Zscaler (NASDAQ:ZS) Stock Price Down 2.2% – Here’s What Happened

Zscaler, Inc. (NASDAQ:ZS)’s share price was down 2.2% during trading on Wednesday . The stock traded as low as $123.38 and last traded at $124.38. Approximately 3,101,240 shares changed hands during mid-day trading, a decline of 14% from the average daily volume of 3,609,885 shares. The stock had previously closed at $127.23.

Analyst Ratings Changes

Several equities analysts have commented on ZS shares. BMO Capital Markets cut their price target on 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 cut their price target on Zscaler from $225.00 to $215.00 and set a “buy” rating for the company in a report on Wednesday, May 27th. The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $179.00 price target on shares of Zscaler in a report on Wednesday, May 27th. Truist Financial set a $210.00 target price on Zscaler in a report on Wednesday, May 27th. Finally, Royal Bank Of Canada reissued an “outperform” rating and issued a $200.00 target price on shares of Zscaler in a report on Wednesday, June 10th. Thirty-four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $214.33.

Zscaler Price Performance

The stock has a fifty day moving average of $142.16 and a two-hundred day moving average of $175.11. The stock has a market capitalization of $20.11 billion, a price-to-earnings ratio of -259.12, a PEG ratio of 81.54 and a beta of 0.97. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72.

Zscaler (NASDAQ:ZS) last released its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, beating analysts’ consensus estimates of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The firm had revenue of $850.48 million during the quarter, compared to analysts’ expectations of $835.14 million. During the same period last year, the firm posted $0.84 EPS. The business’s revenue was up 25.4% on a year-over-year basis. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. As a group, equities research analysts forecast that Zscaler, Inc. will post 0.11 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Westpac Banking Corp boosted its position in 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 buying an additional 9,006 shares during the last quarter. Korea Investment CORP boosted its position in Zscaler by 24.0% in the 3rd quarter. Korea Investment CORP now owns 98,370 shares of the company’s stock valued at $29,478,000 after buying an additional 19,026 shares during the last quarter. Qsemble Capital Management LP boosted its position in Zscaler by 105.5% in the 4th quarter. Qsemble Capital Management LP now owns 15,773 shares of the company’s stock valued at $3,548,000 after buying an additional 8,099 shares during the last quarter. Oxbow Advisors LLC acquired a new position in shares of Zscaler in the 4th quarter valued at $2,939,000. Finally, Vinva Investment Management Ltd lifted its stake in shares of Zscaler by 136.1% in the 3rd quarter. Vinva Investment Management Ltd now owns 11,347 shares of the company’s stock valued at $3,400,000 after purchasing an additional 6,541 shares during the period. 46.45% of the stock is currently owned by institutional investors.

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.