Zscaler (NASDAQ:ZS) Shares Down 2.4% - Should You Sell?

Key Points

• Zscaler shares fell 2.4% in Tuesday trading, with volume slightly above average as the stock moved between $123.61 and $127.23 after closing at $130.42 the prior session.
• Analyst sentiment remains broadly positive: 34 analysts rate the stock a Buy, six a Hold, and one a Sell, giving Zscaler a Moderate Buy consensus and a $214.33 average target price.
• The company recently topped quarterly expectations, reporting $1.08 EPS on $850.48 million in revenue, while also issuing Q4 FY2026 and FY2026 guidance above current analyst estimates.

Zscaler, Inc. (NASDAQ:ZS - Get Free Report) shares fell 2.4% during mid-day trading on Tuesday . The company traded as low as $123.61 and last traded at $127.23. 3,805,695 shares traded hands during trading, an increase of 5% from the average session volume of 3,608,208 shares. The stock had previously closed at $130.42.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on ZS. FBN Securities restated an "outperform" rating and set a $175.00 target price on shares of Zscaler in a research report on Wednesday, May 27th. Zacks Research raised shares of Zscaler from a "strong sell" rating to a "hold" rating in a research report on Wednesday, May 27th. The Goldman Sachs Group reissued a "neutral" rating and issued a $179.00 price objective on shares of Zscaler in a research report on Wednesday, May 27th. Deutsche Bank Aktiengesellschaft cut their price objective on shares of Zscaler from $185.00 to $175.00 and set a "buy" rating for the company in a research report on Wednesday, May 27th. Finally, Guggenheim reissued a "buy" rating and issued a $214.00 price objective on shares of Zscaler in a research report on Wednesday, June 10th. Thirty-four analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $214.33.

Zscaler Trading Down 2.4%

The business's fifty day moving average is $142.38 and its 200-day moving average is $175.99. The stock has a market capitalization of $20.57 billion, a PE ratio of -265.06, a P/E/G ratio of 80.98 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 (NASDAQ:ZS - Get Free Report) last released its 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. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The firm had revenue of $850.48 million during the quarter, compared to the consensus estimate of $835.14 million. During the same period in the previous year, the firm earned $0.84 earnings per share. Zscaler'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. As a group, analysts anticipate that Zscaler, Inc. will post 0.11 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director James A. Beer sold 177 shares of the business's stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total value of $27,174.81. Following the completion of the sale, the director directly owned 4,384 shares in the company, valued at approximately $673,075.52. The trade was a 3.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Adam Geller sold 2,094 shares of the business's stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total transaction of $321,491.82. Following the completion of the sale, the insider owned 46,949 shares of the company's stock, valued at approximately $7,208,079.97. The trade was a 4.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 17.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Zscaler

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

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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