Zscaler (NASDAQ:ZS) Sees Large Volume Increase – Time to Buy?

Zscaler, Inc. (NASDAQ:ZS) shares saw unusually-high trading volume on Thursday . Approximately 2,370,446 shares traded hands during mid-day trading, a decline of 26% from the previous session’s volume of 3,184,495 shares.The stock last traded at $123.5680 and had previously closed at $126.41.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler delivered a Q3 beat, with revenue up about 25% year over year and EPS above expectations, showing continued demand for its cloud security platform. Zscaler Announces Strong Third-Quarter Fiscal 2026 Results
• Positive Sentiment: Management lifted FY2026 EPS guidance, signaling confidence in profitability even as near-term revenue growth slows. Zscaler Q3 Earnings and Revenues Top Estimates
• Neutral Sentiment: Analysts trimmed price targets after the report, but many kept bullish ratings, suggesting the selloff may be more about guidance than a broken long-term thesis. Analyst target updates
• Negative Sentiment: Q4 revenue guidance was slightly below Wall Street expectations, which sparked a sharp selloff and drove the stock lower. Reuters: Zscaler sees downbeat quarterly revenue as competition heats up in cybersecurity market
• Negative Sentiment: Investors also worried about sales-team turnover and rising infrastructure costs tied to AI, which added to concerns about future growth and margins. CNBC: Zscaler tanks 31% for worst day ever on ‘prudent’ guidance, sales shakeup

Analyst Ratings Changes

A number of brokerages have recently issued reports on ZS. Barclays dropped their price target on shares of Zscaler from $180.00 to $170.00 and set an “overweight” rating on the stock in a research note on Wednesday. Rosenblatt Securities decreased their price objective on shares of Zscaler from $223.00 to $200.00 and set a “buy” rating on the stock in a report on Wednesday. Cantor Fitzgerald decreased their price objective on shares of Zscaler from $300.00 to $225.00 and set an “overweight” rating on the stock in a report on Wednesday. Evercore set a $155.00 price target on shares of Zscaler and gave the company an “in-line” rating in a report on Wednesday. Finally, Canaccord Genuity Group reduced their target price on shares of Zscaler from $275.00 to $210.00 and set a “buy” rating on the stock in a report on Wednesday. Thirty-two research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $216.08.

Zscaler Stock Performance

The company has a market capitalization of $20.49 billion, a price-to-earnings ratio of -265.23 and a beta of 0.96. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.90 and a current ratio of 1.90. The company’s fifty day simple moving average is $145.21 and its two-hundred day simple moving average is $191.30.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, beating the consensus estimate of $1.01 by $0.07. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.39%. The business had revenue of $850.48 million during the quarter, compared to analyst estimates of $835.14 million. During the same period in the previous year, the business posted $0.84 EPS. The company’s quarterly 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. Equities research analysts predict that Zscaler, Inc. will post -0.03 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO Kevin Rubin sold 1,682 shares of the business’s stock in a transaction that occurred on 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 directly owned 46,479 shares in the company, valued at $7,278,146.61. The trade was a 3.49% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Jagtar Singh Chaudhry sold 1,941 shares of the business’s stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction 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. The trade was a 0.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 12,130 shares of company stock worth $1,892,487 over the last three months. Insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

Large investors have recently added to or reduced their stakes in the business. Westpac Banking Corp boosted its holdings 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 buying an additional 9,006 shares in the last quarter. Korea Investment CORP boosted its holdings in shares of Zscaler by 24.0% during 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 in the last quarter. Vinva Investment Management Ltd boosted its holdings in shares of Zscaler by 136.1% during the 3rd quarter. Vinva Investment Management Ltd now owns 11,347 shares of the company’s stock valued at $3,400,000 after buying an additional 6,541 shares in the last quarter. Qsemble Capital Management LP boosted its holdings in shares of Zscaler by 105.5% during 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 in the last quarter. Finally, Oxbow Advisors LLC bought a new stake in shares of Zscaler during the 4th quarter valued at $2,939,000. 46.45% of the stock is 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.