Robert W. Baird Lowers Zscaler (NASDAQ:ZS) Price Target to $300.00

Zscaler (NASDAQ:ZS) had its price target dropped by analysts at Robert W. Baird from $360.00 to $300.00 in a research note issued on Monday,Benzinga reports. The brokerage currently has an “outperform” rating on the stock. Robert W. Baird’s price objective points to a potential upside of 108.31% from the company’s current price.

A number of other research firms also recently issued reports on ZS. Citigroup cut their price objective on shares of Zscaler from $350.00 to $305.00 and set a “buy” rating on the stock in a report on Tuesday, January 13th. Cantor Fitzgerald restated an “overweight” rating on shares of Zscaler in a report on Monday, February 9th. Stifel Nicolaus reduced their price objective on shares of Zscaler from $330.00 to $320.00 and set a “buy” rating for the company in a research report on Wednesday, November 26th. Citizens Jmp reiterated a “market outperform” rating and issued a $355.00 price objective on shares of Zscaler in a research note on Wednesday, November 26th. Finally, Loop Capital set a $320.00 target price on shares of Zscaler in a research report on Thursday, December 11th. One investment analyst has rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $302.35.

Zscaler Stock Down 9.8%

Shares of NASDAQ:ZS traded down $15.73 during midday trading on Monday, hitting $144.02. 2,723,148 shares of the company’s stock were exchanged, compared to its average volume of 2,199,960. 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 12 month low of $144.20 and a 12 month high of $336.99. The company has a market cap of $22.97 billion, a PE ratio of -552.67, a price-to-earnings-growth ratio of 325.66 and a beta of 1.02. The stock has a 50 day moving average price of $206.73 and a 200-day moving average price of $259.15.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings results on Tuesday, November 25th. The company reported $0.96 earnings per share for the quarter, beating the consensus estimate 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 net margin of 1.45% and a negative return on equity of 0.12%. The firm’s revenue for the quarter was up 25.5% compared to the same quarter last year. During the same quarter last year, the firm earned $0.77 EPS. Zscaler has set its FY 2026 guidance at 3.780-3.820 EPS and its Q2 2026 guidance at 0.890-0.900 EPS. On average, sell-side analysts anticipate that Zscaler will post -0.1 EPS for the current fiscal year.

Insider Activity at Zscaler

In related news, insider Robert Schlossman sold 2,349 shares of the firm’s stock in a transaction that occurred on Wednesday, December 17th. The shares were sold at an average price of $232.79, for a total transaction of $546,823.71. Following the completion of the sale, the insider owned 74,653 shares of the company’s stock, valued at $17,378,471.87. This trade represents a 3.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director James A. Beer sold 653 shares of the company’s stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $226.72, for a total value of $148,048.16. Following the completion of the transaction, the director directly owned 3,485 shares in the company, valued at $790,119.20. This trade represents a 15.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 19,350 shares of company stock worth $4,471,509 in the last ninety days. 17.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Zscaler

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Binnacle Investments Inc purchased a new stake in shares of Zscaler in the 3rd quarter worth $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 valued at $26,000 after purchasing an additional 51 shares during the period. Root Financial Partners LLC bought a new stake in Zscaler during the third quarter valued at about $26,000. McIlrath & Eck LLC purchased a new stake in Zscaler in the third quarter worth about $29,000. Finally, AlphaCentric Advisors LLC bought a new position in shares of Zscaler in the fourth quarter worth about $29,000. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler partnered with Bharti Airtel to launch an AI & cyber threat research center in India — expands presence in a large market and positions Zscaler to sell AI-driven security services to telco customers and enterprises. Bharti Airtel partners with Zscaler to launch AI & cyber threat research center Zscaler, Bharti Airtel Launch AI & Cyber Threat Research Center Zscaler and Airtel launch AI cyber threat research centre in India Zscaler partners with Bharti Airtel to launch AI & cyber threat research center
• Positive Sentiment: Bernstein upgraded Zscaler to Outperform and flagged valuation upside, which can support buying interest as investors look for relative value among cybersecurity peers. Bernstein Upgraded Zscaler to Outperform
• Neutral Sentiment: Zacks preview: Q2 revenue is expected to grow ~23% with AI-security demand highlighted, but analysts warn tight IT budgets and slower legacy ramps — this frames near-term upside vs. execution/renewal risk. Zscaler to Report Q2 Earnings: What’s in Store for the Stock?
• Negative Sentiment: CNBC: Anthropic released an AI tool that scans code for vulnerabilities — investors fear such automation could reduce the addressable market or pricing power for vendors like Zscaler, triggering a sector selloff. Cybersecurity stocks drop for a second day as new Anthropic tool fuels AI disruption fears
• Negative Sentiment: Coverage of the Anthropic tool’s market impact highlights big markdowns across peers and headlines saying billions were wiped from cybersecurity valuations — amplifies investor fear that AI will compress vendor revenues. As Anthropic’s new tool wipes away billions…
• Negative Sentiment: JPMorgan cut its Zscaler price target to $267, signaling reduced near-term upside in Street estimates and adding downward pressure on the stock. JPMorgan Cuts Zscaler Price Target
• Negative Sentiment: An analyst downgrade pushed Zscaler to a new 52-week low, a technical trigger that can accelerate selling as stop-losses and momentum funds react. Zscaler Hits New 52-Week Low After Analyst Downgrade

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.