Traders Purchase High Volume of Put Options on Zscaler (NASDAQ:ZS)

Zscaler, Inc. (NASDAQ:ZS) saw some unusual options trading activity on Wednesday. Investors bought 40,282 put options on the stock. This represents an increase of approximately 85% compared to the average volume of 21,754 put options.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Wells Fargo initiated coverage with an “Overweight” / $200 price target (and other outlets report a “strong‑buy” view), signaling fresh institutional conviction and providing upside vs. the current level. This likely supports buying interest. Zscaler receives Overweight rating as Wells Fargo initiates coverage
• Positive Sentiment: Zscaler reported stronger‑than‑expected FQ2 2026 results (revenue ~$816M, ARR +25% to $3.4B) and raised FY guidance, validating enterprise demand for its cloud security platform and supporting longer‑term growth expectations. Zscaler (ZS) Reports Record FQ2 2026 Revenue Driven by Massive Enterprise Adoption
• Positive Sentiment: Strategic partnerships and product expansion — notably an AI & Cyber Threat Research Center with Bharti Airtel and an expanded TCS partnership for AI‑powered solutions — bolster growth avenues in large and fast‑growing markets (India and enterprise AI/security). Zscaler Airtel AI Research Hub Tests Growth Potential Versus Rising Losses TCS Expands Strategic Partnership with Zscaler
• Neutral Sentiment: Media pieces are dissecting whether Wall Street’s bullish analyst consensus is a reliable buy signal; these narratives can create short‑term headline volatility but don’t change fundamentals. Is It Worth Investing in Zscaler (ZS) Based on Wall Street’s Bullish Views? Zacks analyst commentary
• Neutral Sentiment: Zscaler presented at the Morgan Stanley TMT conference; such investor events help reiterate strategy and can influence sentiment if management provides new guidance or color. Zscaler presentation transcript
• Negative Sentiment: Unusually high put‑option activity (≈40,282 puts, +85% vs. typical volume) suggests elevated bearish positioning or hedging by traders, which can amplify downside pressure or volatility near-term.
• Negative Sentiment: Citigroup has lowered its expectations for ZS, reflecting some sell‑side concern about near‑term valuation or growth risk; downward analyst revisions can weigh on the stock until offset by new positive catalysts. Citigroup Has Lowered Expectations for Zscaler

Insider Buying and Selling

In related news, CEO Jagtar Singh Chaudhry sold 2,843 shares of the company’s stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total value of $656,221.26. Following the completion of the sale, the chief executive officer owned 347,857 shares of the company’s stock, valued at $80,292,352.74. This represents a 0.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Robert Schlossman sold 2,349 shares of the stock in a transaction dated Wednesday, December 17th. The shares were sold at an average price of $232.79, for a total transaction of $546,823.71. Following the completion of the transaction, the insider owned 74,653 shares of the company’s stock, valued at $17,378,471.87. This represents a 3.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 19,350 shares of company stock valued at $4,471,509 in the last ninety days. Insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On Zscaler

Hedge funds and other institutional investors have recently modified their holdings of the business. Westpac Banking Corp grew its stake in shares of Zscaler by 919.0% during 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 purchased a new position in shares of Zscaler in the second quarter worth approximately $1,592,000. Mackenzie Financial Corp grew its position in Zscaler by 133.6% during the second quarter. Mackenzie Financial Corp now owns 14,780 shares of the company’s stock valued at $4,640,000 after buying an additional 8,454 shares during the period. Schroder Investment Management Group increased its holdings in Zscaler by 11.5% during the second quarter. Schroder Investment Management Group now owns 164,061 shares of the company’s stock valued at $51,505,000 after buying an additional 16,868 shares during the last quarter. Finally, Ensign Peak Advisors Inc raised its position in Zscaler by 9.9% in the second quarter. Ensign Peak Advisors Inc now owns 395,391 shares of the company’s stock worth $124,129,000 after acquiring an additional 35,770 shares during the period. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Analyst Ratings Changes

A number of equities research analysts have issued reports on the company. Scotiabank decreased their target price on Zscaler from $334.00 to $320.00 and set a “sector outperform” rating for the company in a research report on Wednesday, November 26th. Wedbush lifted their price objective on Zscaler from $330.00 to $350.00 and gave the company an “outperform” rating in a report on Monday, November 10th. Loop Capital set a $320.00 target price on shares of Zscaler in a report on Thursday, December 11th. Mizuho dropped their price target on Zscaler from $265.00 to $250.00 and set an “outperform” rating for the company in a report on Friday, February 27th. Finally, Cantor Fitzgerald dropped their target price on shares of Zscaler from $365.00 to $300.00 and set an “overweight” rating for the company in a research note on Tuesday, February 24th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, six have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $267.92.

Zscaler Stock Performance

NASDAQ ZS opened at $156.21 on Thursday. The stock has a fifty day simple moving average of $194.30 and a 200 day simple moving average of $252.51. 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 company has a market capitalization of $25.12 billion, a price-to-earnings ratio of -371.93, a PEG ratio of 642.19 and a beta of 1.07. Zscaler has a twelve month low of $140.56 and a twelve month high of $336.99.

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