ZS Zscaler, Inc.

BEARISH Impact: 3/10 ANALYST-DOWNGRADE
Processed 1d 10h ago SEC analyst-ZS-btig-20260409
BTIG double downgrade: Buy → Neutral

Price Chart

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Executive Summary

BTIG double-downgraded Zscaler from Buy to Neutral, a stark contrarian move against a heavily bullish consensus where 77.6% of 58 analysts rate the stock Buy or Strong Buy. The firm has a 57% accuracy on 7 ZS calls with an average return of 7.1%, slightly above average among covering firms. The mean price target of $193.79 implies ~48% upside from the current $130.78, yet BTIG set no new target, signaling caution. Short interest is elevated at 58.1% of float, converging with the downgrade, while insider sales in March totaled ~$1.4M across five executives. Despite net positive EPS revisions (22 up vs 10 down for next quarter), the double downgrade adds to negative momentum. Bottom line: the downgrade, supported by short interest and insider selling, tilts risk to the downside in the near term.

Impact Score

Base Score
2/7
LLM Adjustment
+1
Final Score
3/10

Consensus & Targets

Buy / Strong Buy
45 (78%)
Hold
13
Sell / Strong Sell
0
Total Analysts
45
Mean PT
$193.79
Median PT
$190.00
High PT
$250.00
Low PT
$145.00
Current Price
$130.78
Implied Upside
+48.2%

Of 58 analysts covering ZS, 15 Strong Buy, 30 Buy, 13 Hold, 0 Sell, 0 Strong Sell — 77.6% Buy-equivalent and 22.4% Hold. Consensus is overwhelmingly bullish.

Mean PT $193.79, median $190, high $250, low $145. Current price $130.78 implies 48.2% upside to the mean. BTIG's lack of a PT places it below the low end of consensus range.

Recent Analyst Activity

DateFirmActionRatingPrice Target
2026-06-01 Guggenheim upgrade Buy
2026-05-28 Wells Fargo maintain Overweight $180.00
2026-05-27 UBS maintain Buy $225.00
2026-05-27 B. Riley Securities maintain Buy $215.00
2026-05-27 Citigroup maintain Buy $175.00
2026-05-27 Truist Securities maintain Buy $200.00
2026-05-27 BMO Capital maintain Outperform $178.00
2026-05-27 Stephens & Co. maintain Overweight $200.00
2026-05-27 Morgan Stanley maintain Equal-Weight $145.00
2026-05-27 Barclays maintain Overweight $170.00

30-day analyst activity: 2 upgrades, 1 downgrade (BTIG). EPS revisions for next quarter show 22 up, 10 down; for next fiscal year, 25 up vs 19 down. Net upward revision trend persists.

Firm Track Record — BTIG

BTIG accuracy: 53% on 948 calls | avg return: 3.7%

Industry benchmark: mean 51% ± 11%. Top tier: ≥61% (mean + 1σ). Based on 15 firms with ≥5 scored calls.

FirmAccuracyCallsAvg Returnvs Average
Stephens & Co. 100% 3/3 19.8% top tier
Truist Securities 100% 2/2 1.9% top tier
Loop Capital 80% 4/5 10.8% top tier
Barclays 73% 8/11 4.2% top tier
Baird 71% 5/7 8.8% top tier
Stifel 71% 5/7 1% top tier
Bernstein 67% 2/3 -18.5% top tier
Mizuho 64% 7/11 -2% top tier
BMO Capital 63% 5/8 12.1% top tier
Wedbush 60% 3/5 5% above average

BTIG has 57% accuracy on 7 ZS calls with an average return of 7.1%, ranking above average. Best firm: Stephens & Co. (100% on 3 calls, avg return 19.8%). Worst: Bernstein (67% on 3 calls, avg return -18.5%).

Earnings Estimates

PeriodEPS Est.EPS RangeRevenueRevisions (7d)
+1q $1.08 $0.91 — $1.16 $926.0M ↑23 ↓0
0q $1.09 $1.08 — $1.16 $877.6M ↑39 ↓0
+1y $4.60 $3.96 — $5.42 $3.9B ↑26 ↓0
0y $4.13 $4.10 — $4.33 $3.3B ↑43 ↓0

Cross-Platform Signals

Insider Trades (90d)
0 buys / 5 sells
Institutional
TWO SIGMA INVESTMENTS, LP — trim (-63.9%)
Institutional
NORGES BANK — new
Institutional
MORGAN STANLEY — add (25.4%)
Short Interest
Short: 1,212,912 | Exempt: 1,906 | TRF Vol: 2,085,841 | Short Ratio: 58.1% | Off-exchange volume (dark pool + OTC)

Insider trades: five sells by top executives in March 2026 totaling ~$1.4M, aligning with the bearish downgrade. Institutional activity mixed: Morgan Stanley added 25.4%, Two Sigma trimmed 63.9%, UBS trimmed 49.8%. Short interest at 58.1% of float is a heavy bearish bet. No congressional trades. Short interest and insider sells converge with the downgrade.

Actionable Insight

The double downgrade from a decent-accuracy firm adds bearish conviction, reinforced by elevated short interest and insider selling. Traders should consider reducing positions or waiting for a clearer catalyst before re-entering.

Documents Analyzed

Report based on filing metadata.

17 reports for ZS
Performance horizon
56% Hit rate 5 of 9 directional calls best @ T+1▲ +7.27%May 21, 2026
Filters
Rows
Reports for ZS — sortable, filterable
Type Now
Jun 9, 2026
today
Press Release
NEUTRAL ★ 4/10
$125.20 awaiting T+5awaiting T+5$129.25 (+3.23%)
Jun 8, 2026
1d ago
ANALYST-DOWNGRADE
BEARISH ★ 3/10
$138.11 awaiting T+5awaiting T+5$129.25 (+6.42%)
Jun 1, 2026
8d ago
ANALYST-UPGRADE
BULLISH ★ 3/10
$155.62 $130.78▼ −15.96%▼ −13.21%$129.25 (−16.95%)
May 31, 2026
9d ago
ANALYST-UPGRADE
BULLISH ★ 2/10
$232.67 $229.12▼ −1.53%▼ −2.86%$129.25 (−44.45%)
May 27, 2026
13d ago
ANALYST-DOWNGRADE
BEARISH ★ 5/10
$126.17 $134.28▼ −6.43%▼ −5.96%$129.25 (−2.44%)
May 26, 2026
14d ago
8-K
MIXED ★ 6/10
$126.17 $134.28▲ +6.43%▲ +5.96%$129.25 (+2.44%)
May 22, 2026
18d ago
ANALYST-DOWNGRADE
BEARISH ★ 3/10
$142.00 $134.27▲ +5.44%▲ +5.50%$129.25 (+8.98%)
May 21, 2026
19d ago
Press Release
BULLISH ★ 6/10
$170.38 $139.62▼ −18.05%▼ −19.90%$129.25 (−24.14%)
May 19, 2026
21d ago
Press Release
NEUTRAL ★ 4/10
$174.65 $126.17▼ −27.76%▼ −30.05%$129.25 (−26.00%)
May 18, 2026
22d ago
ANALYST-UPGRADE
BULLISH ★ 3/10
$174.21 $183.97▲ +5.60%▲ +3.98%$129.25 (−25.81%)
Showing 10 of 17

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