Zscaler (NASDAQ:ZS) Stock Price Up 6.8% – Should You Buy?

Zscaler, Inc. (NASDAQ:ZS) was up 6.8% during mid-day trading on Friday . The stock traded as high as $132.54 and last traded at $132.26. Approximately 3,662,766 shares traded hands during trading, a decline of 1% from the average daily volume of 3,684,102 shares. The stock had previously closed at $123.80.

Key Stories Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler announced a multi-year partnership with the Aston Martin Aramco Formula One Team, which will use Zscaler’s Zero Trust Exchange platform to secure sensitive design, strategy and telemetry data. The deal highlights Zscaler’s relevance in mission-critical cybersecurity and may boost confidence in its enterprise pipeline. Article: Racing Innovation Meets Zero Trust: Aston Martin Aramco Formula One™ Team and Zscaler Redefine Speed and Security
• Positive Sentiment: CEO comments across several interviews emphasized that AI is creating a major new opportunity for cybersecurity and could improve bug detection, reinforcing the long-term growth narrative for Zscaler as AI drives more demand for cloud security. Article: AI creates biggest cybersecurity opportunity in years: Zscaler CEO
• Neutral Sentiment: Recent coverage noted that Zscaler has risen modestly since its last earnings report, reflecting ongoing investor interest after results and guidance that already showed solid revenue growth. Article: Why Is Zscaler (ZS) Up 0.7% Since Last Earnings Report?
• Neutral Sentiment: One headline reported a large increase in short interest, but the figures shown were zero shares and zero days to cover, suggesting the report is likely not materially informative for investors.
• Negative Sentiment: Pomerantz LLP said it is investigating claims on behalf of Zscaler investors, which can create overhang and add caution around the stock even if no wrongdoing has been established. Article: INVESTOR ALERT: Pomerantz Law Firm Investigates Claim On Behalf of Investors of Zscaler, Inc. – ZS
• Negative Sentiment: A separate report noted insider selling by Adam Geller, which may weigh on sentiment if investors view it as a lack of near-term upside confidence. Article: Adam Geller Sells 2,817 Shares of Zscaler (NASDAQ:ZS) Stock

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the company. JPMorgan Chase & Co. decreased their target price on Zscaler from $250.00 to $205.00 and set an “overweight” rating for the company in a research note on Wednesday, May 27th. Stifel Nicolaus reduced their price objective on Zscaler from $180.00 to $175.00 and set a “buy” rating for the company in a research report on Wednesday, May 27th. Truist Financial set a $210.00 price objective on Zscaler in a research note on Wednesday, May 27th. Guggenheim reaffirmed a “buy” rating and issued a $214.00 target price on shares of Zscaler in a research report on Wednesday, June 10th. Finally, Citizens Jmp cut their target price on Zscaler from $290.00 to $210.00 and set a “market outperform” rating on the stock in a research note on Friday, May 1st. Thirty-four investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $213.97.

Zscaler Stock Performance

The firm’s fifty day simple moving average is $141.56 and its 200 day simple moving average is $169.19. The company has a market capitalization of $21.39 billion, a price-to-earnings ratio of -275.54, a PEG ratio of 79.57 and a beta of 0.97. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.86 and a quick ratio of 1.86.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, topping the consensus estimate 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 business had revenue of $850.48 million during the quarter, compared to analysts’ expectations of $835.14 million. During the same period last year, the company posted $0.84 earnings per share. The firm’s quarterly revenue 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. On average, sell-side analysts forecast that Zscaler, Inc. will post 0.11 EPS for the current year.

Insiders Place Their Bets

In other Zscaler news, CFO Kevin Rubin sold 3,000 shares of the firm’s stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $124.22, for a total value of $372,660.00. Following the completion of the sale, the chief financial officer owned 41,901 shares in the company, valued at approximately $5,204,942.22. This trade represents a 6.68% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jagtar Singh Chaudhry sold 2,878 shares of the company’s stock in a transaction dated 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 in the company, valued at approximately $43,370,294.34. The trade was a 0.83% decrease in their ownership of the stock. 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 sold a total of 15,644 shares of company stock valued at $1,960,287 over the last ninety days. 17.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Zscaler

A number of hedge funds have recently modified their holdings of the business. Groupama Asset Managment boosted its position in Zscaler by 76,352.6% during the 3rd quarter. Groupama Asset Managment now owns 4,750,000 shares of the company’s stock worth $1,423,385,000 after acquiring an additional 4,743,787 shares during the last quarter. First Trust Advisors LP lifted its position in shares of Zscaler by 36.2% in the first quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock worth $493,635,000 after purchasing an additional 935,781 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its holdings 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 worth $578,576,000 after purchasing an additional 777,414 shares during the last quarter. AQR Capital Management LLC grew its position in Zscaler by 61.8% in the third quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company’s stock valued at $576,083,000 after purchasing an additional 741,756 shares in the last quarter. Finally, Pictet Asset Management Holding SA increased its stake in Zscaler by 52.5% in the 1st quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company’s stock valued at $269,285,000 after buying an additional 661,413 shares during the last quarter. 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.