Zscaler (NASDAQ:ZS) Trading Up 6.8% – What’s Next?

Zscaler, Inc. (NASDAQ:ZS)’s stock price rose 6.8% during trading on Friday . The company traded as high as $132.54 and last traded at $132.26. 3,662,766 shares were traded during trading, a decline of 1% from the average session volume of 3,684,102 shares. The stock had previously closed at $123.80.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler announced a multi-year partnership with Aston Martin Aramco Formula One Team, which will use Zscaler’s Zero Trust Exchange platform to secure sensitive design, strategy, and race data. Article Title
• Positive Sentiment: Zscaler CEO Jay Chaudhry highlighted AI as a major cybersecurity opportunity, reinforcing the company’s positioning in a fast-growing market. Article Title
• Positive Sentiment: Another report said AI could create the biggest cybersecurity opportunity in years, which supports the investment case for Zscaler’s AI-era security platform. Article Title
• Neutral Sentiment: Market commentary noted Zscaler had only a modest post-earnings move, suggesting traders are still assessing the company’s near-term outlook. Article Title
• Neutral Sentiment: Pomerantz LLP said it is investigating claims on behalf of Zscaler investors, which may add headline risk but does not by itself confirm wrongdoing. Article Title
• Negative Sentiment: Zscaler CFO Kevin Rubin sold 3,000 shares under a pre-arranged trading plan, which can still weigh on sentiment even though the sale was routine. Article Title

Analyst Ratings Changes

Several brokerages recently issued reports on ZS. TD Cowen reissued a “buy” rating on shares of Zscaler in a research note on Wednesday, May 27th. Needham & Company LLC reaffirmed a “buy” rating and set a $180.00 target price on shares of Zscaler in a research report on Wednesday, June 10th. Piper Sandler lowered their target price on Zscaler from $185.00 to $160.00 and set a “neutral” rating for the company in a report on Wednesday, May 27th. BMO Capital Markets dropped their price target on Zscaler from $210.00 to $178.00 and set an “outperform” rating on the stock in a research report on Wednesday, May 27th. Finally, Zacks Research upgraded Zscaler from a “strong sell” rating to a “hold” rating in a research note on Wednesday, May 27th. Thirty-four research 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. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $213.97.

Zscaler Stock Performance

The company has a debt-to-equity ratio of 0.72, a current ratio of 1.86 and a quick ratio of 1.86. The company has a market cap of $21.39 billion, a PE ratio of -275.54, a price-to-earnings-growth ratio of 82.69 and a beta of 0.97. The business has a fifty day simple moving average of $141.59 and a two-hundred day simple moving average of $168.93.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.01 by $0.07. The business had revenue of $850.48 million for the quarter, compared to the consensus estimate of $835.14 million. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The business’s revenue was up 25.4% compared to the same quarter last year. During the same period last year, the business posted $0.84 EPS. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Research analysts anticipate that Zscaler, Inc. will post 0.11 earnings per share for the current year.

Insider Buying and Selling

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,878 shares of the stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total transaction of $363,865.54. Following the completion of the sale, the chief executive officer directly owned 343,038 shares of the company’s stock, valued at approximately $43,370,294.34. This represents a 0.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Adam Geller sold 2,817 shares of the firm’s stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $122.60, for a total transaction of $345,364.20. Following the completion of the sale, the insider owned 42,314 shares in the company, valued at $5,187,696.40. This represents a 6.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 15,644 shares of company stock worth $1,960,287 over the last ninety days. 17.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the company. Vanguard Group Inc. grew its holdings in Zscaler by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 11,423,424 shares of the company’s stock worth $2,569,357,000 after purchasing an additional 55,521 shares during the last quarter. Groupama Asset Managment lifted its holdings in shares of Zscaler by 76,352.6% during the 3rd quarter. Groupama Asset Managment now owns 4,750,000 shares of the company’s stock valued at $1,423,385,000 after purchasing an additional 4,743,787 shares during the last quarter. First Trust Advisors LP lifted its holdings in shares of Zscaler by 36.2% during the 1st quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock valued at $493,635,000 after purchasing an additional 935,781 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its position 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 purchasing an additional 777,414 shares in the last quarter. Finally, State Street Corp boosted its position 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 purchasing an additional 77,800 shares in the last quarter. 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.