Stephens Reiterates Overweight Rating for Zscaler (NASDAQ:ZS)

Zscaler (NASDAQ:ZS)‘s stock had its “overweight” rating reissued by investment analysts at Stephens in a research note issued on Friday,Benzinga reports. They presently have a $200.00 target price on the stock. Stephens’ price target would indicate a potential upside of 58.59% from the stock’s previous close.

Other equities research analysts also recently issued research reports about the company. Berenberg Bank set a $200.00 target price on Zscaler in a report on Thursday, May 28th. Citigroup reiterated a “market outperform” rating on shares of Zscaler in a research note on Wednesday, May 27th. Zacks Research raised shares of Zscaler from a “strong sell” rating to a “hold” rating in a report on Wednesday, May 27th. FBN Securities restated an “outperform” rating and set a $175.00 target price on shares of Zscaler in a research report on Wednesday, May 27th. Finally, Wolfe Research reaffirmed an “outperform” rating and set a $150.00 target price on shares of Zscaler in a report on Thursday. Thirty-four equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Zscaler presently has an average rating of “Moderate Buy” and a consensus price target of $214.33.

Zscaler Stock Performance

ZS opened at $126.11 on Friday. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. Zscaler has a 12-month low of $114.63 and a 12-month high of $336.99. The business has a 50 day moving average of $142.69 and a 200-day moving average of $178.18. The stock has a market cap of $20.39 billion, a price-to-earnings ratio of -262.72, a PEG ratio of 77.99 and a beta of 0.97.

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

Insider Buying and Selling at Zscaler

In other Zscaler news, insider Robert Schlossman sold 2,263 shares of the firm’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $354,363.17. Following the sale, the insider owned 72,390 shares of the company’s stock, valued at approximately $11,335,550.10. This trade represents a 3.03% decrease in their position. The sale 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 Zscaler stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total value of $321,491.82. Following the completion of 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 12,130 shares of company stock worth $1,892,487 in the last three months. Company insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of ZS. Binnacle Investments Inc acquired a new stake in shares of Zscaler in the 3rd quarter valued at approximately $25,000. Picton Mahoney Asset Management bought a new position in Zscaler in the 3rd quarter valued at approximately $30,000. AlphaCentric Advisors LLC bought a new position in Zscaler in the 4th quarter valued at approximately $29,000. University of Texas Texas AM Investment Management Co. acquired a new stake in Zscaler in the fourth quarter valued at approximately $30,000. Finally, Mcguire Capital Advisors Inc. bought a new stake in shares of Zscaler during the fourth quarter worth $32,000. Institutional investors own 46.45% of the company’s stock.

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.