Key Points
- Insider sale: Adam Geller sold 1,042 Zscaler shares for approximately $245,860 under a pre-arranged Rule 10b5-1 plan, reducing his holdings by 2.65% to 38,308 shares. He also made several larger sales in September and October.
- Recent performance: Zscaler shares opened at $228.66, up 1.3%, while the company’s latest quarterly results exceeded expectations with $1.19 in EPS and $898.19 million in revenue, up 24.9% year over year.
- Analyst outlook remains positive but cautious: Zscaler has a “Moderate Buy” consensus rating and an average price target of $239.41, though expected growth moderation and the stock’s elevated valuation could create risk.
Zscaler, Inc. (NASDAQ:ZS - Get Free Report) insider Adam Geller sold 1,042 shares of the business's stock in a transaction that occurred on Monday, October 12th. The shares were sold at an average price of $235.95, for a total value of $245,859.90. Following the completion of the sale, the insider owned 38,308 shares of the company's stock, valued at approximately $9,038,772.60. This represents a 2.65% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Adam Geller also recently made the following trade(s):
- On Friday, October 9th, Adam Geller sold 23,958 shares of Zscaler stock. The shares were sold at an average price of $225.43, for a total value of $5,400,851.94.
- On Monday, September 21st, Adam Geller sold 661 shares of Zscaler stock. The stock was sold at an average price of $200.00, for a total transaction of $132,200.00.
- On Thursday, September 17th, Adam Geller sold 4,584 shares of Zscaler stock. The shares were sold at an average price of $192.01, for a total transaction of $880,173.84.
- On Wednesday, September 16th, Adam Geller sold 5,578 shares of Zscaler stock. The shares were sold at an average price of $192.76, for a total transaction of $1,075,215.28.
Zscaler Stock Up 1.3%
ZS stock opened at $228.66 on Wednesday. The company has a market cap of $37.28 billion, a price-to-earnings ratio of -586.31, a price-to-earnings-growth ratio of 21.70 and a beta of 0.94. The company has a fifty day moving average price of $188.89 and a 200 day moving average price of $158.50. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.70 and a quick ratio of 1.70. Zscaler, Inc. has a 12 month low of $114.63 and a 12 month high of $336.99.
Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.09 by $0.10. The company had revenue of $898.19 million for the quarter, compared to the consensus estimate of $876.96 million. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. Zscaler's revenue for the quarter was up 24.9% on a year-over-year basis. During the same period last year, the firm posted $0.89 EPS. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. Sell-side analysts expect that Zscaler, Inc. will post 0.69 earnings per share for the current year.
Key Zscaler News
Here are the key news stories impacting Zscaler this week:
- Positive Sentiment: Investor-day outlook supports bullish sentiment: Zscaler reaffirmed its fiscal 2027 guidance and outlined a long-term path toward approximately $8 billion in annual recurring revenue, with additional upside tied to demand for AI-era cybersecurity. Several analysts reportedly raised their price targets following the event. Zscaler gains as investor-day outlook and analyst target hikes support shares
- Positive Sentiment: AI and international expansion provide growth catalysts: Analysts highlighted Zscaler’s AI-security opportunity, usage-based products and cross-selling potential. Separately, LinkAxia Networks plans to deliver Zscaler zero-trust solutions to Malaysia’s public sector and government-linked companies, potentially expanding its addressable market. LinkAxia Networks to Deliver Zscaler Zero Trust Security Solutions
- Neutral Sentiment: High investor attention and mixed analyst views: ZS was among the most-searched stocks on Zacks, indicating strong market interest, but recent commentary remains divided on whether the stock’s sharp rebound is justified by its fundamentals. Analysts’ Opinions Are Mixed on Technology Stocks
- Negative Sentiment: Growth is expected to moderate: Revenue growth could slow to roughly 17% in fiscal 2027, creating valuation risk after the recent rally. AI products and broader offerings may help offset the deceleration, but execution will be important. Zscaler’s Growth Likely to Slow to 17%
- Negative Sentiment: Insider sales and legal scrutiny add pressure: Chief Product Officer Adam Geller sold about $5.65 million of shares under a pre-arranged Rule 10b5-1 plan. Pomerantz LLP also announced an investigation into potential investor claims; the announcement does not establish wrongdoing, but could weigh on sentiment. Pomerantz Investor Alert
Institutional Inflows and Outflows
A number of institutional investors and hedge funds have recently made changes to their positions in the company. Burkett Financial Services LLC acquired a new stake in Zscaler in the third quarter valued at $27,000. University of Texas Texas AM Investment Management Co. purchased a new stake in shares of Zscaler during the 4th quarter worth $30,000. POM Investment Strategies LLC boosted its position in shares of Zscaler by 92.9% during the 2nd quarter. POM Investment Strategies LLC now owns 218 shares of the company's stock worth $31,000 after purchasing an additional 105 shares in the last quarter. Elevation Wealth Partners LLC grew its stake in shares of Zscaler by 84.3% during the 3rd quarter. Elevation Wealth Partners LLC now owns 153 shares of the company's stock worth $31,000 after purchasing an additional 70 shares during the period. Finally, Western Wealth Management LLC acquired a new position in shares of Zscaler during the 1st quarter worth $33,000. 46.45% of the stock is currently owned by institutional investors and hedge funds.
Wall Street Analyst Weigh In
Several analysts have commented on the company. Robert W. Baird upped their price objective on Zscaler from $230.00 to $285.00 and gave the company an "outperform" rating in a research note on Wednesday, October 7th. Barclays increased their price objective on Zscaler from $220.00 to $225.00 and gave the stock an "overweight" rating in a research report on Wednesday, October 7th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $236.00 target price on shares of Zscaler in a research note on Wednesday, October 7th. Rosenblatt Securities set a $250.00 target price on Zscaler in a report on Wednesday, October 7th. Finally, Citizens Jmp boosted their target price on Zscaler from $210.00 to $265.00 and gave the company a "market outperform" rating in a report on Friday, October 9th. Thirty-five research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Zscaler presently has an average rating of "Moderate Buy" and an average target price of $239.41.
Get Our Latest Report on ZS
Zscaler Company Profile
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Zscaler, Inc is a cloud-based cybersecurity company that provides security services designed to help organizations connect users, applications, devices and workloads securely. Its platform is built around a zero-trust security model, which verifies access based on identity, context and policy rather than relying primarily on traditional network perimeters.
The company's offerings include Zscaler Internet Access, which helps secure internet and software-as-a-service access, and Zscaler Private Access, which provides controlled access to private applications without extending an organization's network to remote users.
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