James Beer Sells 177 Shares of Zscaler (NASDAQ:ZS) Stock

Key Points

• Director James Beer sold 177 shares of Zscaler at an average price of $125.50, reducing his position by 4.04%. The sale was disclosed in an SEC filing and was made under a pre-arranged Rule 10b5-1 plan.
• Zscaler’s stock traded lower on Wednesday at $124.38, near its 12-month low of $114.63 and well below its 50-day and 200-day moving averages. The company also has a negative trailing valuation and a market cap of about $20.11 billion.
• The company recently beat quarterly expectations, posting $1.08 EPS on $850.48 million in revenue, while analysts remain generally bullish with a Moderate Buy consensus and an average target price of $214.33.

Zscaler, Inc. (NASDAQ:ZS - Get Free Report) Director James Beer sold 177 shares of the firm's stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $125.50, for a total value of $22,213.50. Following the transaction, the director owned 4,207 shares of the company's stock, valued at $527,978.50. This represents a 4.04% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Zscaler Price Performance

NASDAQ ZS traded down $2.85 during trading on Wednesday, hitting $124.38. 3,115,502 shares of the stock traded hands, compared to its average volume of 7,138,735. The company has a market capitalization of $20.11 billion, a P/E ratio of -259.12, a price-to-earnings-growth ratio of 79.55 and a beta of 0.97. The firm has a 50-day simple moving average of $141.85 and a 200-day simple 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.

Zscaler (NASDAQ:ZS - Get Free Report) last released its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, beating the consensus estimate of $1.01 by $0.07. The business had revenue of $850.48 million during the quarter, compared to analysts' expectations of $835.14 million. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The firm's revenue for the quarter was up 25.4% compared to the same quarter last year. During the same quarter last year, the business posted $0.84 EPS. 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, analysts predict that Zscaler, Inc. will post 0.11 EPS for the current year.

Institutional Investors Weigh In On Zscaler

A number of institutional investors and hedge funds have recently modified their holdings of ZS. Groupama Asset Managment lifted its stake in shares of Zscaler by 76,352.6% during the 3rd quarter. Groupama Asset Managment now owns 4,750,000 shares of the company's stock worth $1,423,385,000 after acquiring an additional 4,743,787 shares during the last quarter. First Trust Advisors LP lifted its stake in shares of Zscaler by 36.2% during the 1st quarter. First Trust Advisors LP now owns 3,518,678 shares of the company's stock worth $493,635,000 after acquiring an additional 935,781 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its stake in shares of Zscaler by 43.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company's stock worth $578,576,000 after acquiring an additional 777,414 shares during the last quarter. AQR Capital Management LLC lifted its stake in shares of Zscaler by 61.8% during the 3rd quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company's stock worth $576,083,000 after acquiring an additional 741,756 shares during the last quarter. Finally, Pictet Asset Management Holding SA lifted its stake in shares of Zscaler by 52.5% during the 1st quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company's stock worth $269,285,000 after acquiring an additional 661,413 shares during the last quarter. 46.45% of the stock is owned by institutional investors.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Robert W. Baird reiterated a Buy rating on Zscaler and set a $230 price target, implying substantial upside from current levels. Short Sellers May Regret Shorting ZScaler (ZS) As One Analyst Points To 79% Upside
• Positive Sentiment: Zscaler said it expanded Project AI-Guardian with major technology alliance partners, a move that supports its product ecosystem and could help long-term growth. Zscaler (ZS) Adds Major Tech Partners to Project AI-Guardian
• Neutral Sentiment: Jim Cramer said SaaS names like Zscaler have fallen out of favor on Wall Street, which highlights weak sentiment toward the sector but does not change fundamentals directly. Jim Cramer Says SaaS Companies Like Zscaler “Have Fallen Viciously Out of Favor on Wall Street”
• Negative Sentiment: The Schall Law Firm and Pomerantz LLP both announced investigations into Zscaler over possible securities-law violations, adding legal overhang for the stock. ZS Investors Have Opportunity to Join Zscaler, Inc. Fraud Investigation with the Schall Law Firm
• Negative Sentiment: Several executives and directors, including the CEO, CFO, and other insiders, disclosed stock sales. While most were tied to tax withholding or pre-arranged plans, multiple sales in one day can still weigh on investor sentiment. SEC filing for CEO sale

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the company. Wolfe Research reaffirmed an "outperform" rating and issued a $150.00 price objective on shares of Zscaler in a research note on Thursday, June 11th. Oppenheimer lowered their price objective on Zscaler from $280.00 to $250.00 and set an "outperform" rating for the company in a research note on Tuesday, March 10th. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $225.00 price objective on shares of Zscaler in a research note on Wednesday, June 10th. Truist Financial set a $210.00 price objective on Zscaler in a research note on Wednesday, May 27th. Finally, BTIG Research reaffirmed a "neutral" rating on shares of Zscaler in a research note on Thursday, April 9th. 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 $214.33.

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.

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