Rich Michael J., who serves as Chief Revenue Officer and President of Worldwide Sales at Zscaler, Inc. (NASDAQ: ZS), executed a share sale on March 17, 2026, according to a Form 4 filing with the Securities and Exchange Commission.
The filing shows that Michael disposed of 3,147 shares of Zscaler common stock at a per-share price of $156.5932. The aggregate proceeds from the transaction were $492,798. Following the sale, Michael directly holds 104,350 shares of the company.
Per the disclosure, the disposition was made to cover tax withholding obligations arising from the vesting of restricted stock units, consistent with the mechanics set out in Zscaler’s equity incentive plans.
Market context provided in the filing notes that Zscaler’s shares were trading at roughly $156 at the time, with a year-to-date decline of about 31%. Despite that recent share-price weakness, InvestingPro analysis referenced in the filing indicates the stock appears undervalued on its Fair Value assessment and places Zscaler among names on the Most Undervalued list. The company’s reported fundamentals in the disclosure include a 77% gross profit margin and a balance sheet position with more cash than debt.
Recent operating and strategic developments
Separately, Zscaler reported results for the second quarter of fiscal 2026 that showed revenue growth of 26% year over year and an increase in annual recurring revenue of 25%. Management cited contributions from its Data Security business, its artificial intelligence initiatives, and the Zero Trust Exchange platform as drivers of that performance. The company also said it plans to expand data sovereignty capabilities with a planned deployment in Canada, part of a larger global infrastructure that now comprises 160 data centers.
Analyst coverage has shifted in the wake of those results and the broader business outlook. Wells Fargo initiated coverage with an Overweight rating and a $200 price target, pointing to platform growth and opportunities in areas such as Zero Trust Exchange and AI. TD Cowen lowered its price target to $220 from $260 while keeping its rating unchanged. BMO Capital reduced its target to $210 from $315 and noted concerns about growth durability even as it raised its fiscal 2026 annual recurring revenue estimate by $32 million. Stifel trimmed its target to $180 from $320 but maintained a Buy rating, highlighting that the company’s second-quarter results exceeded expectations on both the top line and bottom line.
Summary
The Form 4 filing documents an insider sale by Zscaler’s CRO and President of Worldwide Sales that was undertaken to satisfy RSU-related tax withholding. The transaction occurred amid a period of share-price weakness but follows a quarter of solid revenue and ARR growth and ongoing analyst reassessments of the company’s outlook.
Key points
- Insider sale: Rich Michael J. sold 3,147 shares on March 17, 2026, at $156.5932 per share for total proceeds of $492,798; he retains 104,350 shares.
- Transaction purpose: The sale was used to cover tax withholding tied to vesting restricted stock units under Zscaler’s equity incentive plans.
- Company backdrop: Zscaler reported Q2 fiscal 2026 revenue growth of 26% and ARR growth of 25%, with strategic work on Data Security, AI, and Zero Trust Exchange and plans to expand data sovereignty with a Canada deployment among 160 data centers.
Risks and uncertainties
- Share-price pressure: Zscaler’s stock had fallen about 31% year to date at the time of the filing, which could affect investor sentiment in the technology and cybersecurity sectors.
- Analyst divergence: Price-target revisions and differing analyst views on growth durability create uncertainty about near-term valuation expectations in the market and among institutional investors.
- Dependence on product areas: Continued revenue strength tied to Data Security, AI, and Zero Trust Exchange is a material assumption; any slowdown in demand for these offerings could influence results.
For readers seeking deeper company coverage, the filing notes that Zscaler is included among more than 1,400 US equities covered by InvestingPro’s Pro Research Reports, available through that service. The filing also references ProPicks AI, which evaluates companies across a broad set of metrics for idea generation.