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

Shares of Zscaler, Inc. (NASDAQ:ZS) have been assigned a consensus rating of “Moderate Buy” from the forty-one research firms that are presently covering the firm, MarketBeat reports. One equities research analyst has rated the stock with a sell recommendation, six have given a hold recommendation and thirty-four have assigned a buy recommendation to the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $214.2051.

Several equities research analysts have weighed in on ZS shares. BTIG Research reaffirmed a “neutral” rating on shares of Zscaler in a research report on Thursday, April 9th. Scotiabank reduced their price target on shares of Zscaler from $190.00 to $175.00 and set a “sector outperform” rating for the company in a report on Wednesday, May 27th. Citizens Jmp lowered their price target on shares of Zscaler from $290.00 to $210.00 and set a “market outperform” rating for the company in a research report on Friday, May 1st. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Zscaler in a report on Tuesday, June 9th. Finally, Sanford C. Bernstein cut their price objective on shares of Zscaler from $228.00 to $224.00 and set an “outperform” rating on the stock in a research report on Wednesday, May 27th.

Zscaler Stock Up 2.9%

NASDAQ:ZS opened at $151.63 on Wednesday. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72. The stock has a 50 day moving average of $142.04 and a 200-day moving average of $155.30. The firm has a market capitalization of $24.52 billion, a PE ratio of -315.89, a price-to-earnings-growth ratio of 84.41 and a beta of 0.96. Zscaler has a 52 week low of $114.63 and a 52 week high of $336.99.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, topping the consensus estimate 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 for the quarter, compared to the consensus estimate of $835.14 million. During the same quarter last year, the business posted $0.84 EPS. The business’s revenue was up 25.4% on a year-over-year basis. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Analysts predict that Zscaler will post 0.12 EPS for the current year.

Insider Activity

In other news, CFO Kevin Rubin sold 503 shares of the business’s stock in a transaction that occurred on Monday, July 27th. The stock was sold at an average price of $147.12, for a total transaction of $74,001.36. Following the completion of the transaction, the chief financial officer directly owned 41,398 shares in the company, valued at approximately $6,090,473.76. The trade was a 1.20% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Schlossman sold 3,146 shares of the stock in a transaction that occurred on Tuesday, June 16th. The stock was 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. This trade represents a 4.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 16,269 shares of company stock worth $2,052,589 over the last ninety days. 17.20% of the stock is owned by company insiders.

Institutional Trading of Zscaler

Several hedge funds have recently added to or reduced their stakes in ZS. Vanguard Group Inc. boosted its position in Zscaler by 0.5% during the 4th quarter. Vanguard Group Inc. now owns 11,423,424 shares of the company’s stock worth $2,569,357,000 after acquiring an additional 55,521 shares during the period. First Trust Advisors LP increased its holdings in shares of Zscaler by 36.2% during the first quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock valued at $493,635,000 after purchasing an additional 935,781 shares during the period. Price T Rowe Associates Inc. MD raised its stake in shares of Zscaler by 43.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company’s stock valued at $578,576,000 after purchasing an additional 777,414 shares in the last quarter. State Street Corp raised its stake in shares of Zscaler by 3.4% during the fourth quarter. State Street Corp now owns 2,337,604 shares of the company’s stock valued at $525,774,000 after purchasing an additional 77,800 shares in the last quarter. Finally, Geode Capital Management LLC lifted its holdings in Zscaler by 5.0% in the fourth quarter. Geode Capital Management LLC now owns 2,069,630 shares of the company’s stock worth $464,783,000 after purchasing an additional 98,140 shares during the period. Institutional investors own 46.45% of the company’s stock.

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.