TD Cowen Cuts Zscaler (NASDAQ:ZS) Price Target to $260.00

Zscaler (NASDAQ:ZS) had its price target lowered by TD Cowen from $330.00 to $260.00 in a report published on Tuesday morning,Benzinga reports. The brokerage currently has a buy rating on the stock.

A number of other research firms also recently commented on ZS. Stifel Nicolaus dropped their price objective on shares of Zscaler from $330.00 to $320.00 and set a “buy” rating for the company in a research note on Wednesday, November 26th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $250.00 price target on shares of Zscaler in a research report on Wednesday, February 11th. HC Wainwright reaffirmed a “buy” rating on shares of Zscaler in a research note on Wednesday, November 26th. Wedbush lifted their price target on shares of Zscaler from $330.00 to $350.00 and gave the company an “outperform” rating in a report on Monday, November 10th. Finally, Barclays set a $220.00 price objective on Zscaler in a report on Thursday, February 19th. One investment analyst has rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $293.84.

Zscaler Price Performance

ZS stock opened at $167.36 on Tuesday. The stock has a market capitalization of $26.69 billion, a price-to-earnings ratio of -643.67, a price-to-earnings-growth ratio of 317.40 and a beta of 1.02. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.86. Zscaler has a 52-week low of $141.56 and a 52-week high of $336.99. The stock’s fifty day simple moving average is $200.63 and its 200-day simple moving average is $256.06.

Zscaler (NASDAQ:ZS) last released its earnings results on Tuesday, November 25th. The company reported $0.96 earnings per share for the quarter, topping the consensus estimate of $0.85 by $0.11. Zscaler had a negative return on equity of 0.12% and a negative net margin of 1.45%.The firm had revenue of $788.11 million for the quarter, compared to the consensus estimate of $773.86 million. During the same period in the prior year, the business posted $0.77 earnings per share. The firm’s revenue for the quarter was up 25.5% compared to the same quarter last year. Equities research analysts expect that Zscaler will post -0.1 EPS for the current year.

Insider Transactions at Zscaler

In other news, insider Adam Geller sold 1,620 shares of the company’s stock in a transaction dated Wednesday, December 17th. The stock was sold at an average price of $232.79, for a total value of $377,119.80. Following the completion of the sale, the insider owned 50,528 shares of the company’s stock, valued at $11,762,413.12. This represents a 3.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director James A. Beer sold 653 shares of the stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $226.72, for a total value of $148,048.16. Following the completion of the sale, the director owned 3,485 shares of the company’s stock, valued at approximately $790,119.20. This trade represents a 15.78% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 19,350 shares of company stock worth $4,471,509 in the last quarter. 17.20% of the stock is owned by corporate insiders.

Institutional Trading of Zscaler

Hedge funds and other institutional investors have recently modified their holdings of the business. Westpac Banking Corp increased its holdings in shares of Zscaler by 919.0% in the 3rd quarter. Westpac Banking Corp now owns 9,986 shares of the company’s stock valued at $2,992,000 after acquiring an additional 9,006 shares during the last quarter. VestGen Advisors LLC acquired a new position in Zscaler in the second quarter worth $1,592,000. Brookstone Capital Management bought a new stake in Zscaler during the second quarter valued at $283,000. Mackenzie Financial Corp raised its holdings in shares of Zscaler by 133.6% during the second quarter. Mackenzie Financial Corp now owns 14,780 shares of the company’s stock worth $4,640,000 after purchasing an additional 8,454 shares during the period. Finally, Schroder Investment Management Group lifted its position in shares of Zscaler by 11.5% in the 2nd quarter. Schroder Investment Management Group now owns 164,061 shares of the company’s stock worth $51,505,000 after buying an additional 16,868 shares during the last quarter. 46.45% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Beat on earnings and revenue: Zscaler reported $1.01 GAAP-adjusted EPS and $815.8M revenue, both above consensus, showing 26% revenue growth year-over-year. Zscaler (ZS) Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Strong ARR and cash flow: ARR rose ~25% to $3.36B and operating/free cash flow improved, and the company raised ARR guidance to ~24%, supporting longer-term subscription growth expectations. Zscaler Announces Strong Second-Quarter Fiscal 2026 Results; Raises Fiscal 2026 ARR Guidance to 24%
• Positive Sentiment: Raised profitability guidance: Zscaler issued Q3 and FY‑2026 EPS targets that were above street EPS expectations, indicating management expects improving adjusted profitability. Press Release / Earnings Presentation
• Neutral Sentiment: AI/security momentum: Analysts and commentary highlighted rapid growth in Zscaler’s AI Security initiatives (a new revenue pillar), which could offset SaaS-seat risks over time but remains early-stage for valuation proof. Zscaler’s AI-Powered Security: A Compelling Case For Aggressive Growth Investors
• Negative Sentiment: Wider net loss on higher spending: The company reported a larger GAAP net loss driven by increased sales, marketing and R&D investment in a competitive market — a key reason for the post‑close share decline. Zscaler posts wider quarterly loss on higher spending; shares down 9%
• Negative Sentiment: Lowered revenue outlook / guidance confusion: Some reports and analyst takes flagged a reduced FY revenue outlook or more cautious revenue commentary, which compounded investor concern despite EPS beats. ZScaler Stock Drops After Q2 Earnings, Lowered Revenue Guidance
• Negative Sentiment: Analyst pushback and downgrades: Following the print, several firms issued cautious takes or price-target cuts, increasing near-term selling pressure. Zscaler (NASDAQ:ZS) Shares Down 8.6% Following Analyst Downgrade

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.