Zscaler (NASDAQ:ZS) Trading Up 9.8% – Here’s Why

Shares of Zscaler, Inc. (NASDAQ:ZS) were up 9.8% during trading on Monday . The company traded as high as $153.54 and last traded at $153.4850. Approximately 2,287,115 shares changed hands during mid-day trading, a decline of 33% from the average daily volume of 3,397,417 shares. The stock had previously closed at $139.73.

Key Stories Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Guggenheim upgraded Zscaler to Buy and set a $214 target, suggesting meaningful upside after the recent pullback. Why Is Zscaler (ZS) Stock Soaring Today
• Positive Sentiment: Zscaler broke above its 50-day moving average, a technical signal that may indicate short-term bullish momentum. Zscaler (ZS) Recently Broke Out Above the 50-Day Moving Average
• Positive Sentiment: Analyst price-target data still implies roughly 25% upside, and earnings estimate revisions have been trending favorably. Wall Street Analysts Think Zscaler (ZS) Could Surge 25.28%
• Neutral Sentiment: Management discussed earnings, AI adoption, and the Symmetry Systems acquisition on a CFO interview, but this appears informational rather than a fresh market-moving announcement. Zscaler (ZS) CFO on Earnings, AI Opportunity in Cybersecurity & Symmetry Systems Acquisition
• Negative Sentiment: Two shareholder-law-firm investigations into possible securities-law claims may add legal overhang and keep some investors cautious. SHAREHOLDER ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Zscaler
• Negative Sentiment: Another securities-law investigation from Johnson Fistel could create additional headline risk. Zscaler, Inc. Shareholders Are Encouraged to Reach Out to Johnson Fistel

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. Oppenheimer reduced their price objective on Zscaler from $280.00 to $250.00 and set an “outperform” rating for the company in a research note on Tuesday, March 10th. Barclays reduced their price objective on Zscaler from $180.00 to $170.00 and set an “overweight” rating for the company in a research note on Wednesday, May 27th. UBS Group reduced their price objective on Zscaler from $260.00 to $225.00 and set a “buy” rating for the company in a research note on Wednesday, May 27th. The Goldman Sachs Group restated a “neutral” rating and issued a $179.00 price objective on shares of Zscaler in a research note on Wednesday, May 27th. Finally, BMO Capital Markets reduced their price objective on Zscaler from $210.00 to $178.00 and set an “outperform” rating for the company in a research note on Wednesday, May 27th. Thirty-three analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Zscaler presently has an average rating of “Moderate Buy” and a consensus target price of $216.03.

Zscaler Stock Performance

The stock has a market capitalization of $23.31 billion, a price-to-earnings ratio of -300.31 and a beta of 0.97. The firm has a fifty day moving average of $144.37 and a 200 day moving average of $187.40. 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 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. The firm had revenue of $850.48 million for the quarter, compared to analyst estimates of $835.14 million. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.Zscaler’s revenue for the quarter was up 25.4% compared to the same quarter last year. During the same period last year, the company earned $0.84 earnings per share. 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 anticipate that Zscaler, Inc. will post -0.03 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO Kevin Rubin sold 1,682 shares of the firm’s stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $263,384.38. Following the sale, the chief financial officer directly owned 46,479 shares of the company’s stock, valued at $7,278,146.61. This trade represents a 3.49% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Robert Schlossman sold 2,263 shares of the firm’s stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $354,363.17. Following the sale, the insider directly owned 72,390 shares in the company, valued at approximately $11,335,550.10. This trade represents a 3.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 12,130 shares of company stock valued at $1,892,487 over the last 90 days. Company insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. grew its holdings in Zscaler by 0.5% during the fourth quarter. Vanguard Group Inc. now owns 11,423,424 shares of the company’s stock worth $2,569,357,000 after acquiring an additional 55,521 shares during the period. Groupama Asset Managment grew its holdings in Zscaler by 76,352.6% in the third quarter. Groupama Asset Managment now owns 4,750,000 shares of the company’s stock valued at $1,423,385,000 after purchasing an additional 4,743,787 shares during the period. First Trust Advisors LP grew its holdings in Zscaler by 36.2% in the first quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock valued at $493,635,000 after purchasing an additional 935,781 shares during the period. Price T Rowe Associates Inc. MD grew its holdings in Zscaler by 43.3% in 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 purchasing an additional 777,414 shares during the period. Finally, State Street Corp grew its holdings in Zscaler by 3.4% in the fourth quarter. State Street Corp now owns 2,337,604 shares of the company’s stock valued at $525,774,000 after purchasing an additional 77,800 shares during the period. 46.45% of the stock is owned by institutional investors and hedge funds.

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.