Zscaler (NASDAQ:ZS) Stock Price Down 3.3% – Time to Sell?

Shares of Zscaler, Inc. (NASDAQ:ZS) dropped 3.3% during mid-day trading on Friday . The stock traded as low as $128.98 and last traded at $130.78. Approximately 4,562,825 shares changed hands during trading, an increase of 27% from the average daily volume of 3,586,887 shares. The stock had previously closed at $135.26.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on ZS shares. Zacks Research upgraded Zscaler from a “strong sell” rating to a “hold” rating in a report on Wednesday, May 27th. Wells Fargo & Company reduced their price target on Zscaler from $210.00 to $180.00 and set an “overweight” rating for the company in a research report on Thursday, May 28th. Cantor Fitzgerald decreased their price objective on Zscaler from $300.00 to $225.00 and set an “overweight” rating for the company in a research note on Wednesday, May 27th. Royal Bank Of Canada dropped their price objective on Zscaler from $205.00 to $200.00 and set an “outperform” rating on the stock in a research report on Wednesday, May 27th. Finally, Piper Sandler cut their target price on Zscaler from $185.00 to $160.00 and set a “neutral” rating on the stock in a research note on Wednesday, May 27th. Thirty-three investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $216.03.

Zscaler Stock Performance

The business has a 50-day moving average price of $143.61 and a 200-day moving average price of $183.43. The firm has a market capitalization of $21.15 billion, a price-to-earnings ratio of -272.45 and a beta of 0.97. 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 (NASDAQ:ZS) last posted its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share 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 firm had revenue of $850.48 million during the quarter, compared to analysts’ expectations of $835.14 million. During the same quarter last year, the firm earned $0.84 EPS. The business’s quarterly revenue was up 25.4% on a year-over-year basis. 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, sell-side analysts forecast that Zscaler, Inc. will post -0.03 earnings per share for the current year.

Insider Buying and Selling at Zscaler

In other news, Director James A. Beer sold 177 shares of the company’s stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total transaction of $27,174.81. Following the transaction, the director 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 transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Kevin Rubin sold 1,682 shares of the 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 $263,384.38. Following the completion of the transaction, the chief financial officer directly owned 46,479 shares of the company’s stock, valued at $7,278,146.61. The trade was a 3.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 12,130 shares of company stock valued at $1,892,487. Insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On Zscaler

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ZS. Binnacle Investments Inc acquired a new position in shares of Zscaler in the third quarter valued at about $25,000. AlphaCentric Advisors LLC purchased a new stake in Zscaler in the fourth quarter valued at approximately $29,000. Picton Mahoney Asset Management acquired a new position in Zscaler in the 3rd quarter worth approximately $30,000. University of Texas Texas AM Investment Management Co. acquired a new position in Zscaler in the 4th quarter worth approximately $30,000. Finally, Mcguire Capital Advisors Inc. purchased a new position in shares of Zscaler during the fourth quarter worth $32,000. Hedge funds and other institutional investors own 46.45% of the company’s stock.

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.