Zscaler (NASDAQ:ZS) Reaches New 52-Week Low on Analyst Downgrade

Shares of Zscaler, Inc. (NASDAQ:ZS) reached a new 52-week low during trading on Friday after Canaccord Genuity Group lowered their price target on the stock from $340.00 to $275.00. Canaccord Genuity Group currently has a buy rating on the stock. Zscaler traded as low as $141.29 and last traded at $141.8860, with a volume of 4528331 shares changing hands. The stock had previously closed at $167.36.

Other analysts have also issued research reports about the company. Citizens Jmp cut their target price on Zscaler from $355.00 to $290.00 and set a “market outperform” rating on the stock in a research report on Friday. Robert W. Baird dropped their price objective on Zscaler from $360.00 to $300.00 and set an “outperform” rating for the company in a research note on Monday, February 23rd. Stifel Nicolaus decreased their target price on Zscaler from $330.00 to $320.00 and set a “buy” rating on the stock in a research note on Wednesday, November 26th. Bank of America lowered their target price on Zscaler from $355.00 to $335.00 and set a “buy” rating for the company in a report on Wednesday, November 26th. Finally, Wedbush boosted their price target on shares of Zscaler from $330.00 to $350.00 and gave the stock an “outperform” rating in a research note on Monday, November 10th. One research analyst has rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $274.37.

Insider Activity

In related news, insider Robert Schlossman sold 2,349 shares of the firm’s stock in a transaction that occurred on Wednesday, December 17th. The shares were sold at an average price of $232.79, for a total value of $546,823.71. Following the transaction, the insider owned 74,653 shares in the company, valued at approximately $17,378,471.87. This trade represents a 3.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Raj Judge sold 3,438 shares of the business’s stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total transaction of $793,559.16. Following the sale, the executive vice president owned 70,394 shares of the company’s stock, valued at approximately $16,248,343.08. This represents a 4.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 19,350 shares of company stock worth $4,471,509. Insiders own 17.20% of the company’s stock.

Key Stories Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Q2 results beat: adjusted EPS $1.01 vs. $0.89 est., revenue $815.8M vs. ~$799M est., and ARR grew ~25% year/year — signals demand momentum. GlobeNewswire: Q2 Results
• Positive Sentiment: Management is pitching AI security growth and new initiatives (AI Guard, agentic security, India AI/Cyber center with Airtel) as durable secular drivers that expand TAM beyond seat-based SaaS. CFO Interview Airtel AI Center
• Neutral Sentiment: Management issued updated forward guidance and commentary (Q3 EPS range and FY EPS range were provided), creating mixed signals that markets are parsing. Earnings Highlights
• Neutral Sentiment: Executives (CEO & CFO) gave interviews and the full call transcript is available — useful for investors wanting detail on churn, acquisitions and how AI monetization will scale. Earnings Call Transcript
• Negative Sentiment: Wider GAAP loss and higher spending: the company posted a larger net loss driven by increased sales, marketing and R&D, which pressured investor sentiment. Reuters: Wider Loss
• Negative Sentiment: Mixed/uncertain revenue outlook commentary: some outlets reported the company lowered aspects of its revenue outlook, creating confusion and weighing on the stock despite EPS beats. Benzinga: Revenue Guidance Report
• Negative Sentiment: Broad analyst price‑target cuts today from multiple firms (Canaccord, Morgan Stanley, Oppenheimer, Berenberg, Needham, and others) have amplified selling pressure even as many kept “buy/outperform” stances — the cuts compress perception of near‑term upside. MarketScreener: Analyst Cuts
• Negative Sentiment: Market reaction: investors appear to be focusing on margin/expense trajectory, competitive pressure and near-term revenue clarity rather than the company’s AI growth story — producing the stock decline. Seeking Alpha: Market Reaction

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in ZS. Westpac Banking Corp boosted its position in shares of Zscaler by 919.0% in the 3rd quarter. Westpac Banking Corp now owns 9,986 shares of the company’s stock valued at $2,992,000 after purchasing an additional 9,006 shares during the period. VestGen Advisors LLC acquired a new stake in shares of Zscaler during the second quarter valued at approximately $1,592,000. Mackenzie Financial Corp lifted its position in shares of Zscaler by 133.6% in the 2nd quarter. Mackenzie Financial Corp now owns 14,780 shares of the company’s stock valued at $4,640,000 after acquiring an additional 8,454 shares in the last quarter. Schroder Investment Management Group boosted its stake in Zscaler by 11.5% in the 2nd quarter. Schroder Investment Management Group now owns 164,061 shares of the company’s stock worth $51,505,000 after purchasing an additional 16,868 shares during the period. Finally, Ensign Peak Advisors Inc boosted its stake in Zscaler by 9.9% in the 2nd quarter. Ensign Peak Advisors Inc now owns 395,391 shares of the company’s stock worth $124,129,000 after purchasing an additional 35,770 shares during the period. 46.45% of the stock is currently owned by hedge funds and other institutional investors.

Zscaler Stock Performance

The firm’s 50-day simple moving average is $198.92 and its two-hundred day simple moving average is $255.20. 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 $23.44 billion, a PE ratio of -349.98, a PEG ratio of 341.17 and a beta of 1.02.

Zscaler (NASDAQ:ZS) last issued 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 positive return on equity of 0.06% and a negative net margin of 2.25%.The business had revenue of $815.75 million during the quarter, compared to analysts’ expectations of $798.92 million. During the same quarter last year, the firm posted $0.78 earnings per share. Zscaler’s revenue was up 25.9% compared to the same quarter last year. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. On average, equities research analysts expect that Zscaler, Inc. will post -0.1 earnings per share for the current fiscal year.

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.