Zscaler (NASDAQ:ZS) Trading Up 6% on Analyst Upgrade

Shares of Zscaler, Inc. (NASDAQ:ZS) traded up 6% during mid-day trading on Monday after Zacks Research upgraded the stock from a strong sell rating to a hold rating. The stock traded as high as $140.99 and last traded at $141.19. 947,295 shares were traded during mid-day trading, a decline of 65% from the average session volume of 2,682,239 shares. The stock had previously closed at $133.16.

A number of other research firms have also recently commented on ZS. Piper Sandler lowered their price target on shares of Zscaler from $260.00 to $185.00 and set a “neutral” rating on the stock in a report on Friday, February 27th. BTIG Research dropped their price target on Zscaler from $365.00 to $209.00 and set a “buy” rating on the stock in a research report on Tuesday, February 24th. KeyCorp cut their price target on Zscaler from $300.00 to $250.00 and set an “overweight” rating for the company in a research note on Tuesday, February 17th. Barclays set a $220.00 price objective on Zscaler in a report on Thursday, February 19th. Finally, Citizens Jmp dropped their price objective on shares of Zscaler from $355.00 to $290.00 and set a “market outperform” rating on the stock in a report on Friday, February 27th. Two analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $267.86.

Insider Buying and Selling

In other Zscaler news, insider Robert Schlossman sold 2,263 shares of the stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $354,363.17. Following the sale, the insider directly owned 72,390 shares in the company, valued at $11,335,550.10. This represents a 3.03% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Adam Geller sold 2,094 shares of the firm’s stock in a transaction on 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 transaction, the insider directly owned 46,949 shares of the company’s stock, valued at approximately $7,208,079.97. The trade was a 4.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 12,783 shares of company stock valued at $2,040,536 in the last three months. Insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On Zscaler

Several large investors have recently added to or reduced their stakes in the business. Binnacle Investments Inc purchased a new stake in shares of Zscaler in the 3rd quarter valued at about $25,000. Tradewinds Capital Management LLC increased its position in shares of Zscaler by 145.7% in the third quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock worth $26,000 after purchasing an additional 51 shares during the last quarter. Root Financial Partners LLC bought a new position in shares of Zscaler in the third quarter worth approximately $26,000. McIlrath & Eck LLC purchased a new stake in Zscaler in the third quarter valued at approximately $29,000. Finally, AlphaCentric Advisors LLC purchased a new stake in Zscaler in the fourth quarter valued at approximately $29,000. Institutional investors own 46.45% of the company’s stock.

Zscaler Trading Down 2.5%

The company has a quick ratio of 1.90, a current ratio of 1.90 and a debt-to-equity ratio of 0.78. The firm has a market capitalization of $21.99 billion, a P/E ratio of -326.43 and a beta of 1.07. The firm’s 50-day simple moving average is $167.68 and its 200-day simple moving average is $235.60.

Zscaler (NASDAQ:ZS) last issued its quarterly earnings results on Thursday, February 26th. The company reported $1.01 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 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 firm earned $0.78 EPS. The business’s revenue for the quarter was up 25.9% compared to the same quarter last year. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. Analysts anticipate that Zscaler, Inc. 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.