Zscaler (NASDAQ:ZS) Shares Up 7.8% – Here’s What Happened

Zscaler, Inc. (NASDAQ:ZS)’s share price was up 7.8% on Tuesday . The company traded as high as $150.52 and last traded at $152.8560. 867,325 shares were traded during mid-day trading, a decline of 76% from the average daily volume of 3,598,740 shares. The stock had previously closed at $141.82.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Cybersecurity stocks, including Zscaler, were lifted by a joint warning from U.S. and international agencies about Russian cyber threats, reinforcing demand for security platforms. Why Are Zscaler (ZS) Shares Soaring Today
• Positive Sentiment: Analyst-style coverage highlighted Zscaler’s Zero Trust adoption and relatively lower valuation versus Palo Alto Networks, suggesting it may have room for further upside. PANW vs. ZS: Which Cybersecurity Stock Has an Edge Right Now?
• Positive Sentiment: Cybersecurity firms integrating AI into their platforms were described as long-term growth beneficiaries as cyberattacks intensify, supporting the sector’s outlook. Top Cybersecurity Stocks to Buy Now as AI Changes Tech Defense
• Neutral Sentiment: A marketing leadership hire, with Nikhil Mehrotra joining as Senior Director – Marketing, is a routine personnel change with limited near-term stock impact. Nikhil Mehrotra joins Zscaler as Senior Director – Marketing
• Neutral Sentiment: Stocktwits commentary and polling around cybersecurity names reflected broad investor interest, but not a company-specific catalyst for Zscaler. CRWD, PANW, NET, ZS: One Cybersecurity Stock Won Over Retail Investors
• Negative Sentiment: News that Zscaler stock had slid in the latest session suggests some investors are taking profits after the recent cybersecurity-driven spike. Zscaler (ZS) Stock Slides as Market Rises: Facts to Know Before You Trade
• Negative Sentiment: A shareholder investigation notice from Bragar Eagel & Squire could add legal overhang and weigh on sentiment. ZSCALER STOCKHOLDER ALERT

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on ZS. Wedbush reiterated an “outperform” rating and issued a $220.00 target price on shares of Zscaler in a research note on Wednesday, June 10th. TD Cowen reissued a “buy” rating on shares of Zscaler in a research report on Wednesday, May 27th. BMO Capital Markets decreased their price target on shares of Zscaler from $210.00 to $178.00 and set an “outperform” rating for the company in a report on Wednesday, May 27th. B. Riley Financial lowered their price target on Zscaler from $225.00 to $215.00 and set a “buy” rating on the stock in a research report on Wednesday, May 27th. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of Zscaler in a research note on Tuesday, June 9th. Thirty-four investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $213.97.

Zscaler Price Performance

The company has a market cap of $23.96 billion, a P/E ratio of -308.72, a P/E/G ratio of 87.16 and a beta of 0.96. The stock has a 50-day simple moving average of $144.02 and a 200 day simple moving average of $160.33. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86.

Zscaler (NASDAQ:ZS) last released its quarterly earnings data 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 analysts’ expectations of $835.14 million. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.Zscaler’s quarterly revenue was up 25.4% on a year-over-year basis. During the same period in the previous year, the business posted $0.84 earnings per share. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. On average, equities analysts expect that Zscaler, Inc. will post 0.12 EPS for the current year.

Insider Buying and Selling at Zscaler

In other news, insider Adam Geller sold 2,817 shares of the stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $122.60, for a total value of $345,364.20. Following the completion of the transaction, the insider owned 42,314 shares in the company, valued at approximately $5,187,696.40. This represents a 6.24% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jagtar Singh Chaudhry sold 2,878 shares of the firm’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $363,865.54. Following the transaction, the chief executive officer directly owned 343,038 shares of the company’s stock, valued at $43,370,294.34. The trade was a 0.83% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 15,766 shares of company stock worth $1,978,587. Corporate insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On Zscaler

A number of institutional investors have recently added to or reduced their stakes in the stock. Binnacle Investments Inc bought a new stake in Zscaler in the third quarter valued at $25,000. AlphaCentric Advisors LLC bought a new position in Zscaler during the 4th quarter valued at about $29,000. University of Texas Texas AM Investment Management Co. acquired a new position in Zscaler in the fourth quarter valued at about $30,000. Mcguire Capital Advisors Inc. bought a new stake in Zscaler during the fourth quarter worth about $32,000. Finally, Western Wealth Management LLC acquired a new stake in shares of Zscaler during the first quarter worth approximately $33,000. 46.45% of the stock is owned by institutional investors and hedge funds.

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.