Zscaler (NASDAQ:ZS) Hits New 1-Year Low - Time to Sell?

Key Points

• Zscaler hit a new 52-week low, trading as low as $126.80 and last at $125.75 on heavy volume, with the stock down roughly 7.8% in the recent move.
• Analysts have trimmed price targets (several cuts from Stephens, Cantor Fitzgerald, Goldman, etc.), but the consensus remains a Moderate Buy with an average price target of $267.86.
• The company beat quarterly expectations (EPS $1.01 vs. $0.89 est.; revenue $815.8M, +25.9% YoY) and issued FY2026 EPS guidance of 3.99–4.02, while insiders have been selling recently (12,130 shares sold in the last 90 days, insiders own ~17.2%).

Zscaler, Inc. (NASDAQ:ZS - Get Free Report) shares hit a new 52-week low on Thursday . The company traded as low as $126.80 and last traded at $125.7510, with a volume of 770952 shares changing hands. The stock had previously closed at $137.85.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on the company. Stephens dropped their target price on Zscaler from $340.00 to $225.00 and set an "overweight" rating on the stock in a report on Monday, February 23rd. Cantor Fitzgerald dropped their target price on Zscaler from $365.00 to $300.00 and set an "overweight" rating on the stock in a report on Tuesday, February 24th. Piper Sandler dropped their price objective on Zscaler from $260.00 to $185.00 and set a "neutral" rating on the stock in a report on Friday, February 27th. The Goldman Sachs Group dropped their price objective on Zscaler from $290.00 to $257.00 and set a "neutral" rating on the stock in a report on Monday, March 2nd. Finally, Berenberg Bank dropped their price objective on Zscaler from $390.00 to $320.00 and set a "buy" rating on the stock in a report on Friday, February 27th. Two analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Zscaler currently has a consensus rating of "Moderate Buy" and a consensus price target of $267.86.

Zscaler Stock Down 7.8%

The company has a debt-to-equity ratio of 0.78, a current ratio of 1.90 and a quick ratio of 1.90. The stock has a market cap of $20.43 billion, a price-to-earnings ratio of -301.95 and a beta of 1.12. The business has a fifty day moving average of $158.85 and a 200 day moving average of $229.76.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The company reported $1.01 earnings per share for the quarter, beating the consensus estimate of $0.89 by $0.12. The company had revenue of $815.75 million during the quarter, compared to analysts' expectations of $798.92 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.Zscaler's revenue for the quarter was up 25.9% compared to the same quarter last year. During the same period in the prior year, the business earned $0.78 earnings per share. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. On average, equities analysts predict that Zscaler, Inc. will post -0.1 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Robert Schlossman sold 2,263 shares of the company's stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $354,363.17. Following the completion of the transaction, the insider directly owned 72,390 shares in the company, valued at approximately $11,335,550.10. This represents a 3.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Adam Geller sold 2,094 shares of the company's stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total value of $321,491.82. Following the completion of the transaction, the insider owned 46,949 shares of the company's stock, valued at $7,208,079.97. The trade was a 4.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 12,130 shares of company stock valued at $1,892,487 in the last ninety days. 17.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Integrated Wealth Concepts LLC raised its stake in Zscaler by 19.9% during the first quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company's stock worth $285,000 after acquiring an additional 239 shares in the last quarter. NewEdge Advisors LLC raised its stake in Zscaler by 8.2% during the first quarter. NewEdge Advisors LLC now owns 4,899 shares of the company's stock worth $972,000 after acquiring an additional 370 shares in the last quarter. Empowered Funds LLC raised its stake in Zscaler by 9.2% during the first quarter. Empowered Funds LLC now owns 2,811 shares of the company's stock worth $558,000 after acquiring an additional 238 shares in the last quarter. Sivia Capital Partners LLC acquired a new position in Zscaler during the second quarter worth $252,000. Finally, CW Advisors LLC raised its stake in Zscaler by 49.0% during the second quarter. CW Advisors LLC now owns 1,638 shares of the company's stock worth $514,000 after acquiring an additional 539 shares in the last quarter. 46.45% of the stock is currently owned by institutional investors and hedge funds.

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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