Insider Selling: Zscaler (NASDAQ:ZS) Insider Sells 1,042 Shares of Stock

Key Points

• Zscaler insider Adam Geller sold 1,042 shares at an average price of $235.95, generating approximately $245,860. The transaction was made under a pre-arranged Rule 10b5-1 plan, leaving him with 38,308 shares.
• Zscaler shares rose 1.3% to $228.66, while the company’s latest quarterly results exceeded expectations: EPS was $1.19 versus $1.09 expected, and revenue reached $898.19 million compared with an $876.96 million consensus.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $239.41. However, continued insider selling and concerns that fiscal 2027 revenue growth could slow to about 17% remain potential risks.

Zscaler, Inc. (NASDAQ:ZS - Get Free Report) insider Adam Geller sold 1,042 shares of the company's stock in a transaction dated 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 directly owned 38,308 shares of the company's stock, valued at approximately $9,038,772.60. This trade represents a 2.65% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 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 stock was 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 value of $132,200.00.
• On Thursday, September 17th, Adam Geller sold 4,584 shares of Zscaler stock. The stock was sold at an average price of $192.01, for a total value of $880,173.84.
• On Wednesday, September 16th, Adam Geller sold 5,578 shares of Zscaler stock. The stock was sold at an average price of $192.76, for a total transaction of $1,075,215.28.

Zscaler Trading Up 1.3%

NASDAQ ZS traded up $2.88 during mid-day trading on Tuesday, hitting $228.66. The company's stock had a trading volume of 2,966,150 shares, compared to its average volume of 3,366,960. The firm has a market capitalization of $37.28 billion, a P/E ratio of -586.31, a price-to-earnings-growth ratio of 22.46 and a beta of 0.94. The stock's fifty day simple moving average is $187.58 and its two-hundred day simple moving average is $157.87. 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 52-week low of $114.63 and a 52-week high of $336.99.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its earnings results on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, beating analysts' consensus estimates of $1.09 by $0.10. The company had revenue of $898.19 million during the quarter, compared to the consensus estimate of $876.96 million. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%. Zscaler's quarterly revenue was up 24.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.89 earnings per share. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. Research analysts expect that Zscaler, Inc. will post 0.69 EPS for the current year.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on ZS shares. Sanford C. Bernstein upped their target price on Zscaler from $224.00 to $298.00 and gave the stock an "outperform" rating in a research report on Thursday, September 17th. Mizuho set a $235.00 price target on Zscaler in a research report on Wednesday, October 7th. BMO Capital Markets boosted their price objective on Zscaler from $178.00 to $200.00 and gave the stock an "outperform" rating in a research note on Friday, September 4th. Jefferies Financial Group upped their price objective on Zscaler from $220.00 to $250.00 and gave the company a "buy" rating in a report on Wednesday, October 7th. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and set a $236.00 target price on shares of Zscaler in a research note on Wednesday, October 7th. Thirty-five investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $239.41.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reaffirmed its fiscal 2027 guidance and presented a long-term framework targeting approximately $8 billion in annual recurring revenue, with additional upside from faster adoption of AI-related security products. Zscaler gains as investor-day outlook and analyst target hikes support shares
• Positive Sentiment: Analysts including TD Cowen, Baird, Stephens and Needham raised their price targets following the investor day, reinforcing confidence in Zscaler’s growth durability and its position in cybersecurity. Analyst target increases
• Positive Sentiment: Potential growth drivers include enterprise AI adoption, usage-based monetization, cross-selling to an estimated $15 billion of customer whitespace and expanding non-seat products. AI-related offerings reportedly account for about 30% of new contract value, while metered recurring revenue is growing more than 100% year over year. Zscaler growth outlook
• Neutral Sentiment: A Malaysia-based technology provider announced plans to deliver Zscaler zero-trust solutions to public-sector and government-linked customers, potentially supporting international adoption, though the financial impact was not disclosed. LinkAxia Networks partnership
• Negative Sentiment: Analysts and investors remain concerned that revenue growth could slow to roughly 17% in fiscal 2027, despite the company’s AI opportunity. The stock’s recent rally has also pushed it above the reported six-month median analyst target of $195, raising valuation and profit-taking risks. Zscaler growth slowdown analysis
• Negative Sentiment: Insiders reported 39 open-market sales and no purchases over the past six months. The selling, including transactions by senior executives, may weigh on sentiment even though it does not necessarily indicate deteriorating fundamentals.

Institutional Trading of Zscaler

A number of hedge funds have recently made changes to their positions in ZS. Quintet Private Bank Europe S.A. grew its stake in shares of Zscaler by 4.5% in the 3rd quarter. Quintet Private Bank Europe S.A. now owns 1,170 shares of the company's stock valued at $233,000 after buying an additional 50 shares in the last quarter. Parkside Financial Bank & Trust raised its holdings in Zscaler by 18.8% in the 2nd quarter. Parkside Financial Bank & Trust now owns 417 shares of the company's stock valued at $59,000 after acquiring an additional 66 shares in the last quarter. Elevation Wealth Partners LLC boosted its position in shares of Zscaler by 84.3% during the 3rd quarter. Elevation Wealth Partners LLC now owns 153 shares of the company's stock valued at $31,000 after acquiring an additional 70 shares in the last quarter. Versant Capital Management Inc grew its position in Zscaler by 45.6% in the third quarter. Versant Capital Management Inc now owns 230 shares of the company's stock valued at $46,000 after acquiring an additional 72 shares during the period. Finally, Koshinski Asset Management Inc. increased its holdings in shares of Zscaler by 2.7% during the first quarter. Koshinski Asset Management Inc. now owns 3,036 shares of the company's stock worth $426,000 after buying an additional 79 shares in the last quarter. 46.45% of the stock is owned by hedge funds and other institutional investors.

About Zscaler

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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