Jagtar Singh Chaudhry Sells 2,852 Shares of Zscaler (NASDAQ:ZS) Stock

Zscaler, Inc. (NASDAQ:ZS) CEO Jagtar Chaudhry sold 2,852 shares of the stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $192.76, for a total transaction of $549,751.52. Following the sale, the chief executive officer directly owned 340,186 shares of the company’s stock, valued at $65,574,253.36. This represents a 0.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Zscaler Stock Down 0.1%

Zscaler stock opened at $197.31 on Friday. The firm has a market cap of $32.17 billion, a price-to-earnings ratio of -505.92, a PEG ratio of 23.76 and a beta of 0.95. Zscaler, Inc. has a 52-week low of $114.63 and a 52-week high of $336.99. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.70 and a current ratio of 1.70. The firm has a 50 day moving average price of $168.22 and a two-hundred day moving average price of $151.82.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, beating analysts’ consensus estimates of $1.09 by $0.10. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The company had revenue of $898.19 million for the quarter, compared to analyst estimates of $876.96 million. During the same period in the prior year, the firm posted $0.89 EPS. The company’s quarterly revenue was up 24.9% on a year-over-year basis. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. Equities analysts predict that Zscaler, Inc. will post 0.61 EPS for the current year.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: CEO Jagtar Chaudhry discussed AI safety and the importance of human ingenuity, keeping attention on Zscaler’s opportunity to expand into “Security for AI” and data-security solutions. These newer offerings could broaden the company’s long-term growth beyond its traditional seat-based business. Zscaler CEO on AI safety
• Positive Sentiment: Wall Street remains broadly constructive: Zscaler carries a reported “Moderate Buy” consensus rating, with 34 Buy, six Hold and two Sell ratings. The average price target of $218.38 suggests potential upside from recent trading levels, although targets vary considerably.
• Neutral Sentiment: Director James Beer sold 177 shares for approximately $34,000 under a pre-arranged Rule 10b5-1 plan. The relatively small transaction and planned nature make it a limited signal about management’s view of Zscaler’s valuation. Zscaler director share sale
• Neutral Sentiment: CEO Jagtar Chaudhry, CFO Kevin Rubin and insiders Adam Geller and Robert Schlossman also sold shares. The sales were primarily made under pre-arranged plans or to cover tax withholding on vested equity awards, reducing—but not eliminating—their bearish significance.
• Negative Sentiment: Investors remain sensitive to the possibility that slowing annual recurring-revenue growth could pressure Zscaler’s premium valuation, even as revenue, platform adoption and newer security products continue to expand.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in ZS. BlackRock Inc. acquired a new stake in Zscaler in the second quarter valued at approximately $1,396,028,000. First Trust Advisors LP grew its position in Zscaler by 36.2% in the 1st quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock valued at $493,635,000 after purchasing an additional 935,781 shares during the period. Geode Capital Management LLC grew its position in Zscaler by 5.0% in the 4th quarter. Geode Capital Management LLC now owns 2,069,630 shares of the company’s stock valued at $464,783,000 after purchasing an additional 98,140 shares during the period. Pictet Asset Management Holding SA increased its stake 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 purchasing an additional 661,413 shares in the last quarter. Finally, Amundi increased its stake in Zscaler by 12.8% during the 2nd quarter. Amundi now owns 1,137,837 shares of the company’s stock valued at $160,606,000 after purchasing an additional 129,563 shares in the last quarter. 46.45% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

ZS has been the topic of a number of recent analyst reports. Zacks Research downgraded Zscaler from a “hold” rating to a “strong sell” rating in a research note on Thursday, September 3rd. Rosenblatt Securities reiterated a “buy” rating and issued a $200.00 target price on shares of Zscaler in a report on Friday, September 4th. BTIG Research reissued a “neutral” rating on shares of Zscaler in a research note on Friday, September 4th. Jefferies Financial Group restated a “buy” rating and set a $220.00 price target on shares of Zscaler in a report on Wednesday, September 2nd. Finally, TD Cowen reaffirmed a “buy” rating and set a $200.00 price objective on shares of Zscaler in a research report on Friday, September 4th. Thirty-four research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $218.38.

About Zscaler

Zscaler, Inc is a cloud-native cybersecurity company that provides security services designed to help organizations connect users, devices, applications and workloads securely over the internet. Its platform is built around a zero-trust security model, which verifies access based on identity, context and policy rather than relying primarily on a traditional corporate network perimeter.

The company’s offerings include Zscaler Internet Access, which secures access to internet and software-as-a-service applications, and Zscaler Private Access, which provides secure, policy-based access to private applications without requiring conventional virtual private networks.