Zscaler (NASDAQ:ZS) CFO Kevin Rubin Sells 1,686 Shares

Key Points

• Zscaler CFO Kevin Rubin sold 1,686 shares at an average price of $126.43, for total proceeds of about $213,161. The sale was disclosed in an SEC filing and was tied to tax withholding obligations from vested equity awards.
• ZS shares fell to $124.38 in Wednesday trading, leaving the stock well below its 50-day and 200-day moving averages. The company’s market cap is about $20.11 billion, and the stock has traded between a 1-year low of $114.63 and a high of $336.99.
• Recent earnings and analyst sentiment remain mixed: Zscaler beat quarterly EPS and revenue estimates and raised guidance, while analysts still maintain a consensus Moderate Buy with an average price target of $214.33. Several firms recently reiterated bullish ratings, though some lowered their targets.

Zscaler, Inc. (NASDAQ:ZS - Get Free Report) CFO Kevin Rubin sold 1,686 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 $213,160.98. Following the completion of the transaction, the chief financial officer directly owned 44,901 shares in the company, valued at $5,676,833.43. This represents a 3.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Zscaler Stock Performance

Shares of ZS stock traded down $2.85 during mid-day trading on Wednesday, reaching $124.38. The stock had a trading volume of 3,115,502 shares, compared to its average volume of 7,138,735. The business's fifty day moving average is $141.85 and its 200-day moving average is $174.22. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72. The firm has a market cap of $20.11 billion, a price-to-earnings ratio of -259.12, a PEG ratio of 79.55 and a beta of 0.97. Zscaler, Inc. has a 1-year low of $114.63 and a 1-year high of $336.99.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its earnings results on Tuesday, May 26th. The company reported $1.08 EPS 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 for the quarter, compared to the consensus estimate of $835.14 million. During the same quarter in the prior year, the business earned $0.84 earnings per share. The company'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, research analysts forecast that Zscaler, Inc. will post 0.11 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the company. Evercore set a $155.00 price target on Zscaler and gave the stock an "in-line" rating in a research report on Wednesday, May 27th. Oppenheimer reduced their target price on Zscaler from $280.00 to $250.00 and set an "outperform" rating for the company in a report on Tuesday, March 10th. Robert W. Baird reduced their target price on Zscaler from $265.00 to $230.00 and set an "outperform" rating for the company in a report on Wednesday, May 27th. Cantor Fitzgerald reissued an "overweight" rating and set a $225.00 target price on shares of Zscaler in a report on Wednesday, June 10th. Finally, Stephens reissued an "overweight" rating and set a $200.00 target price on shares of Zscaler in a report on Friday, June 12th. Thirty-four investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $214.33.

Institutional Investors Weigh In On Zscaler

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

Key Headlines Impacting Zscaler

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

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.

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