Zscaler (NASDAQ:ZS) Insider Sells $245,274.20 in Stock

Key Points

• Zscaler insider Adam Geller sold 1,940 shares for about $245,274 at an average price of $126.43, reducing his position by 4.12%. The company said the sale was to cover tax withholding tied to vesting equity awards.
• Zscaler shares fell 2.2% to $124.38 in Wednesday trading, with the stock well below its 50-day and 200-day moving averages. Despite the decline, the company still carries a market cap of about $20.1 billion.
• Analysts remain generally positive on Zscaler after its recent earnings beat and 25.4% revenue growth, with a consensus rating of “Moderate Buy” and an average target price of $214.33. However, some firms have trimmed price targets, and recent insider selling plus legal investigations may weigh on sentiment.

Zscaler, Inc. (NASDAQ:ZS - Get Free Report) insider Adam Geller sold 1,940 shares of the stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $245,274.20. Following the completion of the sale, the insider directly owned 45,131 shares of the company's stock, valued at approximately $5,705,912.33. The trade was a 4.12% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Zscaler Stock Down 2.2%

Shares of NASDAQ ZS traded down $2.85 during trading hours on Wednesday, hitting $124.38. The company had a trading volume of 3,115,502 shares, compared to its average volume of 7,138,735. The stock 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 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 1-year low of $114.63 and a 1-year high of $336.99. The firm's 50 day moving average is $141.85 and its 200-day moving average is $174.22.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, beating 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 business had revenue of $850.48 million for the quarter, compared to analysts' expectations of $835.14 million. During the same quarter in the prior year, the business earned $0.84 EPS. The firm's revenue for the quarter was up 25.4% on a year-over-year basis. 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, analysts expect that Zscaler, Inc. will post 0.11 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of research analysts recently commented on ZS shares. Deutsche Bank Aktiengesellschaft decreased their price target on Zscaler from $185.00 to $175.00 and set a "buy" rating on the stock in a research report on Wednesday, May 27th. Guggenheim restated a "buy" rating and issued a $214.00 price target on shares of Zscaler in a research report on Wednesday, June 10th. Canaccord Genuity Group restated a "buy" rating and issued a $210.00 price target on shares of Zscaler in a research report on Thursday, June 11th. Piper Sandler decreased 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. Finally, Wedbush restated an "outperform" rating and issued a $220.00 price target on shares of Zscaler in a research report on Wednesday, June 10th. Thirty-four equities 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 stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $214.33.

Trending Headlines about 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

Institutional Trading of Zscaler

Several large investors have recently bought and sold shares of the business. Goldstream Capital Management Ltd boosted its stake in Zscaler by 0.3% in the third quarter. Goldstream Capital Management Ltd now owns 12,450 shares of the company's stock valued at $3,731,000 after buying an additional 34 shares in the last quarter. Kentucky Retirement Systems Insurance Trust Fund boosted its stake in Zscaler by 1.4% in the third quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 2,569 shares of the company's stock valued at $770,000 after buying an additional 36 shares in the last quarter. Advisor OS LLC boosted its stake in Zscaler by 4.6% in the third quarter. Advisor OS LLC now owns 879 shares of the company's stock valued at $263,000 after buying an additional 39 shares in the last quarter. Parallel Advisors LLC boosted its stake in Zscaler by 10.9% in the third quarter. Parallel Advisors LLC now owns 397 shares of the company's stock valued at $119,000 after buying an additional 39 shares in the last quarter. Finally, Smartleaf Asset Management LLC boosted its stake in Zscaler by 7.5% in the second quarter. Smartleaf Asset Management LLC now owns 648 shares of the company's stock valued at $204,000 after buying an additional 45 shares in the last quarter. 46.45% of the stock is 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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