Zscaler (NASDAQ:ZS) Shares Down 7.3% – Time to Sell?

Zscaler, Inc. (NASDAQ:ZS)’s stock price traded down 7.3% on Tuesday . The company 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.

Analysts Set New Price Targets

ZS has been the topic of several analyst reports. BTIG Research decreased their target price on shares of Zscaler from $365.00 to $209.00 and set a “buy” rating on the stock in a research note on Tuesday, February 24th. Oppenheimer dropped their price target on shares of Zscaler from $280.00 to $250.00 and set an “outperform” rating for the company in a research report on Tuesday, March 10th. Wells Fargo & Company initiated coverage on shares of Zscaler in a report on Tuesday, March 3rd. They issued an “overweight” rating and a $200.00 price target on the stock. Zacks Research cut shares of Zscaler from a “hold” rating to a “strong sell” rating in a research report on Thursday, February 26th. Finally, 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 report on Tuesday, February 17th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Zscaler presently has a consensus rating of “Moderate Buy” and an average target price of $267.13.

Zscaler Trading Down 8.2%

The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.90 and a current ratio of 1.90. The stock’s 50-day simple moving average is $176.58 and its 200-day simple moving average is $241.63. The firm has a market capitalization of $22.41 billion, a PE ratio of -331.79 and a beta of 1.07.

Zscaler (NASDAQ:ZS) last posted its earnings results on Thursday, February 26th. The company reported $1.01 EPS for the quarter, topping the consensus estimate of $0.89 by $0.12. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The firm had revenue of $815.75 million during the quarter, compared to analysts’ expectations of $798.92 million. The company’s quarterly revenue was up 25.9% compared to the same quarter last year. During the same period last year, the company posted $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. As a group, sell-side analysts expect that Zscaler, Inc. will post -0.1 EPS for the current fiscal year.

Insider Buying and Selling

In other Zscaler news, EVP Raj Judge sold 2,488 shares of the company’s stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $389,595.92. Following the transaction, the executive vice president owned 67,906 shares in the company, valued at approximately $10,633,400.54. This represents a 3.53% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Kevin Rubin sold 1,682 shares of the stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $263,384.38. Following the completion of the transaction, the chief financial officer directly owned 46,479 shares of the company’s stock, valued at $7,278,146.61. This represents a 3.49% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 12,783 shares of company stock valued at $2,040,536 over the last quarter. 17.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Zscaler

Several hedge funds have recently made changes to their positions in ZS. Vanguard Group Inc. lifted its position in Zscaler by 0.5% during the fourth quarter. Vanguard Group Inc. now owns 11,423,424 shares of the company’s stock valued at $2,569,357,000 after buying an additional 55,521 shares during the period. Groupama Asset Managment grew its position in shares of Zscaler by 76,352.6% in 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 during the period. First Trust Advisors LP grew its position in shares of Zscaler by 15.9% in the 4th quarter. First Trust Advisors LP now owns 2,582,897 shares of the company’s stock worth $580,945,000 after buying an additional 354,763 shares during the period. Price T Rowe Associates Inc. MD increased 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 worth $578,576,000 after acquiring an additional 777,414 shares in the last quarter. Finally, State Street Corp increased its stake in shares of Zscaler by 3.4% in the 4th quarter. State Street Corp now owns 2,337,604 shares of the company’s stock worth $525,774,000 after acquiring an additional 77,800 shares in the last quarter. 46.45% of the stock is currently owned by institutional investors.

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.