Zscaler, Inc. (NASDAQ:ZS) Given Average Recommendation of “Moderate Buy” by Brokerages

Shares of Zscaler, Inc. (NASDAQ:ZS) have earned an average rating of “Moderate Buy” from the forty-three brokerages that are covering the company, Marketbeat reports. Two analysts have rated the stock with a sell recommendation, six have assigned a hold recommendation, thirty-three have issued a buy recommendation and two have given a strong buy recommendation to the company. The average 12 month price target among analysts that have issued a report on the stock in the last year is $267.1316.

ZS has been the subject of several recent analyst reports. Zacks Research downgraded shares of Zscaler from a “hold” rating to a “strong sell” rating in a research note on Thursday, February 26th. Sanford C. Bernstein raised Zscaler from a “market perform” rating to an “outperform” rating and set a $228.00 target price on the stock in a research note on Friday, February 13th. JPMorgan Chase & Co. reduced their price target on Zscaler from $354.00 to $267.00 and set an “overweight” rating on the stock in a report on Friday, February 20th. Needham & Company LLC lowered their price target on Zscaler from $310.00 to $180.00 and set a “buy” rating for the company in a research report on Friday, February 27th. Finally, UBS Group dropped their price objective on Zscaler from $350.00 to $340.00 and set a “buy” rating for the company in a report on Wednesday, November 26th.

Insider Activity

In related news, insider Robert Schlossman sold 2,263 shares of Zscaler stock in a transaction on Tuesday, March 17th. The shares were 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 in the company, valued at $11,335,550.10. The trade was a 3.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Kevin Rubin sold 1,682 shares of the business’s stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $263,384.38. Following the transaction, the chief financial officer directly owned 46,479 shares in the company, valued at approximately $7,278,146.61. The trade was a 3.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 12,783 shares of company stock valued at $2,040,536. 17.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Zscaler

Several institutional investors and hedge funds have recently modified their holdings of the stock. Binnacle Investments Inc bought a new stake in shares of Zscaler during the 3rd quarter valued at about $25,000. Tradewinds Capital Management LLC raised its stake in Zscaler by 145.7% in the third quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock worth $26,000 after buying an additional 51 shares in the last quarter. Root Financial Partners LLC bought a new position in Zscaler in the third quarter worth 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 stake in Zscaler during the 4th quarter valued at approximately $29,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

Zscaler Stock Up 0.2%

Shares of Zscaler stock opened at $151.80 on Thursday. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.90 and a current ratio of 1.90. Zscaler has a 52-week low of $140.56 and a 52-week high of $336.99. The company’s 50 day moving average price is $176.58 and its 200-day moving average price is $241.63. The stock has a market capitalization of $24.41 billion, a price-to-earnings ratio of -361.43 and a beta of 1.07.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Thursday, February 26th. The company reported $1.01 EPS for the quarter, beating analysts’ consensus estimates of $0.89 by $0.12. The company had revenue of $815.75 million during the quarter, compared to analyst estimates of $798.92 million. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The firm’s revenue was up 25.9% compared to the same quarter last year. During the same period in the prior year, the business posted $0.78 EPS. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. Equities research analysts forecast that Zscaler will post -0.1 EPS for the current year.

About Zscaler

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.