Zscaler, Inc. (NASDAQ:ZS) Given Average Recommendation of “Moderate Buy” by Brokerages

Zscaler, Inc. (NASDAQ:ZS) has earned an average rating of “Moderate Buy” from the forty-three ratings firms that are presently covering the stock, MarketBeat reports. Two investment analysts have rated the stock with a sell recommendation, six have issued a hold recommendation, thirty-three have issued a buy recommendation and two have assigned a strong buy recommendation to the company. The average 12 month price target among brokerages that have covered the stock in the last year is $267.1316.

A number of equities research analysts have weighed in on the stock. Royal Bank Of Canada dropped their price target on shares of Zscaler from $250.00 to $205.00 and set an “outperform” rating for the company in a research report on Friday, February 27th. Cantor Fitzgerald decreased their price objective on shares of Zscaler from $365.00 to $300.00 and set an “overweight” rating on the stock in a report on Tuesday, February 24th. BMO Capital Markets lowered their price objective on shares of Zscaler from $315.00 to $210.00 and set an “outperform” rating for the company in a research report on Friday, February 27th. Morgan Stanley dropped their target price on shares of Zscaler from $305.00 to $200.00 and set an “overweight” rating for the company in a report on Friday, February 27th. Finally, Bank of America cut their target price on Zscaler from $355.00 to $335.00 and set a “buy” rating on the stock in a research report on Wednesday, November 26th.

Insiders Place Their Bets

In related news, EVP Raj Judge sold 2,488 shares of the stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $389,595.92. Following the transaction, the executive vice president owned 67,906 shares of the company’s stock, valued at approximately $10,633,400.54. This represents a 3.53% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Robert Schlossman sold 2,263 shares of the firm’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $354,363.17. Following the transaction, the insider owned 72,390 shares of the company’s stock, valued at $11,335,550.10. This trade represents a 3.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 9,027 shares of company stock valued at $1,459,333. Insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in ZS. Binnacle Investments Inc acquired a new position in shares of Zscaler in the third quarter valued at approximately $25,000. Tradewinds Capital Management LLC increased its stake in Zscaler by 145.7% during the 3rd quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock worth $26,000 after buying an additional 51 shares during the period. Root Financial Partners LLC acquired a new stake in Zscaler during the 3rd quarter worth approximately $26,000. McIlrath & Eck LLC acquired a new stake in Zscaler during the 3rd quarter worth approximately $29,000. Finally, Picton Mahoney Asset Management purchased a new position in Zscaler in the 3rd quarter valued at approximately $30,000. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler and Bharti Airtel launched an AI & Cyber Threat Research Center to jointly research AI-enabled threats and defenses — a partnership that expands Zscaler’s enterprise reach in APAC and strengthens its positioning in AI-related security services. Zscaler and Bharti Airtel announce launch of AI & Cyber Threat Research Center
• Positive Sentiment: Zscaler expanded global data‑sovereignty capabilities on its Zero Trust Exchange (new control/logging planes, Canada deployment planned), which supports sales to regulated customers and can drive longer-term subscription revenue growth. Zscaler (ZS) Expands Global Data Sovereignty Capabilities on Zero Trust Exchange
• Positive Sentiment: Analyst commentary singled Zscaler out as a cybersecurity winner in the current AI-driven market shift (zero‑trust access control seen as increasingly valuable), which could support re-rating over time if AI adoption fuels security spend. Software Stocks Are Down—Expert Says These 3 Names Still Look Strong
• Negative Sentiment: EVP Raj Judge sold 2,488 shares at ~$156.59 (~$389.6k); his holdings fell ~3.53% (SEC Form 4). Insider sales by senior leaders can weigh on near-term sentiment even if amounts are small vs. their remaining stakes. SEC Form 4 – Raj Judge
• Negative Sentiment: Insider Robert Schlossman sold 2,263 shares at ~$156.59 (~$354.4k), reducing his stake ~3.03% (SEC Form 4). SEC Form 4 – Robert Schlossman
• Negative Sentiment: CFO Kevin Rubin sold 1,682 shares at ~$156.59 (~$263.4k), a ~3.49% reduction in his direct holdings (SEC Form 4). SEC Form 4 – Kevin Rubin
• Negative Sentiment: CEO Jagtar Singh Chaudhry sold 1,941 shares at ~$156.59 (~$303.9k), a 0.56% reduction in his position (SEC Form 4). CEO sales often draw investor attention despite small percentage changes. SEC Form 4 – Jagtar Singh Chaudhry

Zscaler Stock Performance

NASDAQ ZS opened at $155.99 on Thursday. The stock has a fifty day simple moving average of $180.47 and a 200-day simple moving average of $244.35. The company has a current ratio of 1.90, a quick ratio of 1.90 and a debt-to-equity ratio of 0.78. The stock has a market cap of $25.08 billion, a PE ratio of -371.40 and a beta of 1.07. Zscaler has a twelve month low of $140.56 and a twelve month high of $336.99.

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

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.