Zscaler’s (ZS) “Buy” Rating Reiterated at Guggenheim

Guggenheim reissued their buy rating on shares of Zscaler (NASDAQ:ZS) in a research report report published on Monday morning,Benzinga reports. The firm currently has a $214.00 target price on the stock.

Several other equities analysts have also commented on ZS. Morgan Stanley decreased their target price on shares of Zscaler from $155.00 to $145.00 and set an “equal weight” rating on the stock in a report on Wednesday, May 27th. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $179.00 price target on shares of Zscaler in a report on Wednesday, May 27th. Berenberg Bank set a $200.00 price target on shares of Zscaler in a research report on Thursday, May 28th. FBN Securities reissued an “outperform” rating and issued a $175.00 price objective on shares of Zscaler in a research note on Wednesday, May 27th. Finally, Sanford C. Bernstein lowered their price objective on shares of Zscaler from $228.00 to $224.00 and set an “outperform” rating for the company in a research report on Wednesday, May 27th. Thirty-four analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $216.18.

Zscaler Stock Up 1.1%

Shares of NASDAQ ZS opened at $170.31 on Monday. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86. Zscaler has a 52 week low of $114.63 and a 52 week high of $336.99. The stock has a market capitalization of $27.54 billion, a P/E ratio of -354.81, a PEG ratio of 99.13 and a beta of 0.94. The stock’s fifty day moving average is $153.75 and its 200 day moving average is $149.99.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, beating analysts’ consensus estimates of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The business had revenue of $850.48 million during the quarter, compared to the consensus estimate of $835.14 million. Zscaler’s revenue for the quarter was up 25.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.84 earnings per share. Sell-side analysts forecast that Zscaler will post 0.13 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Robert Schlossman sold 3,146 shares of Zscaler stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total transaction of $397,748.78. Following the sale, the insider directly owned 69,366 shares of the company’s stock, valued at approximately $8,769,943.38. The trade was a 4.34% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Kevin Rubin sold 3,000 shares of the company’s stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $124.22, for a total transaction of $372,660.00. Following the transaction, the chief financial officer owned 41,901 shares of the company’s stock, valued at approximately $5,204,942.22. This represents a 6.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 16,772 shares of company stock worth $2,139,799 in the last ninety days. Insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Amundi increased its holdings in shares of Zscaler by 12.8% during the second quarter. Amundi now owns 1,137,837 shares of the company’s stock worth $160,606,000 after buying an additional 129,563 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in Zscaler in the second quarter valued at $3,588,000. California State Teachers Retirement System increased its holdings in Zscaler by 13,837.9% in the second quarter. California State Teachers Retirement System now owns 19,388,787 shares of the company’s stock valued at $2,736,727,000 after purchasing an additional 19,249,679 shares during the period. POM Investment Strategies LLC lifted its holdings in Zscaler by 92.9% during the 2nd quarter. POM Investment Strategies LLC now owns 218 shares of the company’s stock worth $31,000 after buying an additional 105 shares during the period. Finally, HB Wealth Management LLC lifted its holdings in Zscaler by 16.2% during the 2nd quarter. HB Wealth Management LLC now owns 3,182 shares of the company’s stock worth $449,000 after buying an additional 443 shares during the period. Institutional investors own 46.45% of the company’s stock.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: JPMorgan raised its price target on Zscaler from $205 to $215 and maintained an “overweight” rating, implying substantial upside from recent trading levels. Benzinga report
• Positive Sentiment: Zscaler participated in Deep Cogito’s $43 million Series A financing. The investment gives Zscaler exposure to a startup developing reinforcement-learning and self-improving AI models, potentially supporting the company’s broader AI and cybersecurity strategy. Deep Cogito funding announcement
• Positive Sentiment: Guggenheim reaffirmed its “Buy” rating, adding another supportive analyst opinion as investors assess Zscaler’s growth prospects. Guggenheim rating report
• Neutral Sentiment: Analyst sentiment is mixed ahead of earnings. Reports highlight strong AI-driven expectations across cybersecurity stocks, increasing the potential for volatility if Zscaler’s fiscal fourth-quarter results or outlook fall short. Cybersecurity stocks earnings report
• Negative Sentiment: Evercore added Zscaler to its tactical underperform list ahead of the fiscal fourth-quarter report, signaling concern that the stock’s valuation and elevated expectations may limit near-term upside. Evercore tactical underperform report
• Negative Sentiment: CFO Kevin Rubin sold 503 shares worth approximately $87,210 under a pre-arranged Rule 10b5-1 trading plan. The transaction was small relative to his remaining holdings and appears more routine than an indication of changing company fundamentals, but it can still attract modest selling scrutiny. SEC insider trading filing

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.