Zscaler, Inc. (NASDAQ:ZS) Receives Average Rating of “Moderate Buy” from Brokerages

Zscaler, Inc. (NASDAQ:ZS) has earned a consensus recommendation of “Moderate Buy” from the forty-three ratings firms that are presently covering the company, MarketBeat reports. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating, thirty-three have assigned a buy rating and one has issued a strong buy rating on the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $320.1316.

A number of brokerages recently commented on ZS. Citizens Jmp restated a “market outperform” rating and set a $355.00 price objective on shares of Zscaler in a research note on Wednesday, November 26th. Robert W. Baird boosted their price target on shares of Zscaler from $350.00 to $360.00 and gave the company an “outperform” rating in a report on Wednesday, November 26th. Zacks Research upgraded shares of Zscaler from a “strong sell” rating to a “hold” rating in a research report on Thursday, October 2nd. BTIG Research reaffirmed a “buy” rating and issued a $365.00 price objective on shares of Zscaler in a report on Wednesday, November 26th. Finally, Barclays lifted their price objective on shares of Zscaler from $320.00 to $350.00 and gave the company an “overweight” rating in a research report on Wednesday, November 12th.

Insider Buying and Selling at Zscaler

In related news, CFO Kevin Rubin sold 3,303 shares of the firm’s stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $762,398.46. Following the sale, the chief financial officer directly owned 48,161 shares in the company, valued at $11,116,522.02. This trade represents a 6.42% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Robert Schlossman sold 3,200 shares of the stock in a transaction on Friday, October 24th. The stock was sold at an average price of $325.00, for a total value of $1,040,000.00. Following the completion of the transaction, the insider directly owned 80,086 shares of the company’s stock, valued at approximately $26,027,950. The trade was a 3.84% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 22,550 shares of company stock valued at $5,511,509. 17.20% of the stock is currently owned by insiders.

Institutional Trading of Zscaler

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Binnacle Investments Inc acquired a new position in shares of Zscaler during the third quarter valued at approximately $25,000. Tradewinds Capital Management LLC boosted its stake in Zscaler by 145.7% during the 3rd quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock valued at $26,000 after purchasing an additional 51 shares in the last quarter. Root Financial Partners LLC acquired a new position in shares of Zscaler during the 3rd quarter valued at $26,000. McIlrath & Eck LLC acquired a new position in shares of Zscaler during the 3rd quarter valued at $29,000. Finally, Quaker Wealth Management LLC raised its stake in shares of Zscaler by 200.0% in the 2nd quarter. Quaker Wealth Management LLC now owns 97 shares of the company’s stock worth $30,000 after buying an additional 194 shares in the last quarter. 46.45% of the stock is currently owned by institutional investors.

Zscaler Stock Down 1.6%

Shares of NASDAQ:ZS opened at $216.73 on Friday. The firm has a market cap of $34.56 billion, a PE ratio of -833.54, a price-to-earnings-growth ratio of 4,224.62 and a beta of 1.02. The company has a fifty day simple moving average of $258.73 and a 200 day simple moving average of $281.29. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 0.86. Zscaler has a 12-month low of $164.78 and a 12-month high of $336.99.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings data on Tuesday, November 25th. The company reported $0.96 earnings per share for the quarter, topping the consensus estimate of $0.85 by $0.11. Zscaler had a negative net margin of 1.45% and a negative return on equity of 0.12%. The company had revenue of $788.11 million during the quarter, compared to analyst estimates of $773.86 million. During the same period last year, the business earned $0.77 EPS. The firm’s revenue for the quarter was up 25.5% compared to the same quarter last year. Zscaler has set its FY 2026 guidance at 3.780-3.820 EPS and its Q2 2026 guidance at 0.890-0.900 EPS. On average, equities research analysts anticipate that Zscaler will post -0.1 EPS for the current fiscal year.

Zscaler Company Profile

Zscaler is a cloud security company that delivers a cloud-native platform to protect users, applications and data as organizations move away from traditional, network-centric security architectures. The company focuses on a zero trust approach that assumes no implicit trust for users or devices, providing secure access to the internet, SaaS applications and private applications regardless of where users are located. Zscaler positions its services as an alternative to legacy appliances and site-centric VPNs, aiming to simplify security while enabling modern, distributed workforces.

Key offerings are built around the Zscaler Zero Trust Exchange, a multi-tenant cloud platform that enforces security and access policies in-line.