Zscaler (NASDAQ:ZS) Trading Up 1.1% – Time to Buy?

Zscaler, Inc. (NASDAQ:ZS)’s share price shot up 1.1% during mid-day trading on Thursday . The company traded as high as $126.35 and last traded at $126.11. 3,778,057 shares traded hands during trading, an increase of 5% from the average session volume of 3,602,568 shares. The stock had previously closed at $124.73.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Several analysts reiterated bullish views on Zscaler, including Canaccord Genuity, Wedbush, Royal Bank of Canada, Guggenheim, Rosenblatt, and Needham, with price targets ranging from $180 to $220, suggesting substantial upside from current levels. Analyst rating updates via Benzinga
• Positive Sentiment: Zscaler’s Zenith Live announcements highlighted new AI-era security products, including the ZAgent Framework and expanded Zero Trust SASE capabilities, which could support future demand and product adoption. Zscaler Redefines Zero Trust SASE for the AI Era
• Positive Sentiment: Management and industry coverage emphasized strong AI and cloud security demand, and Zscaler research showed rising cybercrime sophistication, reinforcing the need for its platform. Zscaler Still Seeing Solid Demand for Cloud, AI Products, Wedbush Says
• Neutral Sentiment: Zscaler also unveiled research showing AI is changing phishing tactics, which supports the company’s security narrative but is not an immediate financial catalyst. Zscaler Research Finds Cybercrime Economics Are Shifting as AI Trades Mass Volume for Lethal Precision
• Negative Sentiment: Multiple law firms announced or expanded securities-law investigations into Zscaler, creating headline risk and likely weighing on sentiment. ZS Investors Have Opportunity to Join Zscaler, Inc. Fraud Investigation with the Schall Law Firm
• Negative Sentiment: Recent commentary highlighted that Zscaler is trading near its 52-week low, with FY27 guidance signaling slower growth, which has fueled concerns about valuation and near-term momentum. Zscaler Trades Near 52-Week Low: Time to Hold the Stock or Exit?

Analyst Upgrades and Downgrades

ZS has been the topic of several research analyst reports. FBN Securities reissued an “outperform” rating and set a $175.00 target price on shares of Zscaler in a research note on Wednesday, May 27th. TD Cowen reaffirmed a “buy” rating on shares of Zscaler in a research note on Wednesday, May 27th. Royal Bank Of Canada restated an “outperform” rating and set a $200.00 price target on shares of Zscaler in a report on Wednesday. Zacks Research upgraded Zscaler from a “strong sell” rating to a “hold” rating in a research note on Wednesday, May 27th. Finally, Barclays cut their target price on Zscaler from $180.00 to $170.00 and set an “overweight” rating on the stock in a report on Wednesday, May 27th. Thirty-four equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $214.33.

Zscaler Stock Up 1.1%

The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. The company has a market capitalization of $20.39 billion, a P/E ratio of -262.72, a PEG ratio of 78.68 and a beta of 0.97. The firm has a 50-day moving average price of $142.97 and a two-hundred day moving average price of $179.23.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, beating the consensus estimate of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The company had revenue of $850.48 million during the quarter, compared to analysts’ expectations of $835.14 million. During the same period in the prior year, the business earned $0.84 earnings per share. Zscaler’s revenue for the quarter was up 25.4% compared to the same quarter last year. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Equities research analysts anticipate that Zscaler, Inc. will post 0.11 EPS for the current fiscal year.

Insider Activity at Zscaler

In other news, CEO Jagtar Singh Chaudhry sold 1,941 shares of the business’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $303,941.19. Following the transaction, the chief executive officer owned 345,916 shares in the company, valued at approximately $54,166,986.44. The trade was a 0.56% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Adam Geller sold 2,094 shares of the business’s stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total transaction of $321,491.82. Following the transaction, the insider owned 46,949 shares in the company, valued at approximately $7,208,079.97. The trade was a 4.27% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 12,130 shares of company stock worth $1,892,487. Insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Binnacle Investments Inc bought a new position in shares of Zscaler during the 3rd quarter worth about $25,000. AlphaCentric Advisors LLC bought a new position in shares of Zscaler during the 4th quarter worth about $29,000. Picton Mahoney Asset Management bought a new position in shares of Zscaler during the 3rd quarter worth about $30,000. University of Texas Texas AM Investment Management Co. bought a new position in shares of Zscaler during the 4th quarter worth about $30,000. Finally, Mcguire Capital Advisors Inc. bought a new position in shares of Zscaler during the 4th quarter worth about $32,000. Institutional investors own 46.45% of the company’s stock.

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.