Zscaler (NASDAQ:ZS) Reaches New 1-Year Low – What’s Next?

Zscaler, Inc. (NASDAQ:ZS)’s stock price reached a new 52-week low during mid-day trading on Wednesday . The company traded as low as $139.30 and last traded at $139.41, with a volume of 3408895 shares trading hands. The stock had previously closed at $151.80.

Key Stories Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: P0 Security announced a technology partnership with Zscaler to extend Zero Trust access for private resources — a direct product/market validation that can help sales and enterprise adoption. P0 Security Announces Technology Partnership with Zscaler to Advance Zero Trust for Private Resources
• Positive Sentiment: Versa announced automated integration with Zscaler Internet Access (ZIA) to simplify secure branch connectivity — this tightens Zscaler’s ecosystem and could accelerate SASE deployments. Versa Simplifies Secure Branch Connectivity with Automated Integration for Zscaler Internet Access
• Positive Sentiment: CEO Jay Chaudhry reiterated at RSA that AI won’t replace mission‑critical traffic inspection that requires 100% reliability — a message that supports Zscaler’s differentiation and long‑term TAM positioning in AI+security. Zscaler CEO: AI can’t replace mission-critical traffic inspection requiring 100% reliability
• Positive Sentiment: Brown Advisory’s Mid‑Cap Growth strategy disclosed establishing a position in Zscaler — an institutional buyer note that can be viewed as a vote of confidence. Here’s Why Brown Advisory Mid-Cap Growth Established a Position in Zscaler (ZS)
• Neutral Sentiment: Zacks flagged Zscaler as a trending stock, increasing retail/analyst attention but not delivering new fundamental news. Zscaler, Inc. (ZS) Is a Trending Stock: Facts to Know Before Betting on It
• Neutral Sentiment: Industry pieces emphasize Zero Trust as central to AI security strategies — a thematic tailwind for Zscaler but not company‑specific news. Zero Trust Anchors AI Security Strategy
• Negative Sentiment: Multiple short‑interest notices report a “significant increase” but show 0 shares/NaN changes — the headline of rising short interest can pressure sentiment despite the apparent data errors; watch for any confirmed short filings or updates.

Analysts Set New Price Targets

ZS has been the subject of a number of analyst reports. Zacks Research lowered shares of Zscaler from a “hold” rating to a “strong sell” rating in a research report on Thursday, February 26th. BTIG Research lowered their target price on shares of Zscaler from $365.00 to $209.00 and set a “buy” rating for the company in a research note on Tuesday, February 24th. Sanford C. Bernstein upgraded Zscaler from a “market perform” rating to an “outperform” rating and set a $228.00 price target for the company in a report on Friday, February 13th. Mizuho reduced their price target on Zscaler from $265.00 to $250.00 and set an “outperform” rating on the stock in a research note on Friday, February 27th. Finally, Barclays set a $220.00 price objective on Zscaler in a report on Thursday, February 19th. Two equities research 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 assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $267.13.

Zscaler Stock Performance

The company has a quick ratio of 1.90, a current ratio of 1.90 and a debt-to-equity ratio of 0.78. The company has a market cap of $22.42 billion, a PE ratio of -331.93 and a beta of 1.07. The stock’s 50 day simple moving average is $175.03 and its two-hundred day simple moving average is $240.68.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings results on Thursday, February 26th. The company reported $1.01 earnings per share for the quarter, beating analysts’ consensus estimates of $0.89 by $0.12. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The company had revenue of $815.75 million for the quarter, compared to analyst estimates of $798.92 million. During the same quarter last year, the business earned $0.78 EPS. Zscaler’s revenue for the quarter was up 25.9% on a year-over-year basis. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. As a group, research analysts anticipate that Zscaler, Inc. will post -0.1 earnings per share for the current year.

Insider Transactions at Zscaler

In other news, CEO Jagtar Singh Chaudhry sold 1,941 shares of the firm’s stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $303,941.19. Following the transaction, the chief executive officer directly owned 345,916 shares in the company, valued at $54,166,986.44. This trade represents a 0.56% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Raj Judge sold 2,488 shares of the firm’s stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $389,595.92. Following the completion of the transaction, the executive vice president owned 67,906 shares in the company, valued at approximately $10,633,400.54. This trade represents a 3.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 12,783 shares of company stock valued at $2,040,536 in the last ninety days. Company insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

A number of institutional investors and hedge funds have recently bought and sold shares of ZS. Rockefeller Capital Management L.P. raised its holdings in Zscaler by 5.6% in the fourth quarter. Rockefeller Capital Management L.P. now owns 13,344 shares of the company’s stock valued at $3,001,000 after buying an additional 708 shares during the period. Spear Advisors LLC purchased a new stake in Zscaler during the fourth quarter worth approximately $3,460,000. EMC Capital Management grew its stake in Zscaler by 779.1% during the fourth quarter. EMC Capital Management now owns 3,780 shares of the company’s stock worth $819,000 after buying an additional 3,350 shares during the period. Worthington Financial Partners LLC acquired a new stake in shares of Zscaler in the fourth quarter worth $720,000. Finally, Sentinel Dome Partners LLC acquired a new stake in shares of Zscaler in the fourth quarter worth $990,000. Institutional investors and hedge funds own 46.45% of the company’s stock.

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.