Zscaler (NASDAQ:ZS) Trading Down 7.3% – Here’s What Happened

Zscaler, Inc. (NASDAQ:ZS)’s share price traded down 7.3% during trading on Tuesday . The stock traded as low as $140.90 and last traded at $140.6560. 2,406,875 shares traded hands during trading, a decline of 10% from the average session volume of 2,674,463 shares. The stock had previously closed at $151.80.

Wall Street Analyst Weigh In

Several analysts have weighed in on ZS shares. Royal Bank Of Canada lowered their price target on Zscaler from $250.00 to $205.00 and set an “outperform” rating on the stock in a report on Friday, February 27th. Oppenheimer decreased their price objective on shares of Zscaler from $280.00 to $250.00 and set an “outperform” rating on the stock in a research report on Tuesday, March 10th. Needham & Company LLC lowered their target price on shares of Zscaler from $310.00 to $180.00 and set a “buy” rating on the stock in a research note on Friday, February 27th. Truist Financial dropped their target price on shares of Zscaler from $350.00 to $250.00 and set a “buy” rating for the company in a research report on Tuesday, February 17th. Finally, Piper Sandler cut their price target on shares of Zscaler from $260.00 to $185.00 and set a “neutral” rating for the company in a research note on Friday, February 27th. Two analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, six have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $267.13.

Zscaler Trading Down 8.2%

The company has a market capitalization of $22.41 billion, a PE ratio of -331.79 and a beta of 1.07. The company has a current ratio of 1.90, a quick ratio of 1.90 and a debt-to-equity ratio of 0.78. The stock has a fifty day moving average of $176.58 and a two-hundred day moving average of $241.63.

Zscaler (NASDAQ:ZS) last issued its earnings results on Thursday, February 26th. The company reported $1.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.89 by $0.12. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The business had revenue of $815.75 million during the quarter, compared to analyst estimates of $798.92 million. During the same quarter in the prior year, the firm earned $0.78 earnings per share. Zscaler’s revenue for the quarter was up 25.9% on a year-over-year basis. 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, sell-side analysts anticipate that Zscaler, Inc. will post -0.1 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Zscaler news, EVP Raj Judge sold 2,488 shares of the business’s stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $389,595.92. Following the completion of the sale, the executive vice president directly owned 67,906 shares of the company’s stock, valued at $10,633,400.54. The trade was a 3.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director James A. Beer sold 177 shares of the company’s stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total transaction of $27,174.81. Following the sale, the director owned 4,384 shares of the company’s stock, valued at approximately $673,075.52. The trade was a 3.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 12,783 shares of company stock worth $2,040,536 in the last ninety days. 17.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Rockefeller Capital Management L.P. lifted its stake in shares of Zscaler by 5.6% in the 4th quarter. Rockefeller Capital Management L.P. now owns 13,344 shares of the company’s stock valued at $3,001,000 after acquiring an additional 708 shares during the last quarter. Spear Advisors LLC bought a new position in Zscaler during the 4th quarter worth approximately $3,460,000. EMC Capital Management increased its stake in Zscaler by 779.1% in the 4th quarter. EMC Capital Management now owns 3,780 shares of the company’s stock worth $819,000 after purchasing an additional 3,350 shares during the period. Worthington Financial Partners LLC purchased a new position in Zscaler in the 4th quarter worth approximately $720,000. Finally, Sentinel Dome Partners LLC bought a new stake in Zscaler in the fourth quarter valued at approximately $990,000. 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.