Zscaler (NASDAQ:ZS) Price Target Raised to $215.00

Zscaler (NASDAQ:ZS) had its price objective hoisted by Needham & Company LLC from $180.00 to $215.00 in a report published on Friday morning, MarketBeat reports. The firm currently has a buy rating on the stock.

Other equities research analysts have also issued reports about the stock. Wedbush reiterated an “outperform” rating and issued a $220.00 price objective on shares of Zscaler in a research report on Wednesday, June 10th. Stifel Nicolaus lifted their target price on shares of Zscaler from $175.00 to $200.00 and gave the stock a “buy” rating in a research report on Wednesday, August 19th. Morgan Stanley cut their target price on shares of Zscaler from $155.00 to $145.00 and set an “equal weight” rating for the company in a research report on Wednesday, May 27th. Wells Fargo & Company upped their price target on shares of Zscaler from $180.00 to $210.00 and gave the company an “overweight” rating in a report on Monday, August 17th. Finally, FBN Securities reiterated an “outperform” rating and issued a $175.00 price target on shares of Zscaler in a research report on Wednesday, May 27th. Thirty-four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $215.90.

Zscaler Stock Performance

NASDAQ ZS opened at $169.80 on Friday. The business has a 50 day moving average price of $161.26 and a 200 day moving average price of $150.34. The company has a market capitalization of $27.69 billion, a P/E ratio of -435.38, a PEG ratio of 99.94 and a beta of 0.95. Zscaler has a 1-year low of $114.63 and a 1-year high of $336.99. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.70 and a quick ratio of 1.70.

Zscaler (NASDAQ:ZS) last posted its earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, beating the consensus estimate of $1.09 by $0.10. The company had revenue of $898.19 million for the quarter, compared to analyst estimates of $876.96 million. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%.Zscaler’s revenue was up 24.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.89 earnings per share. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. Sell-side analysts expect that Zscaler will post 0.13 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Robert Schlossman sold 3,146 shares of the company’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 transaction of $397,748.78. Following the completion of the transaction, the insider owned 69,366 shares of the company’s stock, valued at approximately $8,769,943.38. This represents a 4.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Adam Geller sold 2,817 shares of the stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $122.60, for a total transaction of $345,364.20. Following the transaction, the insider directly owned 42,314 shares in the company, valued at approximately $5,187,696.40. This represents a 6.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 16,772 shares of company stock worth $2,139,799 over the last 90 days. Corporate insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

Institutional investors and hedge funds have recently made changes to their positions in the company. California State Teachers Retirement System lifted its position in Zscaler by 13,837.9% during the 2nd quarter. California State Teachers Retirement System now owns 19,388,787 shares of the company’s stock worth $2,736,727,000 after acquiring an additional 19,249,679 shares in the last quarter. BlackRock Inc. acquired a new stake in Zscaler in the second quarter valued at approximately $1,396,028,000. First Trust Advisors LP raised its stake 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 during the period. Finally, AQR Capital Management LLC lifted its position in shares of Zscaler by 61.8% during the third quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company’s stock worth $576,083,000 after purchasing an additional 741,756 shares in the last quarter. 46.45% of the stock is currently owned by institutional investors and hedge funds.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Strong fiscal fourth-quarter results: Zscaler reported adjusted EPS of $1.19 versus the $1.09 consensus and revenue of $898.2 million versus $877.0 million expected. Revenue and annual recurring revenue (ARR) each increased 25% year over year, while non-GAAP operating margin reached a record 24%. Zscaler Announces Strong Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: AI and platform demand remain catalysts: Management highlighted growing demand for Security for AI, Agentic SecOps, non-seat-based products and large enterprise deals. Analysts including Baird, Stephens, Needham, Canaccord and Cantor raised price targets, generally citing the earnings beat and potential for conservative guidance to be exceeded. Zscaler Analysts Boost Their Forecasts After Better-Than-Expected Q4 Earnings
• Neutral Sentiment: Analyst opinion is divided: Some analysts called the fiscal 2027 outlook overly cautious and maintained bullish ratings, while others noted that the forecast reflects competitive pressure, the Red Canary acquisition and a more measured growth profile.
• Negative Sentiment: Fiscal 2027 growth is expected to decelerate: Zscaler guided for revenue growth of 16.6% to 17.5% and ARR growth of 16.6% to 17.4%, well below the 25% growth delivered in fiscal 2026. The slower outlook overshadowed the quarterly beat and renewed valuation concerns for high-growth cybersecurity stocks. Zscaler Fiscal 2027 Growth Forecast
• Negative Sentiment: Free cash flow weakened sharply: Fourth-quarter free cash flow fell 65% year over year to $60.8 million, versus approximately $66.9 million expected, as capital expenditures and internal-use software spending increased. Zscaler also announced a restructuring affecting about 3% of its workforce, adding execution concerns. Zscaler Shares Fall Despite Earnings Beat

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.