Jagtar Singh Chaudhry Sells 2,878 Shares of Zscaler (NASDAQ:ZS) Stock

Zscaler, Inc. (NASDAQ:ZS) CEO Jagtar Singh Chaudhry sold 2,878 shares of the business’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $363,865.54. Following the transaction, the chief executive officer owned 343,038 shares in the company, valued at $43,370,294.34. This represents a 0.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Zscaler Price Performance

Shares of ZS stock traded down $2.85 during trading hours on Wednesday, hitting $124.38. The company had a trading volume of 3,115,502 shares, compared to its average volume of 7,138,735. Zscaler, Inc. has a 12 month low of $114.63 and a 12 month high of $336.99. The firm has a market capitalization of $20.11 billion, a price-to-earnings ratio of -259.12, a PEG ratio of 79.55 and a beta of 0.97. The firm’s fifty day moving average is $141.85 and its 200 day moving average is $174.22. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86.

Zscaler (NASDAQ:ZS) last released its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, beating the consensus estimate 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 for the quarter, compared to analyst estimates of $835.14 million. During the same period in the prior year, the company posted $0.84 EPS. The company’s revenue was up 25.4% compared to the same quarter last year. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. On average, sell-side analysts predict that Zscaler, Inc. will post 0.11 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Groupama Asset Managment lifted its holdings in Zscaler by 76,352.6% during the 3rd quarter. Groupama Asset Managment now owns 4,750,000 shares of the company’s stock worth $1,423,385,000 after buying an additional 4,743,787 shares in the last quarter. First Trust Advisors LP lifted its holdings in Zscaler by 36.2% during 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 in the last quarter. Price T Rowe Associates Inc. MD lifted its stake in shares of 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 purchasing an additional 777,414 shares during the period. AQR Capital Management LLC increased its position in shares of Zscaler by 61.8% in the 3rd quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company’s stock valued at $576,083,000 after buying an additional 741,756 shares in the last quarter. Finally, Pictet Asset Management Holding SA increased 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 worth $269,285,000 after purchasing an additional 661,413 shares in the last quarter. 46.45% of the stock is owned by institutional investors and hedge funds.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Robert W. Baird reiterated a Buy rating on Zscaler and set a $230 price target, implying substantial upside from current levels. Short Sellers May Regret Shorting ZScaler (ZS) As One Analyst Points To 79% Upside
• Positive Sentiment: Zscaler said it expanded Project AI-Guardian with major technology alliance partners, a move that supports its product ecosystem and could help long-term growth. Zscaler (ZS) Adds Major Tech Partners to Project AI-Guardian
• Neutral Sentiment: Jim Cramer said SaaS names like Zscaler have fallen out of favor on Wall Street, which highlights weak sentiment toward the sector but does not change fundamentals directly. Jim Cramer Says SaaS Companies Like Zscaler “Have Fallen Viciously Out of Favor on Wall Street”
• Negative Sentiment: The Schall Law Firm and Pomerantz LLP both announced investigations into Zscaler over possible securities-law violations, adding legal overhang for the stock. ZS Investors Have Opportunity to Join Zscaler, Inc. Fraud Investigation with the Schall Law Firm
• Negative Sentiment: Several executives and directors, including the CEO, CFO, and other insiders, disclosed stock sales. While most were tied to tax withholding or pre-arranged plans, multiple sales in one day can still weigh on investor sentiment. SEC filing for CEO sale

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the company. TD Cowen reiterated a “buy” rating on shares of Zscaler in a research note on Wednesday, May 27th. Zacks Research upgraded Zscaler from a “strong sell” rating to a “hold” rating in a research note on Wednesday, May 27th. Morgan Stanley reduced their target price on Zscaler from $155.00 to $145.00 and set an “equal weight” rating on the stock in a report on Wednesday, May 27th. JPMorgan Chase & Co. reduced their target price on Zscaler from $250.00 to $205.00 and set an “overweight” rating on the stock in a report on Wednesday, May 27th. Finally, Piper Sandler reduced their target price on Zscaler from $185.00 to $160.00 and set a “neutral” rating on the stock in a report 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 company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $214.33.

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.