Canaccord Genuity Group Lowers Zscaler (NASDAQ:ZS) Price Target to $275.00

Zscaler (NASDAQ:ZS) had its target price reduced by equities research analysts at Canaccord Genuity Group from $340.00 to $275.00 in a report issued on Friday,Benzinga reports. The firm presently has a “buy” rating on the stock. Canaccord Genuity Group’s price objective suggests a potential upside of 87.09% from the company’s previous close.

Several other brokerages also recently weighed in on ZS. Piper Sandler reduced their target price on Zscaler from $260.00 to $185.00 and set a “neutral” rating for the company in a research note on Friday. Wedbush boosted their price target on shares of Zscaler from $330.00 to $350.00 and gave the stock an “outperform” rating in a report on Monday, November 10th. Citizens Jmp decreased their price objective on shares of Zscaler from $355.00 to $290.00 and set a “market outperform” rating on the stock in a report on Friday. HC Wainwright reissued a “buy” rating on shares of Zscaler in a research note on Wednesday, November 26th. Finally, Bank of America reduced their price target on shares of Zscaler from $355.00 to $335.00 and set a “buy” rating for the company in a research report on Wednesday, November 26th. One investment analyst has rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, Zscaler presently has a consensus rating of “Moderate Buy” and a consensus target price of $274.37.

Zscaler Trading Down 12.2%

Shares of Zscaler stock opened at $146.99 on Friday. The firm has a 50-day simple moving average of $198.92 and a two-hundred day simple moving average of $255.06. The company has a market cap of $23.44 billion, a P/E ratio of -349.98, a price-to-earnings-growth ratio of 299.64 and a beta of 1.02. Zscaler has a fifty-two week low of $140.56 and a fifty-two week high of $336.99. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.82 and a current ratio of 1.82.

Zscaler (NASDAQ:ZS) last posted its earnings results on Thursday, February 26th. The company reported $1.01 EPS for the quarter, beating analysts’ consensus estimates of $0.89 by $0.12. The firm had revenue of $815.75 million for the quarter, compared to analysts’ expectations of $798.92 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The company’s quarterly revenue was up 25.9% on a year-over-year basis. During the same period last year, the firm earned $0.78 EPS. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. As a group, equities analysts predict that Zscaler will post -0.1 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, EVP Raj Judge sold 3,438 shares of the company’s stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $793,559.16. Following the completion of the sale, the executive vice president directly owned 70,394 shares in the company, valued at $16,248,343.08. This represents a 4.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Jagtar Singh Chaudhry sold 2,843 shares of Zscaler stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $656,221.26. Following the transaction, the chief executive officer owned 347,857 shares in the company, valued at approximately $80,292,352.74. The trade was a 0.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 19,350 shares of company stock worth $4,471,509 in the last 90 days. Corporate insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

Hedge funds and other institutional investors have recently modified their holdings of the stock. Integrated Wealth Concepts LLC raised its holdings in shares of Zscaler by 19.9% during the 1st quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company’s stock worth $285,000 after acquiring an additional 239 shares during the period. NewEdge Advisors LLC increased its position in Zscaler by 8.2% during the first quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock worth $972,000 after purchasing an additional 370 shares during the last quarter. Empowered Funds LLC raised its stake in Zscaler by 9.2% during the first quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock worth $558,000 after purchasing an additional 238 shares during the period. Sivia Capital Partners LLC acquired a new position in Zscaler in the 2nd quarter valued at about $252,000. Finally, Wealthfront Advisers LLC boosted its holdings in Zscaler by 1.8% in the 2nd quarter. Wealthfront Advisers LLC now owns 6,788 shares of the company’s stock valued at $2,131,000 after purchasing an additional 118 shares during the last quarter. 46.45% of the stock is owned by institutional investors and hedge funds.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Q2 results beat: adjusted EPS $1.01 vs. $0.89 est., revenue $815.8M vs. ~$799M est., and ARR grew ~25% year/year — signals demand momentum. GlobeNewswire: Q2 Results
• Positive Sentiment: Management is pitching AI security growth and new initiatives (AI Guard, agentic security, India AI/Cyber center with Airtel) as durable secular drivers that expand TAM beyond seat-based SaaS. CFO Interview Airtel AI Center
• Neutral Sentiment: Management issued updated forward guidance and commentary (Q3 EPS range and FY EPS range were provided), creating mixed signals that markets are parsing. Earnings Highlights
• Neutral Sentiment: Executives (CEO & CFO) gave interviews and the full call transcript is available — useful for investors wanting detail on churn, acquisitions and how AI monetization will scale. Earnings Call Transcript
• Negative Sentiment: Wider GAAP loss and higher spending: the company posted a larger net loss driven by increased sales, marketing and R&D, which pressured investor sentiment. Reuters: Wider Loss
• Negative Sentiment: Mixed/uncertain revenue outlook commentary: some outlets reported the company lowered aspects of its revenue outlook, creating confusion and weighing on the stock despite EPS beats. Benzinga: Revenue Guidance Report
• Negative Sentiment: Broad analyst price‑target cuts today from multiple firms (Canaccord, Morgan Stanley, Oppenheimer, Berenberg, Needham, and others) have amplified selling pressure even as many kept “buy/outperform” stances — the cuts compress perception of near‑term upside. MarketScreener: Analyst Cuts
• Negative Sentiment: Market reaction: investors appear to be focusing on margin/expense trajectory, competitive pressure and near-term revenue clarity rather than the company’s AI growth story — producing the stock decline. Seeking Alpha: Market Reaction

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.