Zscaler (NASDAQ:ZS) Shares Down 2.4% – Should You Sell?

Zscaler, Inc. (NASDAQ:ZS) shares traded down 2.4% during mid-day trading on Tuesday . The stock traded as low as $123.61 and last traded at $127.23. 3,805,695 shares were traded during trading, an increase of 5% from the average session volume of 3,608,208 shares. The stock had previously closed at $130.42.

Analyst Ratings Changes

Several equities research analysts have issued reports on the stock. Citigroup reiterated a “market outperform” rating on shares of Zscaler in a research note on Wednesday, May 27th. Canaccord Genuity Group reissued a “buy” rating and set a $210.00 target price on shares of Zscaler in a research report on Thursday, June 11th. Rosenblatt Securities reissued a “buy” rating and set a $200.00 target price on shares of Zscaler in a research report on Wednesday, June 10th. KeyCorp boosted their target price on shares of Zscaler from $160.00 to $190.00 and gave the stock an “overweight” rating in a research report on Monday, May 18th. Finally, BMO Capital Markets reduced their target price on shares of Zscaler from $210.00 to $178.00 and set an “outperform” rating on the stock in a research report on Wednesday, May 27th. Thirty-four investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $214.33.

Zscaler Stock Down 2.4%

The stock has a market capitalization of $20.57 billion, a price-to-earnings ratio of -265.06, a PEG ratio of 80.98 and a beta of 0.97. The firm’s fifty day moving average is $142.38 and its 200-day moving average is $175.99. 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 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.01 by $0.07. The firm had revenue of $850.48 million for the quarter, compared to analysts’ expectations of $835.14 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The firm’s quarterly revenue was up 25.4% on a year-over-year basis. During the same period in the prior year, the company posted $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 predict that Zscaler, Inc. will post 0.11 earnings per share for the current year.

Insider Buying and Selling at Zscaler

In related news, insider Adam Geller sold 2,094 shares of the company’s stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total value of $321,491.82. Following the sale, the insider directly owned 46,949 shares of the company’s stock, valued at $7,208,079.97. This represents a 4.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director James A. Beer sold 177 shares of the company’s stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total transaction of $27,174.81. Following the completion of the sale, the director directly owned 4,384 shares in the company, valued at $673,075.52. This represents a 3.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

Institutional investors have recently added to or reduced their stakes in the stock. Westpac Banking Corp lifted its stake in Zscaler by 919.0% during the third quarter. Westpac Banking Corp now owns 9,986 shares of the company’s stock valued at $2,992,000 after buying an additional 9,006 shares in the last quarter. Korea Investment CORP lifted its stake in Zscaler by 24.0% during the third quarter. Korea Investment CORP now owns 98,370 shares of the company’s stock valued at $29,478,000 after buying an additional 19,026 shares in the last quarter. Qsemble Capital Management LP lifted its stake in Zscaler by 105.5% during the fourth quarter. Qsemble Capital Management LP now owns 15,773 shares of the company’s stock valued at $3,548,000 after buying an additional 8,099 shares in the last quarter. Oxbow Advisors LLC purchased a new stake in Zscaler during the fourth quarter valued at about $2,939,000. Finally, Vinva Investment Management Ltd lifted its stake in Zscaler by 136.1% during the third quarter. Vinva Investment Management Ltd now owns 11,347 shares of the company’s stock valued at $3,400,000 after buying an additional 6,541 shares in the last quarter. 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.