Zscaler (NASDAQ:ZS) Stock Price Down 1.2% - Time to Sell?

Key Points

• Zscaler shares fell 1.2% on Monday, trading as low as $127.74 before ending at $129.25 on lighter-than-average volume.
• Despite recent price-target cuts from several firms, Wall Street remains broadly positive: Zscaler has a Moderate Buy consensus with a consensus target of $216.03.
• The company recently beat quarterly expectations, reporting $1.08 EPS on $850.48 million in revenue, with revenue up 25.4% year over year.

Zscaler, Inc. (NASDAQ:ZS - Get Free Report)'s share price dropped 1.2% during trading on Monday . The stock traded as low as $127.74 and last traded at $129.25. Approximately 3,436,509 shares traded hands during mid-day trading, a decline of 4% from the average daily volume of 3,587,286 shares. The stock had previously closed at $130.78.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on ZS shares. BMO Capital Markets dropped their price target on shares of Zscaler from $210.00 to $178.00 and set an "outperform" rating for the company in a research report on Wednesday, May 27th. B. Riley Financial lowered their price objective on shares of Zscaler from $225.00 to $215.00 and set a "buy" rating for the company in a research note on Wednesday, May 27th. Evercore set a $155.00 target price on Zscaler and gave the stock an "in-line" rating in a research report on Wednesday, May 27th. Barclays lowered their price target on Zscaler from $180.00 to $170.00 and set an "overweight" rating for the company in a research report on Wednesday, May 27th. Finally, HC Wainwright upgraded Zscaler from a "buy" rating to a "buy" rating in a report on Monday, May 18th. Thirty-three 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.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $216.03.

Zscaler Stock Performance

The stock has a 50 day simple moving average of $143.61 and a 200 day simple moving average of $182.64. The company has a market cap of $20.90 billion, a price-to-earnings ratio of -269.27 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 posted 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. The business had revenue of $850.48 million during 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%.The company's revenue for the quarter was up 25.4% compared to the same quarter last year. During the same quarter last year, the firm earned $0.84 earnings per share. 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 predict that Zscaler, Inc. will post -0.03 EPS for the current year.

Insider Transactions at Zscaler

In other Zscaler news, EVP Raj Judge sold 2,488 shares of the firm's stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $389,595.92. Following the completion of the sale, the executive vice president owned 67,906 shares in the company, valued at $10,633,400.54. This trade represents a 3.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Kevin Rubin sold 1,682 shares of the firm's stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $263,384.38. Following the sale, the chief financial officer directly owned 46,479 shares of the company's stock, valued at $7,278,146.61. The trade was a 3.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 12,130 shares of company stock worth $1,892,487 over the last three months. Insiders own 17.20% of the company's stock.

Hedge Funds Weigh In On Zscaler

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