Zscaler Sees Unusually High Options Volume (NASDAQ:ZS)

Zscaler, Inc. (NASDAQ:ZS) saw some unusual options trading activity on Thursday. Stock investors bought 47,656 put options on the stock. This is an increase of approximately 74% compared to the typical volume of 27,414 put options.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Strategic partnership — Zscaler and Bharti Airtel launched an AI & Cyber Threat Research Center to strengthen APAC presence and AI/security credentials. Zscaler and Bharti Airtel announce launch of AI & Cyber Threat Research Center
• Positive Sentiment: Product expansion — Zscaler expanded global data‑sovereignty controls on its Zero Trust Exchange, which can help win regulated customers and support revenue retention/growth. Zscaler (ZS) Expands Global Data Sovereignty Capabilities on Zero Trust Exchange
• Positive Sentiment: Analyst stance remains constructive — the consensus across analysts is roughly a “Moderate Buy,” which can underpin investor demand despite recent downgrades. Zscaler, Inc. (NASDAQ:ZS) Receives Average Recommendation of “Moderate Buy” from Analysts
• Neutral Sentiment: Industry comparison — a Zacks piece contrasts Zscaler with CrowdStrike, noting CrowdStrike’s stronger ARR and Falcon Flex adoption while flagging margin pressure at Zscaler from newer AI offerings; useful context but not an immediate catalyst. CrowdStrike vs. Zscaler: Which Cybersecurity Stock Has an Edge?
• Negative Sentiment: Unusually heavy put buying — reports show a large uptick in put option volume (~47,656 puts, ~74% above average), signalling elevated bearish bets and potential for amplified downside volatility. Zscaler Target of Unusually High Options Trading (NASDAQ:ZS)
• Negative Sentiment: Insider selling by multiple executives — recent Form 4 filings show CEO, CFO and other senior execs sold shares in mid‑March, a short‑term negative signal for sentiment even if sales may be routine. SEC Insider Sale Filing (example)
• Negative Sentiment: Analyst price‑target trim — Oppenheimer trimmed its ZS price target (maintained Outperform), reflecting valuation pressure in cybersecurity; contributes to near‑term weakness. Zscaler, Inc. (ZS) Price Target Trimmed at Oppenheimer on Cybersecurity Valuation Pressure

Wall Street Analyst Weigh In

Several research firms recently commented on ZS. Piper Sandler reduced their target price on Zscaler from $260.00 to $185.00 and set a “neutral” rating for the company in a research report on Friday, February 27th. JPMorgan Chase & Co. lowered their price target on Zscaler from $354.00 to $267.00 and set an “overweight” rating on the stock in a report on Friday, February 20th. Wells Fargo & Company began coverage on Zscaler in a research report on Tuesday, March 3rd. They set an “overweight” rating and a $200.00 price target for the company. TD Cowen cut their price objective on Zscaler from $330.00 to $260.00 and set a “buy” rating for the company in a report on Tuesday, February 24th. Finally, Robert W. Baird decreased their price objective on shares of Zscaler from $360.00 to $300.00 and set an “outperform” rating on the stock in a research report on Monday, February 23rd. Two analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Zscaler presently has an average rating of “Moderate Buy” and a consensus target price of $267.13.

Insider Buying and Selling at Zscaler

In other 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 transaction of $389,595.92. Following the completion of the transaction, the executive vice president directly owned 67,906 shares in the company, valued at $10,633,400.54. The trade was a 3.53% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Kevin Rubin sold 1,682 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 transaction of $263,384.38. Following the transaction, the chief financial officer owned 46,479 shares of the company’s stock, valued at $7,278,146.61. This trade represents a 3.49% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 12,783 shares of company stock worth $2,040,536 in the last ninety days. Insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On Zscaler

A number of hedge funds have recently made changes to their positions in ZS. Binnacle Investments Inc bought a new position in shares of Zscaler during the 3rd quarter valued at $25,000. Tradewinds Capital Management LLC lifted its stake in Zscaler by 145.7% in the third quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock worth $26,000 after purchasing an additional 51 shares during the last quarter. Root Financial Partners LLC bought a new stake in Zscaler in the third quarter worth $26,000. McIlrath & Eck LLC purchased a new stake in Zscaler during the third quarter valued at about $29,000. Finally, AlphaCentric Advisors LLC purchased a new stake in Zscaler during the fourth quarter valued at about $29,000. 46.45% of the stock is currently owned by institutional investors.

Zscaler Trading Down 0.3%

NASDAQ ZS opened at $155.53 on Friday. The company has a quick ratio of 1.90, a current ratio of 1.90 and a debt-to-equity ratio of 0.78. The stock’s 50-day simple moving average is $179.18 and its two-hundred day simple moving average is $243.74. Zscaler has a twelve month low of $140.56 and a twelve month high of $336.99. The company has a market capitalization of $25.01 billion, a price-to-earnings ratio of -370.31 and a beta of 1.07.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data on Thursday, February 26th. The company reported $1.01 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.89 by $0.12. The firm had revenue of $815.75 million during the quarter, compared to analysts’ expectations of $798.92 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The company’s revenue for the quarter was up 25.9% compared to the same quarter last year. During the same period in the prior year, the business earned $0.78 EPS. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. Research analysts forecast that Zscaler will post -0.1 EPS for the current fiscal year.

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.