Zscaler (NASDAQ:ZS) Stock Price Up 1.7% – Time to Buy?

Zscaler, Inc. (NASDAQ:ZS)’s share price shot up 1.7% during mid-day trading on Tuesday . The stock traded as high as $129.42 and last traded at $126.17. Approximately 2,335,476 shares were traded during trading, a decline of 37% from the average session volume of 3,702,261 shares. The stock had previously closed at $124.06.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler announced a new multi-year partnership with Aston Martin Aramco Formula One™ Team, which should boost its brand visibility and highlights demand for its Zero Trust cybersecurity platform in a high-profile, data-intensive environment. Racing Innovation Meets Zero Trust: Aston Martin Aramco Formula One Team and Zscaler Redefine Speed and Security
• Positive Sentiment: CEO Jay Chaudhry’s recent comments framing AI as a major cybersecurity opportunity may support investor confidence in Zscaler’s long-term growth story, especially as the company positions its platform around AI-era security needs. Zscaler CEO Jay Chaudhry says AI accelerates cybersecurity bug detection
• Positive Sentiment: Another report highlighted Zscaler’s expanding AI security strategy, including Project AI-Guardian, reinforcing the company’s relevance in enterprise AI protection. Zscaler (ZS) Expands Project AI-Guardian to Provide Unified Security for Enterprise AI Ecosystems
• Neutral Sentiment: Coverage noting Zscaler is up modestly since its last earnings report suggests the market still sees some post-earnings support, but it does not appear to be a major new catalyst. Why Is Zscaler (ZS) Up 0.7% Since Last Earnings Report?
• Neutral Sentiment: Insider Adam Geller sold shares under a pre-arranged 10b5-1 plan, which is routine but can still slightly weigh on sentiment. SEC Form 4 Filing
• Negative Sentiment: Pomerantz LLP said it is investigating claims on behalf of Zscaler investors, creating a legal headline that could add uncertainty and pressure the stock. INVESTOR ALERT: Pomerantz Law Firm Investigates Claim On Behalf of Investors of Zscaler, Inc. – ZS

Wall Street Analysts Forecast Growth

ZS has been the topic of a number of research reports. Zacks Research upgraded shares of Zscaler from a “strong sell” rating to a “hold” rating in a report on Wednesday, May 27th. Canaccord Genuity Group restated a “buy” rating and set a $210.00 price objective on shares of Zscaler in a research report on Thursday, June 11th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $200.00 target price on shares of Zscaler in a report on Wednesday, June 10th. Royal Bank Of Canada reiterated an “outperform” rating and issued a $200.00 target price on shares of Zscaler in a research report on Wednesday, June 10th. Finally, The Goldman Sachs Group reissued a “neutral” rating and set a $179.00 price target on shares of Zscaler in a research note on Wednesday, May 27th. Thirty-four equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $213.97.

Zscaler Stock Down 2.8%

The firm has a market capitalization of $20.01 billion, a PE ratio of -258.01, a PEG ratio of 78.89 and a beta of 0.97. The business’s 50 day simple moving average is $141.54 and its 200 day simple moving average is $170.03. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72.

Zscaler (NASDAQ:ZS) last announced its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $850.48 million for the quarter, compared to analysts’ expectations of $835.14 million. During the same period in the prior year, the company earned $0.84 EPS. The business’s 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, equities research analysts forecast that Zscaler, Inc. will post 0.11 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Adam Geller sold 2,817 shares of the firm’s stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $122.60, for a total value of $345,364.20. Following the completion of the sale, the insider directly owned 42,314 shares of the company’s stock, valued at $5,187,696.40. This trade represents a 6.24% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 1,686 shares of Zscaler stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total value of $213,160.98. Following the completion of the transaction, the chief financial officer owned 44,901 shares of the company’s stock, valued at approximately $5,676,833.43. This trade represents a 3.62% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 12,644 shares of company stock valued at $1,587,627. 17.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Binnacle Investments Inc bought a new stake in shares of Zscaler in the 3rd quarter worth about $25,000. AlphaCentric Advisors LLC bought a new position in Zscaler during the 4th quarter valued at about $29,000. Picton Mahoney Asset Management bought a new position in Zscaler during the 3rd quarter valued at about $30,000. University of Texas Texas AM Investment Management Co. purchased a new stake in Zscaler in the 4th quarter worth about $30,000. Finally, Mcguire Capital Advisors Inc. purchased a new stake in Zscaler in the 4th quarter worth about $32,000. Institutional investors own 46.45% of the company’s stock.

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.