Zscaler Target of Unusually High Options Trading (NASDAQ:ZS)

Zscaler, Inc. (NASDAQ:ZS) was the recipient of some unusual options trading on Monday. Investors bought 48,238 call options on the company. This represents an increase of 55% compared to the typical daily volume of 31,072 call options.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Guggenheim upgraded Zscaler to Buy and set a $214 target, suggesting meaningful upside after the recent pullback. Why Is Zscaler (ZS) Stock Soaring Today
• Positive Sentiment: Zscaler broke above its 50-day moving average, a technical signal that may indicate short-term bullish momentum. Zscaler (ZS) Recently Broke Out Above the 50-Day Moving Average
• Positive Sentiment: Analyst price-target data still implies roughly 25% upside, and earnings estimate revisions have been trending favorably. Wall Street Analysts Think Zscaler (ZS) Could Surge 25.28%
• Neutral Sentiment: Management discussed earnings, AI adoption, and the Symmetry Systems acquisition on a CFO interview, but this appears informational rather than a fresh market-moving announcement. Zscaler (ZS) CFO on Earnings, AI Opportunity in Cybersecurity & Symmetry Systems Acquisition
• Negative Sentiment: Two shareholder-law-firm investigations into possible securities-law claims may add legal overhang and keep some investors cautious. SHAREHOLDER ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Zscaler
• Negative Sentiment: Another securities-law investigation from Johnson Fistel could create additional headline risk. Zscaler, Inc. Shareholders Are Encouraged to Reach Out to Johnson Fistel

Insider Transactions at Zscaler

In other Zscaler news, insider Adam Geller sold 2,094 shares of Zscaler stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total value of $321,491.82. Following the sale, the insider owned 46,949 shares of the company’s stock, valued at $7,208,079.97. This trade represents a 4.27% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Robert Schlossman sold 2,263 shares of Zscaler stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $354,363.17. Following the completion of the sale, the insider directly owned 72,390 shares in the company, valued at $11,335,550.10. This represents a 3.03% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 12,130 shares of company stock worth $1,892,487. Corporate insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On Zscaler

Large investors have recently modified their holdings of the stock. Westpac Banking Corp lifted its position in Zscaler by 919.0% during the third quarter. Westpac Banking Corp now owns 9,986 shares of the company’s stock valued at $2,992,000 after purchasing an additional 9,006 shares during the period. Korea Investment CORP increased its stake in shares of Zscaler by 24.0% in the third quarter. Korea Investment CORP now owns 98,370 shares of the company’s stock worth $29,478,000 after purchasing an additional 19,026 shares in the last quarter. Qsemble Capital Management LP grew its stake in Zscaler by 105.5% during the fourth quarter. Qsemble Capital Management LP now owns 15,773 shares of the company’s stock valued at $3,548,000 after acquiring an additional 8,099 shares in the last quarter. Vinva Investment Management Ltd lifted its position in Zscaler by 136.1% during the third 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 last quarter. Finally, Oxbow Advisors LLC bought a new stake in shares of Zscaler in the 4th quarter worth about $2,939,000. Institutional investors own 46.45% of the company’s stock.

Zscaler Stock Down 7.4%

ZS opened at $144.15 on Wednesday. The company has a 50 day moving average of $144.37 and a 200 day moving average of $187.40. 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 has a 12 month low of $114.63 and a 12 month high of $336.99. The company has a market cap of $23.31 billion, a PE ratio of -300.31 and a beta of 0.97.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, beating the consensus estimate of $1.01 by $0.07. The firm had revenue of $850.48 million for the quarter, compared to analysts’ expectations of $835.14 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The business’s quarterly revenue was up 25.4% on a year-over-year basis. During the same quarter last year, the company 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, sell-side analysts expect that Zscaler will post -0.03 EPS for the current year.

Analyst Ratings Changes

Several equities analysts have recently commented on the company. Barclays decreased their target price on Zscaler from $180.00 to $170.00 and set an “overweight” rating on the stock in a research report on Wednesday, May 27th. HC Wainwright upgraded Zscaler from a “buy” rating to a “buy” rating in a report on Monday, May 18th. Citigroup reaffirmed a “market outperform” rating on shares of Zscaler in a research report on Wednesday, May 27th. Stephens set a $205.00 price objective on shares of Zscaler in a research report on Wednesday, May 27th. Finally, BMO Capital Markets lowered their target price on shares of Zscaler from $210.00 to $178.00 and set an “outperform” rating on the stock in a report on Wednesday, May 27th. Thirty-three 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 MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $216.03.

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.