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

Shares of Zscaler, Inc. (NASDAQ:ZS) have been assigned a consensus recommendation of “Moderate Buy” from the forty-three research firms that are currently covering the company, Marketbeat.com 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 target price among brokerages that have updated their coverage on the stock in the last year is $267.1316.

A number of equities analysts have issued reports on the stock. Scotiabank cut their target price on shares of Zscaler from $334.00 to $320.00 and set a “sector outperform” rating on the stock in a report on Wednesday, November 26th. Bank of America lowered their target price on Zscaler from $355.00 to $335.00 and set a “buy” rating for the company in a report on Wednesday, November 26th. Cantor Fitzgerald dropped their price target on Zscaler from $365.00 to $300.00 and set an “overweight” rating on the stock in a research report on Tuesday, February 24th. The Goldman Sachs Group cut their price target on Zscaler from $290.00 to $257.00 and set a “neutral” rating on the stock in a report on Monday, March 2nd. Finally, HC Wainwright restated a “buy” rating on shares of Zscaler in a research report on Wednesday, November 26th.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Rising adoption of Z‑Flex — Zscaler’s flexible, multi‑year subscription model is gaining traction, which management and analysts view as a growth driver because it simplifies procurement and encourages broader platform uptake. Will the Rising Adoption of Z-Flex Boost Zscaler’s Revenue Growth?
• Positive Sentiment: Technology partnership with P0 Security — The alliance extends Zscaler’s Zero Trust access for private resources, reinforcing product relevance in enterprises modernizing access controls and potentially helping sales into security-conscious customers. P0 Security Announces Technology Partnership with Zscaler to Advance Zero Trust for Private Resources
• Positive Sentiment: Institutional interest — Brown Advisory’s Mid‑Cap Growth strategy established a position in ZS, signaling continued institutional demand from active managers who see long‑term growth potential. Here’s Why Brown Advisory Mid-Cap Growth Established a Position in Zscaler (ZS)
• Positive Sentiment: CEO messaging on AI and reliability — Management emphasized that AI won’t replace mission‑critical traffic inspection that requires 100% reliability, reinforcing Zscaler’s value proposition and differentiation in enterprise security. Zscaler CEO: AI can’t replace mission-critical traffic inspection requiring 100% reliability
• Neutral Sentiment: Trending stock coverage — Zacks flagged ZS as a trending stock, which may increase short‑term retail attention but doesn’t directly change fundamentals. Zscaler, Inc. (ZS) Is a Trending Stock: Facts to Know Before Betting on It
• Neutral Sentiment: Noisy/ambiguous short‑interest data — Multiple reports claim a large March short‑interest increase, but the published figures show zeros and NaN changes, suggesting data errors; unclear impact until accurate short‑interest prints are available.
• Negative Sentiment: New 1‑year low headline — Coverage noting ZS has reached a one‑year low fuels negative sentiment and may pressure momentum traders and sentiment‑driven flows. Zscaler (NASDAQ:ZS) Reaches New 1-Year Low – What’s Next?

Insider Buying and Selling

In related news, CFO Kevin Rubin sold 1,682 shares of the stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $263,384.38. Following the sale, the chief financial officer owned 46,479 shares of the company’s stock, valued at $7,278,146.61. This trade represents a 3.49% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Adam Geller sold 2,094 shares of Zscaler stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total transaction of $321,491.82. Following the completion of the sale, the insider owned 46,949 shares in the company, valued at approximately $7,208,079.97. This represents a 4.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 12,783 shares of company stock valued at $2,040,536 in the last three months. 17.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Zscaler

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

Zscaler Stock Up 0.0%

ZS stock opened at $139.44 on Thursday. The firm has a market cap of $22.42 billion, a price-to-earnings ratio of -332.00 and a beta of 1.07. Zscaler has a 1-year low of $138.85 and a 1-year high of $336.99. The firm has a fifty day moving average price of $173.53 and a two-hundred day moving average price of $239.97. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.90 and a quick ratio of 1.90.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Thursday, February 26th. The company reported $1.01 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 company had revenue of $815.75 million for the quarter, compared to the consensus estimate of $798.92 million. During the same period last year, the firm posted $0.78 EPS. The company’s revenue for the quarter 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. Research analysts predict that Zscaler will post -0.1 EPS for the current 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.