Key Points
- Director sale: Zscaler Director James Beer sold 177 shares on March 18 at an average price of $153.53 for roughly $27,175, reducing his stake by 3.88% to 4,384 shares, per an SEC Form 4 filing.
- Market reaction and sentiment: ZS shares fell about 2.6% to $151.33 with unusually heavy put‑option activity and a cluster of insider sales weighing on the stock, while several analysts trimmed price targets even as the consensus rating remains a “Moderate Buy.”
- Recent results and guidance: Zscaler beat quarterly estimates with $1.01 EPS (vs. $0.89 est.) and $815.75M revenue (up 25.9% YoY), and set Q3 2026 guidance of 1.000–1.010 EPS and FY2026 guidance of 3.990–4.020 EPS.
Zscaler, Inc. (NASDAQ:ZS - Get Free Report) Director James Beer sold 177 shares of the company's stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total value of $27,174.81. Following the completion of the sale, the director directly owned 4,384 shares of the company's stock, valued at $673,075.52. The trade was a 3.88% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink.
Zscaler Stock Down 2.6%
Shares of ZS stock traded down $4.07 during trading hours on Friday, reaching $151.33. The company had a trading volume of 319,283 shares, compared to its average volume of 2,611,698. The company has a market capitalization of $24.33 billion, a P/E ratio of -359.94 and a beta of 1.07. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.90 and a current ratio of 1.90. Zscaler, Inc. has a twelve month low of $140.56 and a twelve month high of $336.99. The stock's fifty day simple moving average is $179.18 and its 200 day simple moving average is $243.74.
Zscaler (NASDAQ:ZS - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The company reported $1.01 EPS for the quarter, topping the consensus estimate of $0.89 by $0.12. The firm had revenue of $815.75 million for the quarter, compared to analyst estimates of $798.92 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.Zscaler's revenue for the quarter was up 25.9% on a year-over-year basis. During the same period in the previous year, the company posted $0.78 EPS. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. As a group, sell-side analysts expect that Zscaler, Inc. will post -0.1 earnings per share for the current fiscal year.
Zscaler News Roundup
Here are the key news stories impacting Zscaler this week:
- Positive Sentiment: Zscaler has an average analyst recommendation of “Moderate Buy,” which supports longer‑term demand for the shares. Read More.
- Positive Sentiment: Strategic partnerships and product expansion — Zscaler and Bharti Airtel launched an AI & Cyber Threat Research Center in APAC, and Zscaler expanded global data‑sovereignty controls on its Zero Trust Exchange, both of which can help win regulated customers and broaden the addressable market. Read More. Read More.
- Neutral Sentiment: Institutional ownership remains significant and some funds have been adding positions historically; this can stabilize shares even amid short‑term flows (institutional detail summarized in recent filings). No single institutional event appears to be driving today’s move.
- Negative Sentiment: Unusually heavy put‑option activity — roughly 47,656 puts traded (~74% above average), signaling elevated bearish positioning and potential for amplified downside volatility. Read More.
- Negative Sentiment: Cluster of insider sales by senior executives (CEO, CFO, EVP and other insiders sold shares mid‑March). Multiple Form 4 filings show meaningful collective reductions, which investors often interpret as a near‑term negative signal. Read More.
- Negative Sentiment: Analyst price‑target trims and competitive pressure — Oppenheimer recently lowered its price target, and industry comparisons (e.g., CrowdStrike) highlight faster ARR/margin momentum elsewhere and margin pressure from Zscaler’s newer AI offerings. Those views weigh on near‑term valuation. Read More. Read More.
Analyst Ratings Changes
ZS has been the subject of several analyst reports. BMO Capital Markets decreased their target price on shares of Zscaler from $315.00 to $210.00 and set an "outperform" rating for the company in a research note on Friday, February 27th. KeyCorp dropped their price target on shares of Zscaler from $300.00 to $250.00 and set an "overweight" rating on the stock in a research note on Tuesday, February 17th. Zacks Research lowered shares of Zscaler from a "hold" rating to a "strong sell" rating in a report on Thursday, February 26th. Loop Capital set a $320.00 price objective on shares of Zscaler in a research report on Thursday, December 11th. Finally, Capital One Financial set a $320.00 target price on Zscaler and gave the company an "overweight" rating in a research note on Wednesday, November 26th. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Zscaler currently has an average rating of "Moderate Buy" and a consensus price target of $267.13.
View Our Latest Report on ZS
Hedge Funds Weigh In On Zscaler
Large investors have recently added to or reduced their stakes in the company. Bessemer Group Inc. lifted its position in shares of Zscaler by 3.2% in the 3rd quarter. Bessemer Group Inc. now owns 1,021 shares of the company's stock worth $306,000 after buying an additional 32 shares during the last quarter. Cox Capital Mgt LLC raised its stake in Zscaler by 0.6% during the third quarter. Cox Capital Mgt LLC now owns 5,576 shares of the company's stock worth $1,671,000 after acquiring an additional 33 shares during the period. Brookstone Capital Management lifted its holdings in Zscaler by 3.7% in the third quarter. Brookstone Capital Management now owns 936 shares of the company's stock worth $280,000 after acquiring an additional 33 shares during the last quarter. Wedbush Securities Inc. boosted its stake in Zscaler by 0.7% in the third quarter. Wedbush Securities Inc. now owns 5,129 shares of the company's stock valued at $1,537,000 after acquiring an additional 34 shares during the period. Finally, Goldstream Capital Management Ltd grew its holdings in shares of Zscaler by 0.3% during the third quarter. Goldstream Capital Management Ltd now owns 12,450 shares of the company's stock valued at $3,731,000 after purchasing an additional 34 shares during the last quarter. 46.45% of the stock is currently owned by institutional investors.
About Zscaler
(
Get Free Report)
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.
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