Zscaler (NASDAQ:ZS) Stock Price Up 9.8% – Time to Buy?

Zscaler, Inc. (NASDAQ:ZS) shares rose 9.8% during mid-day trading on Monday . The stock traded as high as $153.54 and last traded at $153.4850. Approximately 2,287,115 shares changed hands during trading, a decline of 33% from the average daily volume of 3,397,417 shares. The stock had previously closed at $139.73.

Analysts Set New Price Targets

ZS has been the topic of several research reports. HC Wainwright raised Zscaler from a “buy” rating to a “buy” rating in a research note on Monday, May 18th. Wells Fargo & Company decreased their target price on Zscaler from $210.00 to $180.00 and set an “overweight” rating on the stock in a research note on Thursday. The Goldman Sachs Group reissued a “neutral” rating and set a $179.00 target price on shares of Zscaler in a research note on Wednesday. Mizuho decreased their target price on Zscaler from $210.00 to $185.00 and set an “outperform” rating on the stock in a research note on Wednesday, May 27th. Finally, Sanford C. Bernstein decreased their target price on Zscaler from $228.00 to $224.00 and set an “outperform” rating on the stock in a research note on Wednesday, May 27th. Thirty-three analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $216.03.

Zscaler Stock Up 10.3%

The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86. The company has a market cap of $24.92 billion, a price-to-earnings ratio of -320.35 and a beta of 0.97. The business has a 50-day simple moving average of $144.36 and a 200-day simple moving average of $188.63.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.01 by $0.07. The company had revenue of $850.48 million for the quarter, compared to analyst estimates of $835.14 million. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.Zscaler’s revenue for the quarter was up 25.4% compared to the same quarter last year. During the same quarter last year, the company 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 analysts anticipate that Zscaler, Inc. will post -0.03 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Kevin Rubin sold 1,682 shares of the stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $263,384.38. Following the transaction, the chief financial officer owned 46,479 shares in the company, valued at approximately $7,278,146.61. This represents a 3.49% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Raj Judge sold 2,488 shares of the stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $389,595.92. Following the completion of the transaction, the executive vice president owned 67,906 shares in the company, valued at approximately $10,633,400.54. The trade was a 3.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 12,130 shares of company stock worth $1,892,487. 17.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Binnacle Investments Inc purchased a new position in shares of Zscaler in the 3rd quarter valued at about $25,000. Picton Mahoney Asset Management purchased a new position in shares of Zscaler in the 3rd quarter valued at about $30,000. AlphaCentric Advisors LLC purchased a new position in shares of Zscaler in the 4th quarter valued at about $29,000. University of Texas Texas AM Investment Management Co. purchased a new position in shares of Zscaler in the 4th quarter valued at about $30,000. Finally, Mcguire Capital Advisors Inc. purchased a new position in shares of Zscaler in the 4th quarter valued at about $32,000. Hedge funds and other 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.