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

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

Analyst Ratings Changes

A number of research firms have recently weighed in on ZS. Canaccord Genuity Group reissued a “buy” rating and issued a $210.00 price target on shares of Zscaler in a research note on Thursday, June 11th. Weiss Ratings reissued a “sell (e+)” rating on shares of Zscaler in a research note on Tuesday, June 9th. Robert W. Baird cut their price target on Zscaler from $265.00 to $230.00 and set an “outperform” rating on the stock in a research note on Wednesday, May 27th. The Goldman Sachs Group reissued a “neutral” rating and issued a $179.00 price target on shares of Zscaler in a research note on Wednesday, May 27th. Finally, Needham & Company LLC reissued a “buy” rating and issued a $180.00 price target on shares of Zscaler in a research note on Wednesday, June 10th. Thirty-four analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $214.33.

Zscaler Price Performance

The company has a 50 day simple moving average of $142.16 and a 200-day simple moving average of $175.11. The stock has a market cap of $20.11 billion, a price-to-earnings ratio of -259.12, a P/E/G 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 (EPS) for the quarter, beating the consensus estimate 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 for the quarter, compared to the consensus estimate of $835.14 million. During the same quarter last year, the business posted $0.84 EPS. The company’s revenue for the quarter 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. Research analysts expect that Zscaler, Inc. will post 0.11 EPS for the current year.

Hedge Funds Weigh In On Zscaler

Several hedge funds have recently modified their holdings of ZS. Integrated Wealth Concepts LLC grew its holdings in shares of Zscaler by 19.9% in the 1st quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company’s stock valued at $285,000 after acquiring an additional 239 shares in the last quarter. NewEdge Advisors LLC grew its holdings in shares of Zscaler by 8.2% in the 1st quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock valued at $972,000 after acquiring an additional 370 shares in the last quarter. Empowered Funds LLC grew its holdings in shares of Zscaler by 9.2% in the 1st quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock valued at $558,000 after acquiring an additional 238 shares in the last quarter. Sivia Capital Partners LLC bought a new position in shares of Zscaler in the 2nd quarter valued at about $252,000. Finally, Jump Financial LLC bought a new position in shares of Zscaler in the 2nd quarter valued at about $3,019,000. Institutional investors 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.