Zscaler Sees Unusually High Options Volume (NASDAQ:ZS)

Zscaler, Inc. (NASDAQ:ZS) was the recipient of unusually large options trading on Monday. Stock traders purchased 48,238 call options on the company. This is an increase of approximately 55% compared to the typical daily volume of 31,072 call options.

Wall Street Analyst Weigh In

ZS has been the subject of several analyst reports. TD Cowen reissued a “buy” rating on shares of Zscaler in a research note on Wednesday, May 27th. HC Wainwright raised shares of Zscaler from a “buy” rating to a “buy” rating in a research note on Monday, May 18th. Rosenblatt Securities lowered their price objective on shares of Zscaler from $223.00 to $200.00 and set a “buy” rating for the company in a research note on Wednesday, May 27th. Sanford C. Bernstein lowered their price objective on shares of Zscaler from $228.00 to $224.00 and set an “outperform” rating for the company in a research note on Wednesday, May 27th. Finally, Barclays lowered their price objective on shares of Zscaler from $180.00 to $170.00 and set an “overweight” rating for the company in a research note on Wednesday, May 27th. Thirty-three research 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. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $216.03.

Zscaler Stock Up 9.9%

Shares of Zscaler stock traded up $13.78 during trading on Monday, reaching $153.51. The company had a trading volume of 6,642,664 shares, compared to its average volume of 3,443,377. The company has a market cap of $24.82 billion, a price-to-earnings ratio of -319.89 and a beta of 0.97. The firm’s fifty day moving average is $144.36 and its 200-day moving average is $188.63. 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 has a fifty-two week low of $114.63 and a fifty-two week high of $336.99.

Zscaler (NASDAQ:ZS) last issued its 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 analyst estimates of $835.14 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The company’s revenue for the quarter was up 25.4% on a year-over-year basis. During the same quarter in the prior 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. On average, analysts anticipate that Zscaler will post -0.03 EPS for the current year.

Insider Activity

In related news, CEO Jagtar Singh Chaudhry sold 1,941 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 value of $303,941.19. Following the completion of the sale, the chief executive officer owned 345,916 shares in the company, valued at $54,166,986.44. This trade represents a 0.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Robert Schlossman sold 2,263 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 $354,363.17. Following the completion of the sale, the insider owned 72,390 shares of the company’s stock, valued at approximately $11,335,550.10. The trade was a 3.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 12,130 shares of company stock valued at $1,892,487. Insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On Zscaler

Several large investors have recently made changes to their positions in ZS. Binnacle Investments Inc purchased a new stake in shares of Zscaler in the 3rd quarter valued at approximately $25,000. Picton Mahoney Asset Management purchased a new stake in Zscaler in the 3rd quarter worth approximately $30,000. AlphaCentric Advisors LLC purchased a new stake in Zscaler in the 4th quarter worth approximately $29,000. University of Texas Texas AM Investment Management Co. purchased a new stake in Zscaler in the 4th quarter worth approximately $30,000. Finally, Mcguire Capital Advisors Inc. purchased a new stake in Zscaler in the 4th quarter worth approximately $32,000. Institutional investors and hedge funds 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.