Zscaler (NASDAQ:ZS) Insider Robert Schlossman Sells 3,146 Shares

Key Points

• Zscaler insider Robert Schlossman sold 3,146 shares on June 16 at an average price of $126.43, worth about $397,749. The sale reduced his direct holdings by 4.34% and was made to cover tax withholding tied to equity award vesting.
• The stock fell 2.2% to $124.38 in Wednesday trading, near its 52-week low of $114.63 and well below its 50-day and 200-day moving averages. That reflects continued pressure on the shares despite solid liquidity and a market cap of about $20.11 billion.
• Zscaler beat quarterly expectations, posting EPS of $1.08 versus $1.01 expected and revenue of $850.48 million, up 25.4% year over year. The company also issued FY 2026 guidance and drew mixed analyst reactions, with an average rating of Moderate Buy and an average target price of $214.33.

Zscaler, Inc. (NASDAQ:ZS - Get Free Report) insider Robert Schlossman sold 3,146 shares of the company's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total value of $397,748.78. Following the sale, the insider directly owned 69,366 shares in the company, valued at $8,769,943.38. This represents a 4.34% decrease in their position. The transaction 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 Down 2.2%

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

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

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. Piper Sandler reduced their price target on Zscaler from $185.00 to $160.00 and set a "neutral" rating on the stock in a research report on Wednesday, May 27th. Oppenheimer cut their price target on Zscaler from $280.00 to $250.00 and set an "outperform" rating on the stock in a research note on Tuesday, March 10th. The Goldman Sachs Group restated a "neutral" rating and issued a $179.00 price target on shares of Zscaler in a research note on Wednesday, May 27th. Wedbush restated an "outperform" rating and issued a $220.00 price target on shares of Zscaler in a research note on Wednesday, June 10th. Finally, Royal Bank Of Canada restated an "outperform" rating and issued a $200.00 price target on shares of Zscaler in a research note on Wednesday, June 10th. Thirty-four investment 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, the company currently has an average rating of "Moderate Buy" and an average target price of $214.33.

Key Stories 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

Hedge Funds Weigh In On Zscaler

A number of hedge funds and other institutional investors have recently made changes to their positions in ZS. Binnacle Investments Inc purchased a new stake in Zscaler in the 3rd quarter valued at approximately $25,000. AlphaCentric Advisors LLC purchased a new stake in shares of Zscaler during the 4th quarter worth approximately $29,000. Picton Mahoney Asset Management purchased a new stake in shares of Zscaler during the 3rd quarter worth approximately $30,000. University of Texas Texas AM Investment Management Co. purchased a new stake in shares of Zscaler during the 4th quarter worth approximately $30,000. Finally, Mcguire Capital Advisors Inc. purchased a new stake in shares of Zscaler during the 4th quarter worth approximately $32,000. Hedge funds and other institutional investors own 46.45% of the company's stock.

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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