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

Shares of Zscaler, Inc. (NASDAQ:ZS) have been assigned a consensus recommendation of “Moderate Buy” from the forty-three brokerages that are presently covering the stock, Marketbeat.com reports. One research analyst has rated the stock with a sell recommendation, eight have given a hold recommendation, thirty-three have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month price objective among brokerages that have updated their coverage on the stock in the last year is $317.6316.

Several equities research analysts have recently weighed in on the company. Royal Bank Of Canada decreased their price objective on Zscaler from $366.00 to $290.00 and set an “outperform” rating for the company in a report on Monday, January 5th. Needham & Company LLC decreased their price target on shares of Zscaler from $350.00 to $310.00 and set a “buy” rating for the company in a research note on Wednesday, November 26th. HC Wainwright restated a “buy” rating on shares of Zscaler in a research note on Wednesday, November 26th. Wedbush increased their target price on shares of Zscaler from $330.00 to $350.00 and gave the stock an “outperform” rating in a research note on Monday, November 10th. Finally, Rosenblatt Securities reissued a “buy” rating and set a $365.00 price target on shares of Zscaler in a report on Wednesday, November 26th.

Insiders Place Their Bets

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,843 shares of the company’s stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total transaction of $656,221.26. Following the completion of the transaction, the chief executive officer owned 347,857 shares in the company, valued at approximately $80,292,352.74. This represents a 0.81% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Adam Geller sold 2,060 shares of the firm’s stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total transaction of $475,489.20. Following the completion of the sale, the insider owned 52,148 shares of the company’s stock, valued at $12,036,801.36. This trade represents a 3.80% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 19,350 shares of company stock valued at $4,471,509. 17.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Binnacle Investments Inc purchased a new position in shares of Zscaler during the 3rd quarter worth approximately $25,000. Tradewinds Capital Management LLC grew its holdings in Zscaler by 145.7% during the third quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock worth $26,000 after acquiring an additional 51 shares during the period. Root Financial Partners LLC purchased a new position in Zscaler in the third quarter worth $26,000. McIlrath & Eck LLC purchased a new position in Zscaler in the third quarter worth $29,000. Finally, Quaker Wealth Management LLC lifted its holdings in Zscaler by 200.0% in the second quarter. Quaker Wealth Management LLC now owns 97 shares of the company’s stock valued at $30,000 after acquiring an additional 194 shares during the period. 46.45% of the stock is owned by hedge funds and other institutional investors.

Zscaler Price Performance

Shares of ZS opened at $200.01 on Wednesday. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.82 and a quick ratio of 1.82. Zscaler has a 1-year low of $164.78 and a 1-year high of $336.99. The stock has a market cap of $31.90 billion, a PE ratio of -769.24, a price-to-earnings-growth ratio of 3,287.29 and a beta of 1.02. The firm has a fifty day moving average price of $229.16 and a 200 day moving average price of $270.88.

Zscaler (NASDAQ:ZS) last posted its earnings results on Tuesday, November 25th. The company reported $0.96 EPS for the quarter, topping analysts’ consensus estimates of $0.85 by $0.11. The business had revenue of $788.11 million for the quarter, compared to analysts’ expectations of $773.86 million. Zscaler had a negative return on equity of 0.12% and a negative net margin of 1.45%.The business’s revenue was up 25.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.77 earnings per share. Zscaler has set its FY 2026 guidance at 3.780-3.820 EPS and its Q2 2026 guidance at 0.890-0.900 EPS. As a group, sell-side analysts anticipate 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.