Zscaler (NASDAQ:ZS) Now Covered by Wells Fargo & Company

Wells Fargo & Company assumed coverage on shares of Zscaler (NASDAQ:ZS) in a research report released on Tuesday, MarketBeat reports. The brokerage issued an overweight rating and a $200.00 price target on the stock.

Several other brokerages have also recently commented on ZS. Rosenblatt Securities reiterated a “buy” rating and issued a $280.00 price objective on shares of Zscaler in a research note on Tuesday, February 24th. Wedbush increased their target price on shares of Zscaler from $330.00 to $350.00 and gave the company an “outperform” rating in a report on Monday, November 10th. Robert W. Baird reduced their price target on shares of Zscaler from $360.00 to $300.00 and set an “outperform” rating for the company in a research report on Monday, February 23rd. BMO Capital Markets decreased their price target on Zscaler from $315.00 to $210.00 and set an “outperform” rating on the stock in a research note on Friday, February 27th. Finally, Morgan Stanley lowered their price target on Zscaler from $305.00 to $200.00 and set an “overweight” rating on the stock in a report on Friday, February 27th. One analyst has rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, six have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $267.92.

Zscaler Stock Performance

Shares of ZS stock opened at $154.67 on Tuesday. 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 50 day simple moving average of $195.76 and a 200-day simple moving average of $253.19. The company has a market cap of $24.87 billion, a price-to-earnings ratio of -368.26, a price-to-earnings-growth ratio of 210.65 and a beta of 1.07. Zscaler has a 12-month low of $140.56 and a 12-month high of $336.99.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings data on Thursday, February 26th. The company reported $1.01 earnings per share for the quarter, topping analysts’ consensus estimates of $0.89 by $0.12. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The firm had revenue of $815.75 million for the quarter, compared to analyst estimates of $798.92 million. During the same quarter in the prior year, the company posted $0.78 earnings per share. Zscaler’s quarterly 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. On average, equities analysts forecast that Zscaler will post -0.1 EPS for the current year.

Insider Activity at Zscaler

In related news, EVP Raj Judge sold 3,438 shares of Zscaler stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total value of $793,559.16. Following the sale, the executive vice president directly owned 70,394 shares in the company, valued at $16,248,343.08. This trade represents a 4.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Jagtar Singh Chaudhry sold 2,843 shares of the business’s stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total transaction of $656,221.26. Following the transaction, the chief executive officer directly owned 347,857 shares of the company’s stock, valued at $80,292,352.74. The trade was a 0.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 19,350 shares of company stock valued at $4,471,509. Company insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On Zscaler

Several institutional investors have recently bought and sold shares of the stock. Ovata Capital Management Ltd acquired a new position in Zscaler during the 4th quarter valued at about $873,000. Reflection Asset Management acquired a new stake in shares of Zscaler in the 4th quarter worth approximately $40,000. Virtu Financial LLC bought a new position in shares of Zscaler in the fourth quarter valued at approximately $2,305,000. Sunbelt Securities Inc. boosted its holdings in shares of Zscaler by 92.9% in the fourth quarter. Sunbelt Securities Inc. now owns 3,755 shares of the company’s stock valued at $845,000 after acquiring an additional 1,808 shares in the last quarter. Finally, Kovitz Investment Group Partners LLC increased its stake in shares of Zscaler by 618.0% during the fourth quarter. Kovitz Investment Group Partners LLC now owns 6,785 shares of the company’s stock valued at $1,526,000 after acquiring an additional 5,840 shares during the period. Institutional investors and hedge funds own 46.45% of the company’s stock.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Wells Fargo initiated coverage with an “Overweight” rating and a $200 price target, giving the stock meaningful upside from current levels. Zscaler receives Overweight rating as Wells Fargo initiates coverage
• Positive Sentiment: Reported FQ2 2026 results topped estimates: revenue ~$816M (+26% YoY), ARR growth ~25% to ~$3.4B, and EPS ahead of consensus — management set FY26 EPS guidance (3.99–4.02). These fundamentals support renewed investor confidence. Zscaler (ZS) Reports Record FQ2 2026 Revenue Driven by Massive Enterprise Adoption
• Positive Sentiment: Strategic AI and partner initiatives: Zscaler and Bharti Airtel launched a national AI & Cyber Threat Research Center in India to accelerate AI‑driven security research and talent development, and Zscaler expanded AI/security platform integrations with TCS (AI‑driven workspace platform). These deals deepen enterprise reach in high‑growth markets. Zscaler Airtel AI Research Hub Tests Growth Potential Versus Rising Losses TCS, Zscaler launch AI-driven workspace platform for enterprises
• Positive Sentiment: Market commentary highlights Zscaler as oversold and potentially a rebound candidate given strong secular cybersecurity demand and institutional accumulation — this narrative can attract value/technical buyers. 2 Bad News Buys: Why Palo Alto and Zscaler Are Screaming Deals
• Neutral Sentiment: Investor interest/flow signals and options activity are drawing attention (coverage and “whale” option trades), which can amplify moves but are not a directional fundamental change. This Is What Whales Are Betting On Zscaler
• Neutral Sentiment: Zscaler presented at the Morgan Stanley TMT conference — useful for incremental investor color but no single headline change from the event. Zscaler Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript
• Negative Sentiment: Numerous sell‑side firms have trimmed price targets recently (Morgan Stanley, Mizuho, RBC, BMO, Piper Sandler, Needham, Oppenheimer, etc.), signaling more cautious near‑term analyst sentiment despite some buy/overweight calls — this broad re‑rating is a headwind for the stock. Mizuho Cuts Zscaler Price Target (example of broader cuts)

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.