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

Shares of Zscaler, Inc. (NASDAQ:ZS) have earned a consensus rating of “Moderate Buy” from the thirty-eight brokerages that are presently covering the company, MarketBeat.com reports. One equities research analyst has rated the stock with a sell recommendation, seven have assigned a hold recommendation, twenty-nine have issued a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month price objective among brokers that have issued a report on the stock in the last year is $307.00.

A number of equities research analysts recently weighed in on the company. Zacks Research cut Zscaler from a “hold” rating to a “strong sell” rating in a research note on Wednesday, September 3rd. BTIG Research restated a “buy” rating on shares of Zscaler in a research note on Thursday, July 10th. Needham & Company LLC restated a “buy” rating and set a $350.00 price objective on shares of Zscaler in a research note on Wednesday, September 3rd. KeyCorp upped their price objective on Zscaler from $345.00 to $350.00 and gave the stock an “overweight” rating in a research note on Wednesday, September 3rd. Finally, Guggenheim restated a “neutral” rating on shares of Zscaler in a research note on Wednesday, September 3rd.

Insider Buying and Selling

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,865 shares of the firm’s stock in a transaction dated Tuesday, September 16th. The stock was sold at an average price of $280.70, for a total value of $804,205.50. Following the completion of the sale, the chief executive officer owned 350,700 shares of the company’s stock, valued at approximately $98,441,490. This trade represents a 0.81% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Raj Judge sold 4,524 shares of the firm’s stock in a transaction dated Tuesday, September 16th. The stock was sold at an average price of $280.70, for a total value of $1,269,886.80. Following the completion of the sale, the executive vice president directly owned 73,832 shares of the company’s stock, valued at approximately $20,724,642.40. This represents a 5.77% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 32,878 shares of company stock valued at $9,266,002. Company insiders own 18.10% of the company’s stock.

Institutional Investors Weigh In On Zscaler

Several institutional investors have recently added to or reduced their stakes in ZS. T. Rowe Price Investment Management Inc. acquired a new stake in Zscaler in the first quarter worth about $516,622,000. Federated Hermes Inc. raised its stake in shares of Zscaler by 314.0% in the second quarter. Federated Hermes Inc. now owns 1,171,983 shares of the company’s stock worth $367,932,000 after purchasing an additional 888,888 shares during the last quarter. Vanguard Group Inc. raised its stake in shares of Zscaler by 8.3% in the second quarter. Vanguard Group Inc. now owns 10,715,132 shares of the company’s stock worth $3,363,909,000 after purchasing an additional 824,626 shares during the last quarter. Nuveen LLC purchased a new position in shares of Zscaler in the first quarter worth about $153,340,000. Finally, Goldman Sachs Group Inc. raised its stake in shares of Zscaler by 23.4% in the first quarter. Goldman Sachs Group Inc. now owns 3,048,238 shares of the company’s stock worth $604,831,000 after purchasing an additional 578,883 shares during the last quarter. Institutional investors and hedge funds own 46.45% of the company’s stock.

Zscaler Price Performance

Shares of ZS stock opened at $284.42 on Thursday. Zscaler has a twelve month low of $164.78 and a twelve month high of $318.46. The stock has a market capitalization of $45.02 billion, a price-to-earnings ratio of -1,053.41 and a beta of 1.05. The stock has a fifty day simple moving average of $280.34 and a two-hundred day simple moving average of $258.65. The company has a current ratio of 2.01, a quick ratio of 2.01 and a debt-to-equity ratio of 0.95.

Zscaler (NASDAQ:ZS) last issued its earnings results on Tuesday, September 2nd. The company reported $0.89 earnings per share for the quarter, topping the consensus estimate of $0.80 by $0.09. Zscaler had a negative return on equity of 0.47% and a negative net margin of 1.55%.The business had revenue of $719.23 million during the quarter, compared to analysts’ expectations of $707.15 million. During the same period in the prior year, the business earned $0.88 EPS. The business’s revenue for the quarter was up 21.3% compared to the same quarter last year. Zscaler has set its FY 2026 guidance at 3.640-3.680 EPS. Q1 2026 guidance at 0.850-0.860 EPS. On average, analysts predict that Zscaler will post -0.1 EPS for the current fiscal year.

Zscaler Company Profile

Zscaler, Inc operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.