Zscaler (NASDAQ:ZS) Given New $305.00 Price Target at Citigroup

Zscaler (NASDAQ:ZS) had its price objective cut by Citigroup from $350.00 to $305.00 in a report released on Tuesday,Benzinga reports. They currently have a buy rating on the stock.

Several other research firms also recently issued reports on ZS. Royal Bank Of Canada reduced their price objective on Zscaler from $366.00 to $290.00 and set an “outperform” rating on the stock in a report on Monday, January 5th. Macquarie assumed coverage on Zscaler in a research note on Friday, October 31st. They set an “outperform” rating and a $390.00 price target on the stock. Needham & Company LLC dropped their price objective on Zscaler from $350.00 to $310.00 and set a “buy” rating for the company in a report on Wednesday, November 26th. UBS Group reduced their target price on shares of Zscaler from $350.00 to $340.00 and set a “buy” rating on the stock in a research note on Wednesday, November 26th. Finally, Morgan Stanley set a $305.00 price target on shares of Zscaler in a research report on Thursday, December 18th. One analyst has rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $317.63.

Zscaler Stock Up 0.1%

ZS stock opened at $216.85 on Tuesday. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.82 and a quick ratio of 1.82. Zscaler has a 52-week low of $164.78 and a 52-week high of $336.99. The company has a 50-day moving average of $254.11 and a two-hundred day moving average of $279.50. The stock has a market capitalization of $34.58 billion, a price-to-earnings ratio of -834.01, a price-to-earnings-growth ratio of 4,153.86 and a beta of 1.02.

Zscaler (NASDAQ:ZS) last issued its quarterly earnings results on Tuesday, November 25th. The company reported $0.96 EPS for the quarter, topping the consensus estimate of $0.85 by $0.11. Zscaler had a negative return on equity of 0.12% and a negative net margin of 1.45%.The company had revenue of $788.11 million for the quarter, compared to the consensus estimate of $773.86 million. During the same period in the previous year, the business posted $0.77 EPS. The company’s revenue for the quarter was up 25.5% on a year-over-year basis. Zscaler has set its FY 2026 guidance at 3.780-3.820 EPS and its Q2 2026 guidance at 0.890-0.900 EPS. As a group, equities research analysts anticipate that Zscaler will post -0.1 EPS for the current year.

Insider Transactions at Zscaler

In related news, insider Robert Schlossman sold 2,349 shares of Zscaler stock in a transaction dated Wednesday, December 17th. The stock was sold at an average price of $232.79, for a total value of $546,823.71. Following the sale, the insider owned 74,653 shares of the company’s stock, valued at approximately $17,378,471.87. The trade was a 3.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director James A. Beer sold 653 shares of the company’s stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $226.72, for a total value of $148,048.16. Following the sale, the director owned 3,485 shares in the company, valued at approximately $790,119.20. This represents a 15.78% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 22,550 shares of company stock worth $5,511,509. 17.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Zscaler

A number of large investors have recently made changes to their positions in the company. Bessemer Group Inc. raised its stake in Zscaler by 3.2% in the third quarter. Bessemer Group Inc. now owns 1,021 shares of the company’s stock valued at $306,000 after purchasing an additional 32 shares in the last quarter. Cox Capital Mgt LLC raised its position in shares of Zscaler by 0.6% in the 3rd quarter. Cox Capital Mgt LLC now owns 5,576 shares of the company’s stock valued at $1,671,000 after buying an additional 33 shares in the last quarter. Brookstone Capital Management lifted its holdings in shares of Zscaler by 3.7% during the 3rd quarter. Brookstone Capital Management now owns 936 shares of the company’s stock worth $280,000 after acquiring an additional 33 shares during the period. Wedbush Securities Inc. boosted its position in shares of Zscaler by 0.7% during the 3rd quarter. Wedbush Securities Inc. now owns 5,129 shares of the company’s stock worth $1,537,000 after acquiring an additional 34 shares in the last quarter. Finally, Goldstream Capital Management Ltd boosted its position in shares of Zscaler by 0.3% during the 3rd quarter. Goldstream Capital Management Ltd now owns 12,450 shares of the company’s stock worth $3,731,000 after acquiring an additional 34 shares in the last quarter. Institutional investors own 46.45% of the company’s stock.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Appointment of AI security leader positions Zscaler to monetize AI-era security: Zscaler named Dr. Swamy Kocherlakota EVP of Agentic AI Security Engineering to lead architecture-level defenses for autonomous AI agents, reinforcing Zscaler’s Zero Trust narrative and product differentiation. Zscaler Appoints Dr. Swamy Kocherlakota
• Positive Sentiment: Channel momentum: WEI achieved Zscaler Premier Partner status, which could help accelerate enterprise deployments for Zero Trust and secure AI use cases. That partnership supports sales/renewal growth at the customer-facing level. WEI Achieves Zscaler Premier Partner Status
• Positive Sentiment: Analyst and thematic bullishness / technical rebound signals: Multiple articles profile ZS as a long-term growth story (MSN, Zacks) and MarketBeat flagged ZS as an oversold security with improving momentum after strong revenue and an earnings beat — supportive for momentum investors. Why Zscaler is a top growth stock (MSN) Zacks coverage MarketBeat Oversold Stocks
• Neutral Sentiment: Citigroup trimmed its ZS price target from $350 to $305 but maintained a Buy rating — reduces some upside vs. prior consensus but keeps institutional support. Citigroup target cut (Benzinga)
• Neutral Sentiment: Analyst landscape: Coverage remains overwhelmingly positive (many Buy/Outperform ratings and diverse price targets), but targets vary widely — signaling conviction but also dispersion in near-term valuation expectations. 24 analyst projections (Benzinga)
• Negative Sentiment: Significant insider selling: Quiver/press summaries show repeated insider sales across senior executives (multiple large sales over the past 6 months), which can weigh on sentiment and raise governance/valuation questions for some investors. Quiver summary with insider activity

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.