Zscaler, Inc. $ZS Shares Sold by Royal Bank of Canada

Key Points

• Royal Bank of Canada cut its Zscaler stake by 29.1% in the first quarter, selling 77,811 shares and retaining 189,192 shares valued at approximately $26.5 million. Hedge funds and other institutions own 46.45% of the company.
• Zscaler insiders have sold shares recently, including CEO and CFO transactions totaling more than $736,000; the CEO’s sale covered tax withholding, while the CFO’s transaction was made under a pre-arranged Rule 10b5-1 plan.
• Analysts remain broadly bullish, with 34 Buy ratings, six Holds and one Sell, producing a “Moderate Buy” consensus and an average price target of $214.21. Zscaler also reported quarterly revenue growth of 25.4% and earnings of $1.08 per share, beating estimates.

Royal Bank of Canada decreased its stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 29.1% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 189,192 shares of the company's stock after selling 77,811 shares during the period. Royal Bank of Canada owned 0.12% of Zscaler worth $26,541,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently modified their holdings of the stock. Binnacle Investments Inc acquired a new position in Zscaler in the third quarter valued at $25,000. AlphaCentric Advisors LLC purchased a new stake in shares of Zscaler in the 4th quarter valued at about $29,000. University of Texas Texas AM Investment Management Co. purchased a new stake in shares of Zscaler in the 4th quarter valued at about $30,000. Mcguire Capital Advisors Inc. acquired a new stake in shares of Zscaler in the 4th quarter valued at about $32,000. Finally, Family CFO Inc purchased a new position in Zscaler during the 4th quarter worth approximately $34,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Zscaler

In other news, CEO Jagtar Singh Chaudhry sold 2,878 shares of the stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $363,865.54. Following the completion of the transaction, the chief executive officer owned 343,038 shares in the company, valued at $43,370,294.34. This trade represents a 0.83% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Kevin Rubin sold 3,000 shares of the firm's stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $124.22, for a total transaction of $372,660.00. Following the completion of the sale, the chief financial officer owned 41,901 shares of the company's stock, valued at $5,204,942.22. This trade represents a 6.68% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 16,269 shares of company stock worth $2,052,589. 17.20% of the stock is owned by company insiders.

Analysts Set New Price Targets

Several research analysts have commented on the company. Wells Fargo & Company cut their price target on Zscaler from $210.00 to $180.00 and set an "overweight" rating on the stock in a research report on Thursday, May 28th. Cantor Fitzgerald restated an "overweight" rating and set a $225.00 target price on shares of Zscaler in a research report on Wednesday, June 10th. Sanford C. Bernstein cut their target price on shares of Zscaler from $228.00 to $224.00 and set an "outperform" rating on the stock in a report on Wednesday, May 27th. Wolfe Research reiterated an "outperform" rating and issued a $150.00 price target on shares of Zscaler in a research report on Thursday, June 11th. Finally, JPMorgan Chase & Co. decreased their price target on shares of Zscaler from $250.00 to $205.00 and set an "overweight" rating for the company in a research note on Wednesday, May 27th. Thirty-four research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $214.21.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Gartner recognition reinforces Zscaler’s competitive position. Zscaler was named a Leader in both Gartner’s 2026 Magic Quadrant for SASE Platforms and its Security Service Edge report. It has now been recognized as an SSE Leader for five consecutive years, which may support customer confidence and help the company win enterprise contracts. Zscaler Recognized as a Leader in Both Gartner Reports
• Positive Sentiment: Large-deal activity is accelerating. Zscaler reportedly is seeing record-sized deals, driven by Zero Trust adoption, demand for AI protection, platform consolidation and increasing Z-Flex contract values. Larger, broader contracts could improve revenue visibility and customer expansion prospects. Zscaler’s Large Deal Activity Surges
• Positive Sentiment: AI initiatives are adding to the growth narrative. Zscaler introduced its ZAgent Framework for agentic AI tools within its SASE platform, while joining the CSAI Foundation as a Vanguard member. These developments position the company to benefit from rising demand for secure enterprise AI adoption. Zscaler Gartner and ZAgent Framework Report
• Positive Sentiment: Analysts and media are highlighting potential undervaluation. Recent commentary suggests ZS could be undervalued following a special investor call, helping renew interest ahead of the company’s next earnings release. Zscaler Could Be Undervalued
• Neutral Sentiment: Broader technology-sector momentum is also contributing. Zscaler was included among several soaring cloud, cybersecurity and AI stocks, indicating that part of the move reflects wider investor enthusiasm for growth technology rather than company-specific news alone. Technology Stocks Are Soaring
• Negative Sentiment: AI could test Zscaler’s competitive moat. One analysis cautions that rapidly evolving AI capabilities may challenge the durability of Zscaler’s differentiation, creating a longer-term execution and competitive risk despite the current positive news flow. AI Is Testing Zscaler’s Moat

Zscaler Stock Up 5.7%

Zscaler stock opened at $163.22 on Wednesday. The stock's 50 day moving average price is $139.56 and its 200 day moving average price is $153.09. Zscaler, Inc. has a 1-year low of $114.63 and a 1-year high of $336.99. The company has a market cap of $26.39 billion, a PE ratio of -340.03, a price-to-earnings-growth ratio of 55.59 and a beta of 0.94. 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 - Get Free Report) last released 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 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 in the prior year, the business posted $0.84 earnings per share. Zscaler'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. On average, sell-side analysts predict that Zscaler, Inc. will post 0.12 EPS for the current fiscal year.

About Zscaler

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.

Want to see what other hedge funds are holding ZS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Zscaler, Inc. (NASDAQ:ZS - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source