Zscaler, Inc. (NASDAQ:ZS – Get Free Report) has earned an average rating of “Moderate Buy” from the forty-one brokerages that are presently covering the company, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and thirty-four have assigned a buy rating to the company. The average 1-year price objective among brokers that have covered the stock in the last year is $213.9744.
A number of equities analysts have recently issued reports on ZS shares. KeyCorp cut their target price on Zscaler from $190.00 to $176.00 and set an “overweight” rating for the company in a research note on Thursday. Citigroup reissued a “market outperform” rating on shares of Zscaler in a research note on Wednesday, May 27th. Zacks Research raised Zscaler from a “strong sell” rating to a “hold” rating in a research note on Wednesday, May 27th. Needham & Company LLC reissued a “buy” rating and set a $180.00 target price on shares of Zscaler in a research note on Wednesday, June 10th. Finally, Cantor Fitzgerald reissued an “overweight” rating and set a $225.00 target price on shares of Zscaler in a research note on Wednesday, June 10th.
Zscaler Stock Performance
Zscaler (NASDAQ:ZS – Get Free Report) last issued its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.01 by $0.07. The business had revenue of $850.48 million during the quarter, compared to the consensus estimate of $835.14 million. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The company’s revenue for the quarter was up 25.4% on a year-over-year basis. During the same period in the prior year, the business posted $0.84 EPS. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. On average, equities analysts forecast that Zscaler will post 0.11 EPS for the current year.
More Zscaler News
Here are the key news stories impacting Zscaler this week:
- Positive Sentiment: Zscaler announced a multi-year partnership with Aston Martin Aramco Formula One Team, which will use Zscaler’s Zero Trust Exchange platform to secure sensitive design, strategy, and race data. Article Title
- Positive Sentiment: Zscaler CEO Jay Chaudhry highlighted AI as a major cybersecurity opportunity, reinforcing the company’s positioning in a fast-growing market. Article Title
- Positive Sentiment: Another report said AI could create the biggest cybersecurity opportunity in years, which supports the investment case for Zscaler’s AI-era security platform. Article Title
- Neutral Sentiment: Market commentary noted Zscaler had only a modest post-earnings move, suggesting traders are still assessing the company’s near-term outlook. Article Title
- Neutral Sentiment: Pomerantz LLP said it is investigating claims on behalf of Zscaler investors, which may add headline risk but does not by itself confirm wrongdoing. Article Title
- Negative Sentiment: Zscaler CFO Kevin Rubin sold 3,000 shares under a pre-arranged trading plan, which can still weigh on sentiment even though the sale was routine. Article Title
Insider Transactions at Zscaler
In related news, insider Adam Geller sold 2,817 shares of the firm’s stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $122.60, for a total value of $345,364.20. Following the completion of the transaction, the insider directly owned 42,314 shares of the company’s stock, valued at $5,187,696.40. This trade represents a 6.24% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Schlossman sold 3,146 shares of the firm’s stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $397,748.78. Following the completion of the transaction, the insider directly owned 69,366 shares of the company’s stock, valued at $8,769,943.38. The trade was a 4.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 15,644 shares of company stock valued at $1,960,287. Company insiders own 17.20% of the company’s stock.
Hedge Funds Weigh In On Zscaler
Several hedge funds have recently bought and sold shares of ZS. Binnacle Investments Inc purchased a new position in Zscaler in the 3rd quarter valued at approximately $25,000. AlphaCentric Advisors LLC purchased a new position in Zscaler in the 4th quarter valued at approximately $29,000. Picton Mahoney Asset Management purchased a new position in Zscaler in the 3rd quarter valued at approximately $30,000. University of Texas Texas AM Investment Management Co. purchased a new position in Zscaler in the 4th quarter valued at approximately $30,000. Finally, Mcguire Capital Advisors Inc. purchased a new position in Zscaler in the 4th quarter valued at approximately $32,000. 46.45% of the stock is owned by hedge funds and other institutional investors.
About Zscaler
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.
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