Zscaler's 0.82% Rise Amid 211th-Ranked Volume and Mixed Analyst Reactions

Market Snapshot

On December 3, 2025, , , which ranked the stock 211th in terms of daily trading activity. The volume contraction marked a significant drop from the prior day’s levels, though the modest price gain suggests resilience amid reduced liquidity. , . Analysts highlighted the stock’s recent volatility, , underscoring ongoing market sensitivity to valuation concerns and earnings dynamics.

Key Drivers

Citigroup’s recent downgrade of Zscaler’s price target from $365 to $350—while maintaining a “buy” rating—underscored a nuanced shift in institutional sentiment. , aligning with broader analyst optimism despite the reduction. This adjustment followed Zscaler’s Q3 2025 earnings report, . , particularly Zscaler Internet Access and Private Access, amid a competitive market. However, , prompting analysts to balance growth potential against valuation risks.

The earnings report also featured updated FY2026 guidance, , . This upward revision reinforced investor confidence in Zscaler’s long-term trajectory, though mixed analyst reactions tempered immediate market enthusiasm. Stifel Nicolaus reduced its price target from $330 to $320, while Canaccord Genuity Group raised its target to $340. Piper Sandler and JPMorgan also adjusted their targets, . Despite these divergences, , albeit with caution around execution risks.

Insider activity added another layer of complexity. and Robert Schlossman sold significant portions of their holdings in September and October 2025, , respectively. These sales, , raised questions about management’s confidence in near-term valuation. Yet institutional ownership remained robust, . , even as retail investors remained cautious.

. While Zscaler’s beta indicated sensitivity to broader market movements, . Analysts noted that the company’s guidance and earnings beat could attract momentum-driven buyers, but the negative margins and elevated beta posed risks in a tightening credit environment. .

Ultimately, . The Citigroup downgrade, while reducing the price target, maintained a “buy” rating, signaling that fundamental strengths outweighed near-term risks for many investors. However, . As the market digests these developments, , low-margin sector.