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

Zscaler, Inc. (NASDAQ:ZS) has been given a consensus rating of “Moderate Buy” by the forty-three brokerages that are presently covering the firm, Marketbeat reports. One analyst has rated the stock with a sell recommendation, eight have issued a hold recommendation, thirty-three have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price target among brokers that have updated their coverage on the stock in the last year is $317.6316.

A number of research analysts recently issued reports on ZS shares. Piper Sandler decreased their target price on shares of Zscaler from $280.00 to $260.00 and set a “neutral” rating for the company in a research report on Monday, January 5th. Morgan Stanley set a $305.00 price objective on Zscaler in a report on Thursday, December 18th. Royal Bank Of Canada dropped their target price on Zscaler from $366.00 to $290.00 and set an “outperform” rating on the stock in a report on Monday, January 5th. Cantor Fitzgerald reiterated an “overweight” rating on shares of Zscaler in a research report on Wednesday, November 26th. Finally, Citigroup lowered their price objective on Zscaler from $350.00 to $305.00 and set a “buy” rating on the stock in a research report on Tuesday, January 13th.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler launched the Zscaler AI Security Suite — a bundled set of capabilities for AI asset inventory, secure access, and runtime protection; integrations with OpenAI, Microsoft, AWS and alignment with NIST/EU AI rules position ZS as a go‑to vendor for enterprises accelerating AI. Zscaler Unveils New Innovations to Secure Enterprise AI Adoption
• Positive Sentiment: Zscaler’s ThreatLabz 2026 AI Security Report found rapid AI adoption and widespread vulnerabilities (median time to first critical failure ~16 minutes), which creates a clear market need for Zero Trust AI controls — a potential demand catalyst for ZS security products. Zscaler 2026 AI Threat Report: 91% Year-over-Year Surge in AI Activity Creates Growing Oversight Gap for Global Enterprises
• Neutral Sentiment: Multiple outlets flagged ZS as a top mover today and highlighted the new AI announcements as the proximate cause of buying interest. Media coverage is reinforcing the product narrative to traders. Why Zscaler (ZS) Stock Is Up Today
• Neutral Sentiment: Analyst attention remains supportive: recent Zacks/other coverage and numerous buy/overweight ratings and price targets well above current levels provide a favorable analyst backdrop; earlier quarterly results showed strong revenue growth and an EPS beat, which underpins confidence. Zscaler (ZS) Outperforms Broader Market: What You Need to Know
• Negative Sentiment: Quiver/coverage flags heavy insider selling activity in recent months and highlights the report’s disclosure/forward‑looking caveats — potential short‑term overhang if investors view insider sales or integration risks negatively. Zscaler Reports Critical AI Security Vulnerabilities Amid Rapid Adoption Growth

Zscaler Price Performance

Shares of ZS opened at $219.67 on Wednesday. The firm has a market capitalization of $35.03 billion, a PE ratio of -844.85, a price-to-earnings-growth ratio of 3,526.27 and a beta of 1.02. 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 1-year low of $164.78 and a 1-year high of $336.99. The company’s fifty day moving average price is $233.80 and its 200-day moving average price is $272.67.

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

Insiders Place Their Bets

In related news, insider Adam Geller sold 2,060 shares of the company’s stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $475,489.20. Following the completion of the transaction, the insider owned 52,148 shares of the company’s stock, valued at approximately $12,036,801.36. This represents a 3.80% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Robert Schlossman sold 3,084 shares of the firm’s stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total value of $711,848.88. Following the completion of the sale, the insider directly owned 77,002 shares in the company, valued at approximately $17,773,601.64. The trade was a 3.85% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 19,350 shares of company stock valued at $4,471,509. Insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On Zscaler

Hedge funds and other institutional investors have recently modified their holdings of the business. Binnacle Investments Inc acquired a new stake in Zscaler in the 3rd quarter valued at about $25,000. Tradewinds Capital Management LLC grew its position in shares of Zscaler by 145.7% in the third quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock valued at $26,000 after purchasing an additional 51 shares in the last quarter. Root Financial Partners LLC purchased a new stake in shares of Zscaler in the third quarter valued at approximately $26,000. McIlrath & Eck LLC acquired a new stake in shares of Zscaler in the third quarter valued at approximately $29,000. Finally, Quaker Wealth Management LLC lifted its position in Zscaler by 200.0% during the second quarter. Quaker Wealth Management LLC now owns 97 shares of the company’s stock worth $30,000 after buying an additional 194 shares in the last quarter. 46.45% of the stock is owned by hedge funds and other institutional investors.

About Zscaler

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.