Zscaler (NASDAQ:ZS) Reaches New 1-Year Low – Here’s What Happened

Shares of Zscaler, Inc. (NASDAQ:ZS) hit a new 52-week low during mid-day trading on Friday . The company traded as low as $162.94 and last traded at $167.3360, with a volume of 1898416 shares changing hands. The stock had previously closed at $169.39.

Analysts Set New Price Targets

Several brokerages have recently weighed in on ZS. HC Wainwright reiterated a “buy” rating on shares of Zscaler in a research report on Wednesday, November 26th. Capital One Financial set a $320.00 price objective on Zscaler and gave the company an “overweight” rating in a report on Wednesday, November 26th. Mizuho upgraded Zscaler from a “neutral” rating to an “outperform” rating and set a $310.00 price objective on the stock in a research note on Tuesday, December 16th. Wedbush increased their target price on Zscaler from $330.00 to $350.00 and gave the stock an “outperform” rating in a report on Monday, November 10th. Finally, Rosenblatt Securities restated a “buy” rating and set a $365.00 target price on shares of Zscaler in a research report on Wednesday, November 26th. One analyst has rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Zscaler presently has a consensus rating of “Moderate Buy” and a consensus target price of $317.63.

Zscaler Price Performance

The stock has a fifty day moving average of $222.56 and a two-hundred day moving average of $268.29. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 0.86. The stock has a market capitalization of $26.51 billion, a price-to-earnings ratio of -639.26, a PEG ratio of 387.76 and a beta of 1.02.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data on Tuesday, November 25th. The company reported $0.96 EPS for the quarter, topping analysts’ consensus estimates of $0.85 by $0.11. Zscaler had a negative return on equity of 0.12% and a negative net margin of 1.45%.The company had revenue of $788.11 million for the quarter, compared to analyst estimates of $773.86 million. During the same quarter in the previous year, the firm earned $0.77 earnings per share. The business’s revenue was up 25.5% on a year-over-year basis. Zscaler has set its FY 2026 guidance at 3.780-3.820 EPS and its Q2 2026 guidance at 0.890-0.900 EPS. As a group, equities research analysts forecast that Zscaler, Inc. will post -0.1 earnings per share for the current year.

Insider Buying and Selling at Zscaler

In other Zscaler news, Director James A. Beer sold 653 shares of the stock in a transaction on Friday, January 2nd. The stock was sold at an average price of $226.72, for a total value of $148,048.16. Following the transaction, the director directly owned 3,485 shares in the company, valued at approximately $790,119.20. This trade represents a 15.78% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Jagtar Singh Chaudhry sold 2,843 shares of Zscaler stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total value of $656,221.26. Following the completion of the sale, the chief executive officer directly owned 347,857 shares of the company’s stock, valued at $80,292,352.74. This trade represents a 0.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 19,350 shares of company stock valued at $4,471,509 over the last three months. Insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

Several institutional investors and hedge funds have recently made changes to their positions in ZS. Binnacle Investments Inc bought a new position in shares of Zscaler in the 3rd quarter worth $25,000. Tradewinds Capital Management LLC increased its holdings in Zscaler by 145.7% in the third quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock valued at $26,000 after purchasing an additional 51 shares during the last quarter. Root Financial Partners LLC acquired a new position in Zscaler in the third quarter valued at about $26,000. McIlrath & Eck LLC bought a new position in Zscaler during the third quarter worth about $29,000. Finally, Quaker Wealth Management LLC boosted its holdings in Zscaler by 200.0% during the second quarter. Quaker Wealth Management LLC now owns 97 shares of the company’s stock worth $30,000 after buying an additional 194 shares during the last quarter. Institutional investors own 46.45% of the company’s stock.

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.