

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.