Zscaler (NASDAQ:ZS) Shares Gap Down – What’s Next?

Zscaler, Inc. (NASDAQ:ZS) gapped down prior to trading on Friday . The stock had previously closed at $141.50, but opened at $133.79. Zscaler shares last traded at $132.5470, with a volume of 1,532,790 shares trading hands.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the company. Berenberg Bank lowered their price objective on Zscaler from $390.00 to $320.00 and set a “buy” rating for the company in a research report on Friday, February 27th. JPMorgan Chase & Co. reduced their target price on Zscaler from $354.00 to $267.00 and set an “overweight” rating on the stock in a report on Friday, February 20th. Oppenheimer decreased their target price 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. Loop Capital set a $320.00 price target on shares of Zscaler in a report on Thursday, December 11th. Finally, Canaccord Genuity Group dropped their price target on shares of Zscaler from $340.00 to $275.00 and set a “buy” rating on the stock in a research report on Friday, February 27th. Two analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $267.13.

Zscaler Trading Down 5.9%

The company has a debt-to-equity ratio of 0.78, a current ratio of 1.90 and a quick ratio of 1.90. The firm has a fifty day simple moving average of $170.54 and a 200-day simple moving average of $237.95. The firm has a market cap of $21.41 billion, a P/E ratio of -317.05 and a beta of 1.07.

Zscaler (NASDAQ:ZS) last issued its earnings results on Thursday, February 26th. The company reported $1.01 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 company had revenue of $815.75 million for the quarter, compared to analysts’ expectations of $798.92 million. During the same period last year, the business earned $0.78 EPS. Zscaler’s quarterly 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 year.

Insider Transactions at Zscaler

In related news, CFO Kevin Rubin sold 1,682 shares of the company’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $263,384.38. Following the sale, the chief financial officer owned 46,479 shares in the company, valued at $7,278,146.61. This represents a 3.49% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Raj Judge sold 2,488 shares of the firm’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $389,595.92. Following the completion of the transaction, the executive vice president directly owned 67,906 shares in the company, valued at approximately $10,633,400.54. The trade was a 3.53% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 12,783 shares of company stock valued at $2,040,536. Corporate insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

Institutional investors and hedge funds have recently modified their holdings of the stock. Binnacle Investments Inc purchased a new position in shares of Zscaler during the third quarter valued at approximately $25,000. Tradewinds Capital Management LLC raised its position in Zscaler by 145.7% in the 3rd quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock valued at $26,000 after buying an additional 51 shares during the last quarter. Root Financial Partners LLC bought a new position in Zscaler during the 3rd quarter valued at $26,000. McIlrath & Eck LLC purchased a new position in Zscaler during the 3rd quarter worth $29,000. Finally, AlphaCentric Advisors LLC purchased a new position in Zscaler during the 4th quarter worth $29,000. 46.45% of the stock is owned by hedge funds and other 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.