Zscaler (NASDAQ:ZS) Shares Up 6.7% – Here’s What Happened

Shares of Zscaler, Inc. (NASDAQ:ZS) shot up 6.7% on Monday . The company traded as high as $169.41 and last traded at $171.8990. 593,392 shares changed hands during mid-day trading, a decline of 78% from the average session volume of 2,753,958 shares. The stock had previously closed at $161.05.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on ZS shares. Barclays set a $220.00 price target on Zscaler in a report on Thursday, February 19th. HC Wainwright upgraded shares of Zscaler from a “buy” rating to a “buy” rating in a report on Monday. Needham & Company LLC cut their price target on shares of Zscaler from $310.00 to $180.00 and set a “buy” rating on the stock in a report on Friday, February 27th. Royal Bank Of Canada reduced their price objective on shares of Zscaler from $250.00 to $205.00 and set an “outperform” rating for the company in a research report on Friday, February 27th. Finally, KeyCorp lifted their target price on shares of Zscaler from $160.00 to $190.00 and gave the stock an “overweight” rating in a research report on Monday. One investment analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $261.26.

Zscaler Stock Up 9.1%

The company has a market capitalization of $28.26 billion, a PE ratio of -418.56 and a beta of 0.96. The stock’s fifty day moving average is $142.95 and its two-hundred day moving average is $200.02. The company has a current ratio of 1.90, a quick ratio of 1.90 and a debt-to-equity ratio of 0.78.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings data on Thursday, February 26th. The company reported $1.01 EPS for the quarter, topping the consensus estimate of $0.89 by $0.12. The business had revenue of $815.75 million for the quarter, compared to analyst estimates of $798.92 million. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The company’s revenue for the quarter was up 25.9% on a year-over-year basis. During the same quarter in the previous 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, analysts predict that Zscaler, Inc. will post -0.03 EPS for the current year.

Insiders Place Their Bets

In other Zscaler news, EVP Raj Judge sold 2,488 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 transaction of $389,595.92. Following the completion of the transaction, the executive vice president directly owned 67,906 shares of the company’s stock, valued at approximately $10,633,400.54. This represents a 3.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Jagtar Singh Chaudhry sold 1,941 shares of the firm’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $303,941.19. Following the completion of the sale, the chief executive officer directly owned 345,916 shares of the company’s stock, valued at $54,166,986.44. This represents a 0.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 12,130 shares of company stock valued at $1,892,487 in the last quarter. 17.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Zscaler

Large investors have recently modified their holdings of the business. Groupama Asset Managment raised its position in shares of Zscaler by 76,352.6% in the third quarter. Groupama Asset Managment now owns 4,750,000 shares of the company’s stock valued at $1,423,385,000 after purchasing an additional 4,743,787 shares during the period. First Trust Advisors LP boosted its holdings in 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 buying an additional 935,781 shares during the period. Price T Rowe Associates Inc. MD grew its stake in Zscaler by 43.3% in 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 buying an additional 777,414 shares in the last quarter. AQR Capital Management LLC raised its holdings in Zscaler by 61.8% during the 3rd quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company’s stock valued at $576,083,000 after acquiring an additional 741,756 shares during the period. Finally, Pictet Asset Management Holding SA raised its holdings in Zscaler by 52.5% during the 1st quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company’s stock valued at $269,285,000 after acquiring an additional 661,413 shares during the period. 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.