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

Shares of Zscaler, Inc. (NASDAQ:ZS) have been assigned an average rating of “Moderate Buy” from the forty-one research firms that are covering the stock, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell rating, six have given a hold rating and thirty-four have issued a buy rating on the company. The average twelve-month price target among brokerages that have covered the stock in the last year is $214.2051.

A number of equities analysts have commented on the stock. Sanford C. Bernstein cut their price target on shares of Zscaler from $228.00 to $224.00 and set an “outperform” rating for the company in a research note on Wednesday, May 27th. Wedbush restated an “outperform” rating and set a $220.00 price objective on shares of Zscaler in a research report on Wednesday, June 10th. Scotiabank dropped their price objective on shares of Zscaler from $190.00 to $175.00 and set a “sector outperform” rating for the company in a report on Wednesday, May 27th. Berenberg Bank set a $200.00 target price on shares of Zscaler in a research report on Thursday, May 28th. Finally, Barclays reduced their target price on Zscaler from $180.00 to $170.00 and set an “overweight” rating on the stock in a research note on Wednesday, May 27th.

Insider Transactions at Zscaler

In related news, insider Robert Schlossman sold 3,146 shares of the firm’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $397,748.78. Following the transaction, the insider directly owned 69,366 shares of the company’s stock, valued at approximately $8,769,943.38. This trade represents a 4.34% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Adam Geller sold 2,817 shares of the business’s stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $122.60, for a total value of $345,364.20. Following the completion of the sale, the insider owned 42,314 shares of the company’s stock, valued at $5,187,696.40. The trade was a 6.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 15,766 shares of company stock worth $1,978,587. 17.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Binnacle Investments Inc purchased a new stake in shares of Zscaler in the 3rd quarter valued at $25,000. AlphaCentric Advisors LLC purchased a new position in Zscaler in the 4th quarter worth $29,000. University of Texas Texas AM Investment Management Co. bought a new stake in Zscaler in the fourth quarter worth $30,000. Mcguire Capital Advisors Inc. bought a new stake in Zscaler in the fourth quarter worth $32,000. Finally, Family CFO Inc purchased a new stake in Zscaler during the fourth quarter valued at about $34,000. 46.45% of the stock is currently owned by institutional investors.

Zscaler Stock Performance

Shares of ZS opened at $148.72 on Wednesday. Zscaler has a 12-month low of $114.63 and a 12-month high of $336.99. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72. The company has a market cap of $24.05 billion, a PE ratio of -309.83, a price-to-earnings-growth ratio of 85.86 and a beta of 0.96. The stock has a 50-day moving average price of $143.92 and a 200-day moving average price of $158.11.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, topping the consensus estimate of $1.01 by $0.07. The company had revenue of $850.48 million for the quarter, compared to analysts’ expectations of $835.14 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. Zscaler’s revenue for the quarter was up 25.4% compared to the same quarter last year. During the same period in the prior year, the business earned $0.84 earnings per share. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. As a group, equities analysts forecast that Zscaler will post 0.12 earnings per share for the current fiscal year.

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.