Zscaler’s (ZS) Neutral Rating Reiterated at BTIG Research

BTIG Research reiterated their neutral rating on shares of Zscaler (NASDAQ:ZS) in a research note published on Wednesday morning,Benzinga reports.

Other equities analysts have also issued reports about the stock. Wolfe Research reiterated an “outperform” rating and issued a $150.00 price target on shares of Zscaler in a research report on Thursday, June 11th. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of Zscaler in a research note on Friday, September 4th. Citigroup upped their target price on shares of Zscaler from $205.00 to $245.00 and gave the stock a “buy” rating in a report on Wednesday. Weiss Ratings upgraded Zscaler from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday, September 24th. Finally, Roth Capital reissued a “neutral” rating and set a $170.00 price target on shares of Zscaler in a report on Saturday, September 5th. Thirty-five analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $239.41.

Zscaler Trading Up 7.8%

Shares of NASDAQ:ZS opened at $233.73 on Wednesday. The stock has a 50 day moving average of $186.15 and a 200 day moving average of $157.22. The company has a market cap of $38.11 billion, a PE ratio of -599.31, a price-to-earnings-growth ratio of 20.84 and a beta of 0.94. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 0.65. Zscaler has a 12-month low of $114.63 and a 12-month high of $336.99.

Zscaler (NASDAQ:ZS) last released its earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.09 by $0.10. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The company had revenue of $898.19 million during the quarter, compared to analyst estimates of $876.96 million. During the same period in the prior year, the firm posted $0.89 EPS. The firm’s quarterly revenue was up 24.9% compared to the same quarter last year. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. As a group, equities research analysts expect that Zscaler will post 0.69 EPS for the current year.

Insider Activity at Zscaler

In other Zscaler news, CEO Jagtar Chaudhry sold 2,852 shares of Zscaler stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $192.76, for a total value of $549,751.52. Following the sale, the chief executive officer directly owned 340,186 shares in the company, valued at approximately $65,574,253.36. The trade was a 0.83% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Adam Geller sold 5,578 shares of the business’s stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $192.76, for a total transaction of $1,075,215.28. Following the completion of the sale, the insider owned 43,553 shares in the company, valued at approximately $8,395,276.28. The trade was a 11.35% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 29,053 shares of company stock worth $5,610,165 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 made changes to their positions in the company. Riversedge Advisors LLC purchased a new stake in shares of Zscaler in the third quarter worth about $275,000. Wedmont Private Capital purchased a new position in Zscaler during the 3rd quarter valued at approximately $246,000. GAMMA Investing LLC grew its holdings in Zscaler by 13.9% during the 3rd quarter. GAMMA Investing LLC now owns 805 shares of the company’s stock valued at $161,000 after buying an additional 98 shares in the last quarter. Farther Finance Advisors LLC grew its holdings in Zscaler by 79.8% during the 3rd quarter. Farther Finance Advisors LLC now owns 3,691 shares of the company’s stock valued at $736,000 after buying an additional 1,638 shares in the last quarter. Finally, Valeo Financial Advisors LLC bought a new stake in Zscaler in the 3rd quarter worth approximately $308,000. 46.45% of the stock is owned by institutional investors.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reaffirmed its fiscal 2027 outlook, including quarterly revenue of approximately $935 million–$939 million and full-year revenue of about $3.91 billion–$3.94 billion. Maintaining guidance appears to have eased concerns about a potential slowdown in cloud-security spending. Zscaler Is Up After Reaffirming 2027 Outlook and Expanding AI Security Partnership
• Positive Sentiment: The company announced a security collaboration with IBM and Red Hat to help protect private applications during the period between vulnerability disclosure and software patching. The partnership reinforces Zscaler’s positioning in AI-enabled, zero-trust security. Zscaler Jumps on Reaffirmed Revenue Outlook and IBM Security Pact
• Positive Sentiment: Zscaler outlined ambitious long-term recurring-revenue goals, including more than $8 billion of organic annual recurring revenue by fiscal 2031. Investors viewed the targets as evidence of substantial multi-year growth potential. Zscaler Expects More Than $8 Billion in Organic ARR by FY31
• Positive Sentiment: Analyst sentiment improved, with Citizens JMP raising its price target to $265 and UBS lifting its target to $250 while assigning a Buy rating. RBC, Truist, BNP Paribas Exane, Wedbush, and Cantor Fitzgerald also maintained positive views.
• Neutral Sentiment: Amerx initiated coverage with a Buy rating, adding another favorable opinion but with limited detail on valuation or financial estimates. Amerx Initiates Coverage of Zscaler at Buy
• Negative Sentiment: Some analysts cautioned that the long-term ARR ambitions may be difficult to achieve, while investors continue to weigh slowing growth, rising costs, and the need for stronger customer expansion. A law firm’s investigation of potential investor claims adds a secondary overhang, although no wrongdoing has been established. Jefferies Says Zscaler’s Long-Term ARR Target Looks Ambitious

Zscaler Company Profile

Zscaler, Inc is a cloud-based cybersecurity company that provides security services designed to help organizations connect users, applications, devices and workloads securely. Its platform is built around a zero-trust security model, which verifies access based on identity, context and policy rather than relying primarily on traditional network perimeters.

The company’s offerings include Zscaler Internet Access, which helps secure internet and software-as-a-service access, and Zscaler Private Access, which provides controlled access to private applications without extending an organization’s network to remote users.