Zscaler (NASDAQ:ZS) Reaches New 52-Week Low Following Analyst Downgrade

Zscaler, Inc. (NASDAQ:ZS) shares reached a new 52-week low during trading on Friday after JPMorgan Chase & Co. lowered their price target on the stock from $354.00 to $267.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Zscaler traded as low as $161.50 and last traded at $160.5010, with a volume of 2105144 shares traded. The stock had previously closed at $168.99.

Several other research analysts have also recently commented on the company. Sanford C. Bernstein raised shares of Zscaler from a “market perform” rating to an “outperform” rating and set a $228.00 price target on the stock in a research report on Friday, February 13th. Bank of America lowered their price objective on shares of Zscaler from $355.00 to $335.00 and set a “buy” rating on the stock in a research note on Wednesday, November 26th. Piper Sandler cut their target price on shares of Zscaler from $280.00 to $260.00 and set a “neutral” rating for the company in a research note on Monday, January 5th. Royal Bank Of Canada reiterated an “outperform” rating and set a $250.00 price target on shares of Zscaler in a report on Wednesday, February 11th. Finally, Citigroup dropped their price objective on Zscaler from $350.00 to $305.00 and set a “buy” rating on the stock in a research note on Tuesday, January 13th. One research analyst has rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $304.78.

Insider Buying and Selling

In related news, CEO Jagtar Singh Chaudhry sold 2,843 shares of Zscaler stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total value of $656,221.26. Following the transaction, the chief executive officer owned 347,857 shares in the company, valued at $80,292,352.74. This trade represents a 0.81% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Adam Geller sold 2,060 shares of Zscaler stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $475,489.20. Following the completion of the transaction, the insider owned 52,148 shares in the company, valued at approximately $12,036,801.36. This represents a 3.80% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 19,350 shares of company stock valued at $4,471,509 in the last three months. 17.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. Groupama Asset Managment increased its holdings in Zscaler by 76,352.6% in the 3rd quarter. Groupama Asset Managment now owns 4,750,000 shares of the company’s stock worth $1,423,385,000 after buying an additional 4,743,787 shares in the last quarter. Federated Hermes Inc. boosted its stake in shares of Zscaler by 314.0% in the 2nd quarter. Federated Hermes Inc. now owns 1,171,983 shares of the company’s stock worth $367,932,000 after buying an additional 888,888 shares during the last quarter. Vanguard Group Inc. grew its holdings in shares of Zscaler by 8.3% in the second quarter. Vanguard Group Inc. now owns 10,715,132 shares of the company’s stock worth $3,363,909,000 after acquiring an additional 824,626 shares during the period. Price T Rowe Associates Inc. MD increased its position in Zscaler by 43.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company’s stock valued at $578,576,000 after acquiring an additional 777,414 shares during the last quarter. Finally, AQR Capital Management LLC increased its position in Zscaler by 61.8% during the third quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company’s stock valued at $576,083,000 after acquiring an additional 741,756 shares during the last quarter. 46.45% of the stock is currently owned by institutional investors.

Zscaler Stock Down 4.9%

The company’s 50 day moving average price is $208.26 and its two-hundred day moving average price is $260.39. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 0.86. The firm has a market cap of $25.62 billion, a PE ratio of -619.25, a PEG ratio of 350.89 and a beta of 1.02.

Zscaler (NASDAQ:ZS) last released its earnings results on Tuesday, November 25th. The company reported $0.96 earnings per share for the quarter, beating analysts’ consensus estimates of $0.85 by $0.11. The company had revenue of $788.11 million for the quarter, compared to analysts’ expectations of $773.86 million. Zscaler had a negative net margin of 1.45% and a negative return on equity of 0.12%. Zscaler’s revenue for the quarter was up 25.5% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.77 EPS. Zscaler has set its FY 2026 guidance at 3.780-3.820 EPS and its Q2 2026 guidance at 0.890-0.900 EPS. On average, equities research analysts expect that Zscaler, Inc. will post -0.1 EPS for the current fiscal year.

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.