Zscaler (NASDAQ:ZS) Shares Up 2.7% – Time to Buy?

Posted by Francis Steltz on Jun 12th, 2026

Shares of Zscaler, Inc. (NASDAQ:ZS – Get Free Report) shot up 2.7% during mid-day trading on Friday . The stock traded as high as $130.00 and last traded at $129.52. 4,749,177 shares were traded during mid-day trading, an increase of 31% from the average session volume of 3,613,499 shares. The stock had previously closed at $126.11.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

Positive Sentiment: Stephens reaffirmed its Overweight rating on Zscaler and set a $200 price target, implying substantial upside from current levels. Stephens reiterates Overweight on Zscaler
Positive Sentiment: Canaccord Genuity also reiterated a Buy rating with a $210 price target, reinforcing the view that analysts still see recovery potential in Zscaler’s stock. Canaccord reiterates Buy on Zscaler
Positive Sentiment: Zscaler announced expanded Zero Trust SASE and AI-focused security capabilities, including new tools aimed at protecting autonomous AI agents, endpoints, B2B partners, and Kubernetes environments. That keeps the company positioned as an AI-security beneficiary. Zscaler bets on AI agent security
Positive Sentiment: The company is also emphasizing its role in securing distributed AI environments, which could help support future bookings and growth narrative. Zscaler expands Zero Trust SASE solution
Neutral Sentiment: Zscaler has been one of the most searched names on Zacks, reflecting elevated trader interest rather than a clearly new fundamental catalyst. Zscaler attracting investor attention
Neutral Sentiment: Investor focus also remains on the company’s recent presentation and management commentary around AI opportunities and partner-led growth, but these items are more informational than market-moving on their own. Zscaler presents at Zenith-live-2026
Negative Sentiment: Sentiment is still pressured by Zscaler’s weak share-price performance and concerns that its forward guidance implies slower growth, which has kept the stock near its lows. Zscaler trades near 52-week low
Negative Sentiment: A shareholder investigation announced by the Schall Law Firm is another overhang, as it raises uncertainty around possible securities-law claims. Zscaler fraud investigation

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on ZS shares. TD Cowen reiterated a “buy” rating on shares of Zscaler in a report on Wednesday, May 27th. Rosenblatt Securities restated a “buy” rating and set a $200.00 target price on shares of Zscaler in a research report on Wednesday. Scotiabank lowered their target price on Zscaler from $190.00 to $175.00 and set a “sector outperform” rating for the company in a report on Wednesday, May 27th. B. Riley Financial dropped 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. Finally, BMO Capital Markets cut their price target on Zscaler from $210.00 to $178.00 and set an “outperform” rating on the stock in a report on Wednesday, May 27th. Thirty-four investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $214.33.

Get Our Latest Stock Report on Zscaler

Zscaler Trading Up 2.7%

The business has a 50 day moving average of $142.69 and a two-hundred day moving average of $178.18. The firm has a market capitalization of $20.94 billion, a price-to-earnings ratio of -269.83, a P/E/G ratio of 77.99 and a beta of 0.97. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86.

Zscaler (NASDAQ:ZS – Get Free Report) last announced its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 EPS 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 firm had revenue of $850.48 million during the quarter, compared to analysts’ expectations of $835.14 million. During the same quarter last year, the firm posted $0.84 earnings per share. The company’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. Equities analysts predict that Zscaler, Inc. will post 0.11 EPS for the current year.

Insider Buying and Selling at Zscaler

In other Zscaler news, insider Robert Schlossman sold 2,263 shares of the company’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 transaction, the insider owned 72,390 shares in the company, valued at approximately $11,335,550.10. This represents a 3.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Raj Judge sold 2,488 shares of Zscaler stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $389,595.92. Following the transaction, the executive vice president owned 67,906 shares of the company’s stock, valued at $10,633,400.54. This represents a 3.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 12,130 shares of company stock worth $1,892,487 in the last ninety days. 17.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Zscaler

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Bessemer Group Inc. lifted its holdings in shares of Zscaler by 3.2% in the third quarter. Bessemer Group Inc. now owns 1,021 shares of the company’s stock valued at $306,000 after purchasing an additional 32 shares in the last quarter. Wedbush Securities Inc. raised its position 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 last quarter. Goldstream Capital Management Ltd lifted its stake in Zscaler by 0.3% during the 3rd quarter. Goldstream Capital Management Ltd now owns 12,450 shares of the company’s stock valued at $3,731,000 after acquiring an additional 34 shares in the last quarter. Kentucky Retirement Systems Insurance Trust Fund boosted its holdings in Zscaler by 1.4% during the 3rd quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 2,569 shares of the company’s stock worth $770,000 after acquiring an additional 36 shares during the last quarter. Finally, Advisor OS LLC boosted its holdings in Zscaler by 4.6% during the 3rd quarter. Advisor OS LLC now owns 879 shares of the company’s stock worth $263,000 after acquiring an additional 39 shares during the last quarter. 46.45% of the stock is owned by institutional investors.

About Zscaler

(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.