Zscaler (NASDAQ:ZS) Shares Down 3.3% – Here’s What Happened

Zscaler, Inc. (NASDAQ:ZS)’s stock price fell 3.3% during mid-day trading on Friday . The company traded as low as $128.98 and last traded at $130.78. 4,562,825 shares changed hands during trading, an increase of 27% from the average session volume of 3,586,887 shares. The stock had previously closed at $135.26.

Analysts Set New Price Targets

A number of research firms recently issued reports on ZS. Barclays reduced their price objective on Zscaler from $180.00 to $170.00 and set an “overweight” rating for the company in a research report 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 report on Wednesday, May 27th. BTIG Research reiterated a “neutral” rating on shares of Zscaler in a research report on Thursday, April 9th. Citigroup reiterated a “market outperform” rating on shares of Zscaler in a research report on Wednesday, May 27th. Finally, Mizuho reduced their price target on Zscaler from $210.00 to $185.00 and set an “outperform” rating for the company in a research report on Wednesday, May 27th. Thirty-three analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $216.03.

Zscaler Stock Down 3.3%

The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86. The stock has a 50 day moving average price of $143.79 and a 200 day moving average price of $183.80. The company has a market cap of $21.15 billion, a P/E ratio of -272.45 and a beta of 0.97.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, topping 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 company had revenue of $850.48 million for the quarter, compared to the consensus estimate of $835.14 million. During the same quarter in the previous year, the business earned $0.84 EPS. The company’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. Research analysts expect that Zscaler, Inc. will post -0.03 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Robert Schlossman sold 2,263 shares of the business’s stock in a transaction on 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 owned 72,390 shares of the company’s stock, valued at approximately $11,335,550.10. The trade was a 3.03% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Kevin Rubin sold 1,682 shares of the business’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $263,384.38. Following the completion of the sale, the chief financial officer directly owned 46,479 shares in the company, valued at $7,278,146.61. This represents a 3.49% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 12,130 shares of company stock worth $1,892,487. 17.20% of the stock is owned by corporate insiders.

Institutional Trading of Zscaler

A number of hedge funds and other institutional investors have recently modified their holdings of ZS. Groupama Asset Managment raised its position in shares of Zscaler by 76,352.6% during the third quarter. Groupama Asset Managment now owns 4,750,000 shares of the company’s stock worth $1,423,385,000 after purchasing an additional 4,743,787 shares during the period. First Trust Advisors LP raised its position in shares of Zscaler by 36.2% during 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 during the period. Price T Rowe Associates Inc. MD raised its position in shares of 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 period. AQR Capital Management LLC raised its position in shares of Zscaler by 61.8% during the third quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company’s stock worth $576,083,000 after purchasing an additional 741,756 shares during the period. Finally, Pictet Asset Management Holding SA raised its position in shares of Zscaler by 52.5% during the first quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company’s stock worth $269,285,000 after purchasing an additional 661,413 shares during the period. Institutional investors 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.