Zscaler's Plunging Trading Volume Ranks 172nd as Stock Dips 0.86% Despite 52.2% Year-To-Date Surge and Strong Institutional Backing

Zscaler (ZS) fell 0.86% on September 4, 2025, with a trading volume of $0.56 billion, a 65.58% decline from the previous day. The stock ranked 172th in trading activity among listed companies. The firm, a leader in cloud-based security solutions, reported fiscal Q4 2025 earnings that exceeded expectations, with revenue up 22.6% year-over-year. Analysts revised expectations ahead of the earnings release, and Morgan Stanley upgraded its rating, signaling renewed institutional confidence.

The company’s recent partnership with Red Canary to enhance zero-trust security frameworks and its AI-driven innovations have bolstered market perception. Institutional ownership remains strong, with 46.45% of shares held by major investors, while insider selling activity totaled $50.6 million in the past three months. Short interest declined by 5.54% month-on-month, indicating improving sentiment despite the recent price dip.

Zscaler’s market capitalization remains elevated, with a P/E ratio of -1,056.04 and a PEG ratio of 259.58, reflecting its high-growth profile. The stock has surged 52.2% year-to-date, outperforming broader tech sector benchmarks. Analysts note that the firm’s focus on SASE (Secure Access Service Edge) and zero-trust architectures positions it to benefit from enterprise digital transformation trends.

On September 2, Zscaler announced fourth-quarter results exceeding forecasts, with EPS of $0.84 versus $0.76 expected. The firm also highlighted supply chain security challenges affecting some clients but emphasized resilience in its core offerings. Institutional ownership trends suggest continued long-term support, though insider transactions have leaned toward selling in recent months.

Trading volume for ZS fell 65.58% on September 4, with a total value of $0.56 billion. The stock ranked 172th in market activity and closed at a 0.86% decline. These figures align with the firm’s broader trading patterns, which reflect strong institutional interest but occasional volatility amid earnings cycles and market sentiment shifts.