Zscaler (NASDAQ:ZS) Shares Down 1.2% – What’s Next?

Zscaler, Inc. (NASDAQ:ZS) shares were down 1.2% during trading on Monday . The stock traded as low as $127.74 and last traded at $129.25. Approximately 3,436,509 shares changed hands during mid-day trading, a decline of 4% from the average daily volume of 3,587,286 shares. The stock had previously closed at $130.78.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on ZS. JPMorgan Chase & Co. lowered their price target on Zscaler from $250.00 to $205.00 and set an “overweight” rating on the stock in a report on Wednesday, May 27th. Guggenheim upgraded shares of Zscaler from a “neutral” rating to a “buy” rating and set a $214.00 target price for the company in a research report on Monday, June 1st. Stifel Nicolaus lowered their target price on shares of Zscaler from $180.00 to $175.00 and set a “buy” rating on the stock in a research note on Wednesday, May 27th. Citizens Jmp reduced their price target on shares of Zscaler from $290.00 to $210.00 and set a “market outperform” rating for the company in a research note on Friday, May 1st. Finally, Canaccord Genuity Group lowered their price objective on shares of Zscaler from $275.00 to $210.00 and set a “buy” rating on the stock in a research note on Wednesday, May 27th. Thirty-three equities research 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. According to data from MarketBeat.com, Zscaler has a consensus rating of “Moderate Buy” and an average target price of $216.03.

Zscaler Price Performance

The company has a market cap of $20.90 billion, a price-to-earnings ratio of -269.27 and a beta of 0.97. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72. The business has a 50-day moving average price of $143.61 and a 200 day moving average price of $182.64.

Zscaler (NASDAQ:ZS) last announced its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share (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 analyst estimates of $835.14 million. During the same period in the previous year, the firm earned $0.84 earnings per share. Zscaler’s revenue for the quarter 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. As a group, research analysts expect that Zscaler, Inc. will post -0.03 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Adam Geller sold 2,094 shares of the business’s stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total transaction of $321,491.82. Following the sale, the insider owned 46,949 shares in the company, valued at $7,208,079.97. The trade was a 4.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Jagtar Singh Chaudhry sold 1,941 shares of the company’s stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $303,941.19. Following the completion of the sale, the chief executive officer owned 345,916 shares of the company’s stock, valued at approximately $54,166,986.44. This trade represents a 0.56% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 12,130 shares of company stock valued at $1,892,487 over the last 90 days. 17.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of ZS. Integrated Wealth Concepts LLC grew its holdings in shares of Zscaler by 19.9% during the 1st quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company’s stock valued at $285,000 after acquiring an additional 239 shares in the last quarter. NewEdge Advisors LLC lifted its holdings in Zscaler by 8.2% in the 1st quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock worth $972,000 after purchasing an additional 370 shares during the last quarter. Empowered Funds LLC boosted its holdings in shares of Zscaler by 9.2% during the 1st quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock worth $558,000 after buying an additional 238 shares during the period. Sivia Capital Partners LLC acquired a new stake in shares of Zscaler in the second quarter valued at about $252,000. Finally, Jump Financial LLC bought a new position in shares of Zscaler in the second quarter worth about $3,019,000. 46.45% of the stock is owned by institutional investors and hedge funds.

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.