Zscaler (NASDAQ:ZS) Trading Down 5.5% - Time to Sell?

Key Points

• Zscaler shares fell 5.5% to about $115.50 on Friday with trading volume down ~44% versus average, leaving the stock well below its 50‑day ($157.28) and 200‑day ($229.02) moving averages.
• Several analysts cut price targets (e.g., Piper Sandler to $185, Citi to $195) but the consensus remains a Moderate Buy with an average target of $267.86.
• The company beat quarterly estimates (EPS $1.01 vs. $0.89, revenue $815.8M, +25.9% YoY) and guided FY‑2026 EPS to $3.99–4.02, while insiders have sold shares recently (12,130 shares in the past 90 days).

Zscaler, Inc. (NASDAQ:ZS - Get Free Report) shares fell 5.5% on Friday . The stock traded as low as $114.63 and last traded at $115.4970. 1,505,012 shares were traded during trading, a decline of 44% from the average session volume of 2,696,679 shares. The stock had previously closed at $122.23.

Wall Street Analyst Weigh In

Several research firms recently weighed in on ZS. Piper Sandler dropped their price objective on shares of Zscaler from $260.00 to $185.00 and set a "neutral" rating on the stock in a research note on Friday, February 27th. Barclays set a $220.00 price objective on shares of Zscaler in a research note on Thursday, February 19th. Citigroup dropped their price target on shares of Zscaler from $305.00 to $195.00 and set a "buy" rating on the stock in a research note on Monday, March 2nd. BTIG Research restated a "neutral" rating on shares of Zscaler in a research note on Thursday. Finally, Cantor Fitzgerald dropped their price target on shares of Zscaler from $365.00 to $300.00 and set an "overweight" rating on the stock in a research note on Tuesday, February 24th. Two analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $267.86.

Zscaler Stock Down 4.0%

The firm's fifty day moving average price is $157.28 and its 200-day moving average price is $229.02. 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 firm has a market capitalization of $18.88 billion, a P/E ratio of -279.92 and a beta of 1.12.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The company reported $1.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.89 by $0.12. The business had revenue of $815.75 million during the quarter, compared to analysts' expectations of $798.92 million. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The business's revenue was up 25.9% on a year-over-year basis. During the same period last year, the firm posted $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. As a group, equities research analysts forecast that Zscaler, Inc. will post -0.1 earnings per share for the current year.

Insider Transactions at Zscaler

In related news, insider Robert Schlossman sold 2,263 shares of the 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 owned 72,390 shares in the company, valued at $11,335,550.10. This trade represents a 3.03% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Kevin Rubin sold 1,682 shares of the stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $263,384.38. Following the completion of the transaction, the chief financial officer owned 46,479 shares of the company's stock, valued at $7,278,146.61. This trade represents a 3.49% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 12,130 shares of company stock valued at $1,892,487 in the last 90 days. 17.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Zscaler

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ZS. Binnacle Investments Inc acquired a new position in Zscaler in the 3rd quarter worth approximately $25,000. Tradewinds Capital Management LLC boosted its stake in Zscaler by 145.7% in the 3rd quarter. Tradewinds Capital Management LLC now owns 86 shares of the company's stock worth $26,000 after purchasing an additional 51 shares during the period. Root Financial Partners LLC acquired a new position in Zscaler in the 3rd quarter worth approximately $26,000. McIlrath & Eck LLC acquired a new position in Zscaler in the 3rd quarter worth approximately $29,000. Finally, AlphaCentric Advisors LLC acquired a new position in Zscaler in the 4th quarter worth approximately $29,000. Institutional investors and hedge funds own 46.45% of the company's stock.

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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