Key Points
- Zscaler CEO Jagtar Singh Chaudhry sold 2,878 shares on June 16 for about $363,865 at an average price of $126.43. The company said the sale was made to cover tax withholding obligations tied to vesting equity awards.
- After the transaction, Chaudhry still owned 343,038 shares valued at roughly $43.37 million, reducing his stake by only 0.83%.
- Zscaler recently beat quarterly earnings and revenue expectations, with revenue up 25.4% year over year, while analysts remain broadly positive with a Moderate Buy consensus and an average price target of $214.33.
Zscaler, Inc. (NASDAQ:ZS - Get Free Report) Director James Beer sold 177 shares of the stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $125.50, for a total transaction of $22,213.50. Following the sale, the director directly owned 4,207 shares of the company's stock, valued at $527,978.50. This represents a 4.04% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Zscaler Stock Down 2.2%
Shares of ZS stock opened at $124.38 on Thursday. The firm has a fifty day moving average of $141.85 and a 200-day moving average of $174.22. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. Zscaler, Inc. has a 12-month low of $114.63 and a 12-month high of $336.99. The company has a market capitalization of $20.11 billion, a price-to-earnings ratio of -259.12, a P/E/G ratio of 79.55 and a beta of 0.97.
Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, topping 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 company had revenue of $850.48 million during the quarter, compared to the consensus estimate of $835.14 million. During the same quarter in the prior year, the firm earned $0.84 earnings per share. The firm'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. As a group, equities research analysts predict that Zscaler, Inc. will post 0.11 earnings per share for the current fiscal year.
Institutional Inflows and Outflows
A number of hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its position in Zscaler by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 11,423,424 shares of the company's stock valued at $2,569,357,000 after purchasing an additional 55,521 shares in the last quarter. Groupama Asset Managment grew its position in Zscaler by 76,352.6% in the third quarter. Groupama Asset Managment now owns 4,750,000 shares of the company's stock valued at $1,423,385,000 after purchasing an additional 4,743,787 shares in the last quarter. First Trust Advisors LP grew its position in shares of Zscaler by 36.2% in the 1st quarter. First Trust Advisors LP now owns 3,518,678 shares of the company's stock valued at $493,635,000 after acquiring an additional 935,781 shares during the period. Price T Rowe Associates Inc. MD grew its position in shares of Zscaler by 43.3% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company's stock valued at $578,576,000 after acquiring an additional 777,414 shares during the period. Finally, State Street Corp grew its position in shares of Zscaler by 3.4% in the 4th quarter. State Street Corp now owns 2,337,604 shares of the company's stock valued at $525,774,000 after acquiring an additional 77,800 shares during the period. Institutional investors own 46.45% of the company's stock.
Analysts Set New Price Targets
Several equities research analysts have recently issued reports on ZS shares. FBN Securities reissued an "outperform" rating and set a $175.00 price objective on shares of Zscaler in a research report on Wednesday, May 27th. Oppenheimer lowered their price objective on shares of Zscaler from $280.00 to $250.00 and set an "outperform" rating for the company in a research report on Tuesday, March 10th. Mizuho decreased their target price on shares of Zscaler from $210.00 to $185.00 and set an "outperform" rating for the company in a research report on Wednesday, May 27th. Zacks Research raised shares of Zscaler from a "strong sell" rating to a "hold" rating in a research report on Wednesday, May 27th. Finally, Wells Fargo & Company decreased their target price on shares of Zscaler from $210.00 to $180.00 and set an "overweight" rating for the company in a research report on Thursday, May 28th. Thirty-four investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $214.33.
Get Our Latest Stock Analysis on Zscaler
Trending Headlines about Zscaler
Here are the key news stories impacting Zscaler this week:
- Positive Sentiment: Wall Street sentiment remains constructive, with Robert W. Baird reiterating a Buy rating and setting a $230 price target, implying significant upside from current levels. Short Sellers May Regret Shorting ZScaler (ZS) As One Analyst Points To 79% Upside
- Positive Sentiment: Zscaler also recently expanded Project AI-Guardian by adding major technology partners, which could support product adoption and platform reach over time. Zscaler (ZS) Adds Major Tech Partners to Project AI-Guardian
- Neutral Sentiment: A media discussion from Jim Cramer noted that SaaS names like Zscaler have fallen out of favor on Wall Street, but also highlighted the company in the context of broader software market rotation. Jim Cramer Says SaaS Companies Like Zscaler “Have Fallen Viciously Out of Favor on Wall Street”
- Neutral Sentiment: Several insiders, including the CEO, CFO, a director, and other executives, sold shares, but the filings say the trades were largely tied to equity award vesting and tax obligations, which often reduces concern about insider sentiment. CFO Kevin Rubin SEC filing
- Neutral Sentiment: Law firms Schall and Pomerantz announced investigations into possible securities-law issues, which may keep investor caution elevated, but no wrongdoing has been established. ZS Investors Have Opportunity to Join Zscaler, Inc. Fraud Investigation with the Schall Law Firm
Zscaler Company Profile
(
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.
Read More
This instant news alert was generated by narrative science technology and financial data from InsiderTrades.com in order to provide readers with the fastest and most accurate reporting. Please send any questions or comments about this story to [email protected].
