Zscaler CEO Jay Chaudhry sold 2,852 shares of the company’s stock on Sept. 16, 2026, according to a recent SEC Form 4 filing. The sale netted $550,000, or an average price of $192.76 per share, and it was a routine transaction tied to taxes on vested shares, not a sign of the CEO losing faith in the stock.
The Sale Was Tax-Related
Chaudhry executed the sale to cover tax withholding obligations triggered by the vesting of restricted stock units. This is a standard feature of the company’s equity incentive plan, not a discretionary move to cash out.
The sale amounted to a tiny fraction of his overall holding. Chaudhry holds roughly 26.86 million shares, and this sale represents only a small portion of that total.
What the CEO Still Owns
Chaudhry’s remaining ownership is vast and mostly indirect. The key trusts are:
- The Jay & Jyoti Chaudhry TR U/A DTD 12/06/25, which holds about 26.5 million shares
- The P. Jyoti Chaudhry Family Trust, which holds 6,666 shares
His direct holdings after the sale stand at 340,186 shares.
| Holder | Share Count |
|---|---|
| Jay & Jyoti Chaudhry TR U/A DTD 12/06/25 | ~26.5 million |
| P. Jyoti Chaudhry Family Trust | 6,666 |
| Direct holdings (after sale) | 340,186 |
The CEO’s combined beneficial ownership still exceeds $5.15 billion in market value.
Price and Performance Context
The shares closed at $191.58 on Sept. 16, 2026, slightly below the weighted-average transaction price of $192.76. By Sept. 17, 2026, the stock had rebounded to $197.47.
The company has recorded a one-year return of -32%. Insider ownership remains high at 17%.
Zscaler’s stock has pulled back over the last year, but the sale itself was not a vote of confidence. Chaudhry’s sale was required by the vesting of restricted stock units, and the Form 4 filing makes that clear.
Why the Sale Should Not Alarm Investors
Investors tend to worry about insider sales, but this one is not the kind that signals trouble. The 2,852 shares sold are a trivial fraction of the approximately 26.86 million shares he holds. The sale was for tax withholding, not a change of mind about the stock.
A better question is whether investors should add to their own holdings. The stock’s pullback over the last year presents a chance to buy at a lower price, even as revenue growth slows.
Revenue grew 25% annually in the first half of 2026, but that is a slowdown compared with past years. The company also runs losses, which may raise concern as competition in the Secure Access Service Edge (SASE) space grows.
Despite those pressures, the stock trades at a price-to-sales (P/S) ratio of 9, a low valuation that may attract buyers. Continuing revenue growth could affirm Chaudhry’s long-held faith in the stock.
A Caution From the Analyst Team
The Motley Fool Stock Advisor analyst team recently identified what they believe are the 10 best stocks for investors to buy now. Zscaler was not one of them.
The team points to past picks like Netflix and Nvidia as examples of successful recommendations. Netflix grew from a December 2004 recommendation into a $406,141 gain from a $1,000 investment. Nvidia grew from an April 2005 recommendation into a $1,347,745 gain from a $1,000 investment.
Stock Advisor’s total average return is 940%, far ahead of the S&P 500’s 211%.
The takeaway is simple: Chaudhry selling a few thousand shares for tax reasons is normal. Whether you should buy Zscaler depends on your own appetite for a stock trading at a low multiple with slowing growth but still-growing revenue.
Source material: “Zscaler CEO Jay Chaudhry Sells 2,852 Shares for $550,000,” Yahoo Finance.
Get the Notebook.
The day's best stories and every fresh verdict, in plain English, in your inbox by seven. One email a day, no more.