Zscaler Plummets 15.63% Despite $10.07 Billion Trading Volume Ranking 156th

On April 4, 2025, Zscaler (ZS) experienced a significant decline, dropping 9.13% over two consecutive days, resulting in a total decrease of 15.63%. Despite this downturn, the company's trading volume reached $10.07 billion, placing it at the 156th position in the day's market rankings.

Cantor Fitzgerald upgraded Zscaler's outlook from Neutral to Overweight on April 3, 2025. The investment firm cited improved execution and solid near-term checks as reasons for the upgrade. The price target was also increased from $220 to $250, reflecting expectations of accelerating billings, revenue growth, and margin expansion.

Additionally, there was notable insider activity on April 4, 2025, when Director Brown Andrew William Fraser sold 10,000 shares of Zscaler stock, amounting to a total value of $2,060,000. This transaction highlights a significant movement in the company's stock holdings.

Despite the recent upgrade, there is also bearish sentiment surrounding Zscaler, with increased put option activity reflecting market caution ahead of upcoming earnings. This sentiment is further supported by Jefferies lowering its price target to $240 due to recent multiple compression and softening macro factors impacting tech deal decisions, though it maintains a Buy rating.