Zscaler (NASDAQ:ZS) Shares Down 2.2% Following Insider Selling

Zscaler, Inc. (NASDAQ:ZS)’s share price traded down 2.2% during trading on Wednesday after an insider sold shares in the company. The company traded as low as $123.38 and last traded at $124.38. 3,101,240 shares traded hands during trading, a decline of 14% from the average daily volume of 3,609,885 shares. The stock had previously closed at $127.23.

Specifically, CFO Kevin Rubin sold 1,686 shares of the business’s stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $213,160.98. Following the sale, the chief financial officer directly owned 44,901 shares in the company, valued at approximately $5,676,833.43. The trade was a 3.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Robert Schlossman sold 3,146 shares of the company’s stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $397,748.78. Following the completion of the transaction, the insider owned 69,366 shares of the company’s stock, valued at $8,769,943.38. The trade was a 4.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In related news, insider Adam Geller sold 1,940 shares of the firm’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total value of $245,274.20. Following the completion of the transaction, the insider directly owned 45,131 shares of the company’s stock, valued at $5,705,912.33. This trade represents a 4.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Analysts Set New Price Targets

ZS has been the topic of a number of recent research reports. FBN Securities reissued an “outperform” rating and issued a $175.00 price target on shares of Zscaler in a report on Wednesday, May 27th. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $225.00 price objective on shares of Zscaler in a report on Wednesday, June 10th. UBS Group decreased their target price on shares of Zscaler from $260.00 to $225.00 and set a “buy” rating on the stock in a research report on Wednesday, May 27th. Stephens reiterated an “overweight” rating and set a $200.00 target price on shares of Zscaler in a research report on Friday, June 12th. Finally, Citigroup reissued a “market outperform” rating on shares of Zscaler in a research note on Wednesday, May 27th. Thirty-four investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $214.33.

Zscaler Price Performance

The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. The business has a 50-day simple moving average of $141.51 and a two-hundred day simple moving average of $173.33. The stock has a market capitalization of $20.19 billion, a P/E ratio of -260.10, a PEG ratio of 77.77 and a beta of 0.97.

Zscaler (NASDAQ:ZS) last issued its quarterly earnings data 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 return on equity of 0.37% and a negative net margin of 2.44%.The company had revenue of $850.48 million during the quarter, compared to analysts’ expectations of $835.14 million. During the same period last year, the business earned $0.84 earnings per share. The business’s revenue 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. Equities research analysts forecast that Zscaler, Inc. will post 0.11 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Zscaler

A number of hedge funds have recently made changes to their positions in ZS. Goldstream Capital Management Ltd grew its stake in Zscaler by 0.3% during the third quarter. Goldstream Capital Management Ltd now owns 12,450 shares of the company’s stock worth $3,731,000 after buying an additional 34 shares during the last quarter. Kentucky Retirement Systems Insurance Trust Fund raised its stake in shares of 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 acquiring an additional 36 shares during the last quarter. Advisor OS LLC boosted its holdings in shares of Zscaler by 4.6% in the 3rd quarter. Advisor OS LLC now owns 879 shares of the company’s stock worth $263,000 after acquiring an additional 39 shares in the last quarter. Parallel Advisors LLC boosted its holdings in shares of Zscaler by 10.9% in the 3rd quarter. Parallel Advisors LLC now owns 397 shares of the company’s stock worth $119,000 after acquiring an additional 39 shares in the last quarter. Finally, Smartleaf Asset Management LLC grew its position in Zscaler by 7.5% during the 2nd quarter. Smartleaf Asset Management LLC now owns 648 shares of the company’s stock worth $204,000 after acquiring an additional 45 shares during the last quarter. Institutional investors and hedge funds 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.