Zscaler, Inc. (ZS) – What Are Brokerages Saying About This Stock?

Zscaler, Inc. (NASDAQ:ZS) has received an average recommendation of “Moderate Buy” from the forty-five brokerages that are currently covering the stock, MarketBeat reports. One analyst has rated the stock with a sell recommendation, eight have assigned a hold recommendation and thirty-six have assigned a buy recommendation to the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $236.65.

A number of research analysts have recently commented on the company. TD Cowen raised their target price on Zscaler from $200.00 to $230.00 and gave the company a “buy” rating in a research note on Wednesday, October 7th. Guggenheim lifted their price target on Zscaler from $214.00 to $254.00 and gave the company a “buy” rating in a research report on Wednesday, October 7th. Sanford C. Bernstein upped their price target on Zscaler from $224.00 to $298.00 and gave the stock an “outperform” rating in a research note on Thursday, September 17th. DA Davidson started coverage on Zscaler in a report on Wednesday, October 21st. They issued a “neutral” rating and a $215.00 price objective for the company. Finally, Robert W. Baird increased their price objective on Zscaler from $230.00 to $285.00 and gave the stock an “outperform” rating in a report on Wednesday, October 7th.

Zscaler Stock Down 9.2%

Shares of NASDAQ ZS opened at $203.88 on Friday. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 0.65. Zscaler has a 12 month low of $114.63 and a 12 month high of $333.90. The firm has a market capitalization of $33.24 billion, a PE ratio of -522.77, a price-to-earnings-growth ratio of 21.34 and a beta of 0.82. The firm has a fifty day simple moving average of $207.81 and a two-hundred day simple moving average of $167.72.

Zscaler (NASDAQ:ZS) last announced its earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, beating analysts’ consensus estimates of $1.09 by $0.10. The firm had revenue of $898.19 million for the quarter, compared to analyst estimates of $876.96 million. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The company’s revenue for the quarter was up 24.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.89 EPS. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. Equities analysts expect that Zscaler will post 0.70 earnings per share for the current year.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: AI security demand and continued adoption of Zero Trust are potential growth supports, according to a recent Zacks analysis, which nevertheless recommended a hold. Zacks analysis of Zscaler’s outlook
• Neutral Sentiment: Zscaler said it will report first-quarter fiscal 2027 results after market close on December 2 and hold an investor call that day. The announcement sets the next major earnings catalyst but did not provide new financial results. Earnings call announcement
• Neutral Sentiment: Insider Adam Geller sold 1,041 shares under a pre-arranged Rule 10b5-1 plan, a relatively small reduction in his holdings. Insider transaction report
• Negative Sentiment: Coverage cited slowing growth and rising spending as headwinds. On the latest session, Zscaler fell alongside Cloudflare, Datadog, Elastic and Palantir, suggesting a broader pullback in growth-oriented technology shares also weighed on the stock. Report on declines in software and cybersecurity shares

Insider Buying and Selling at Zscaler

In related news, CFO Kevin Rubin sold 514 shares of Zscaler stock in a transaction dated Monday, October 26th. The shares were sold at an average price of $259.15, for a total transaction of $133,203.10. Following the completion of the transaction, the chief financial officer directly owned 62,113 shares of the company’s stock, valued at $16,096,583.95. This trade represents a 0.82% decrease in their position. The sale was disclosed in a legal filing 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 5,394 shares of Zscaler stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $200.00, for a total transaction of $1,078,800.00. Following the transaction, the insider directly owned 61,525 shares of the company’s stock, valued at approximately $12,305,000. This trade represents a 8.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 55,105 shares of company stock valued at $11,563,836 over the last 90 days. 17.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Zscaler

Institutional investors and hedge funds have recently made changes to their positions in the business. BlackRock Inc. bought a new position in Zscaler in the second quarter worth approximately $1,396,028,000. First Trust Advisors LP grew its position in shares of Zscaler by 36.2% during the 1st quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock valued at $493,635,000 after acquiring an additional 935,781 shares during the period. Amundi increased its stake in shares of Zscaler by 12.8% in the 2nd quarter. Amundi now owns 1,137,837 shares of the company’s stock worth $160,606,000 after purchasing an additional 129,563 shares in the last quarter. Wellington Management Group LLP increased its stake in shares of Zscaler by 23.5% in the 2nd quarter. Wellington Management Group LLP now owns 1,103,212 shares of the company’s stock worth $155,718,000 after purchasing an additional 209,711 shares in the last quarter. Finally, Bank of America Corp DE increased its stake in shares of Zscaler by 44.3% in the 1st quarter. Bank of America Corp DE now owns 779,245 shares of the company’s stock worth $109,320,000 after purchasing an additional 239,326 shares in the last quarter. Institutional investors own 46.45% of the company’s stock.

About Zscaler

Zscaler, Inc is a cloud-based cybersecurity company that helps organizations secure access to applications, websites, data and other digital resources. Its platform is designed around a zero-trust security model, which verifies users and devices and enforces security policies before granting access, rather than relying primarily on a traditional corporate network perimeter.

The company’s offerings include Zscaler Internet Access, which provides secure access to internet and software-as-a-service applications, and Zscaler Private Access, which enables secure access to private applications without extending an organization’s network to users.