Zscaler (NASDAQ:ZS) Trading 6% Higher Following Analyst Upgrade

Shares of Zscaler, Inc. (NASDAQ:ZS) shot up 6% on Monday after Zacks Research upgraded the stock from a strong sell rating to a hold rating. The stock traded as high as $140.99 and last traded at $141.19. 947,295 shares were traded during mid-day trading, a decline of 65% from the average session volume of 2,682,239 shares. The stock had previously closed at $133.16.

A number of other research firms have also commented on ZS. Oppenheimer reduced their price objective on Zscaler from $280.00 to $250.00 and set an “outperform” rating on the stock in a research note on Tuesday, March 10th. Sanford C. Bernstein upgraded Zscaler from a “market perform” rating to an “outperform” rating and set a $228.00 target price for the company in a research note on Friday, February 13th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $280.00 price target on shares of Zscaler in a report on Tuesday, February 24th. JPMorgan Chase & Co. reduced their price target on shares of Zscaler from $354.00 to $267.00 and set an “overweight” rating on the stock in a research report on Friday, February 20th. Finally, BMO Capital Markets lowered their price objective on shares of Zscaler from $315.00 to $210.00 and set an “outperform” rating for the company in a research report on Friday, February 27th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Zscaler has a consensus rating of “Moderate Buy” and an average target price of $267.86.

Insider Buying and Selling at Zscaler

In related news, insider Robert Schlossman sold 2,263 shares of the firm’s stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $354,363.17. Following the transaction, the insider owned 72,390 shares in the company, valued at $11,335,550.10. This trade represents a 3.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Raj Judge sold 2,488 shares of the business’s stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $389,595.92. Following the sale, the executive vice president directly owned 67,906 shares of the company’s stock, valued at $10,633,400.54. This represents a 3.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 12,783 shares of company stock valued at $2,040,536 over the last ninety days. Company insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On Zscaler

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Groupama Asset Managment raised its position in shares of Zscaler by 76,352.6% during the 3rd quarter. Groupama Asset Managment now owns 4,750,000 shares of the company’s stock valued at $1,423,385,000 after acquiring an additional 4,743,787 shares during the last quarter. Federated Hermes Inc. boosted its position in shares of Zscaler by 314.0% in the 2nd quarter. Federated Hermes Inc. now owns 1,171,983 shares of the company’s stock worth $367,932,000 after purchasing an additional 888,888 shares during the last quarter. Price T Rowe Associates Inc. MD grew its stake in shares of Zscaler by 43.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company’s stock worth $578,576,000 after purchasing an additional 777,414 shares during the period. AQR Capital Management LLC grew its stake in shares of Zscaler by 61.8% during the third quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company’s stock worth $576,083,000 after purchasing an additional 741,756 shares during the period. Finally, Vanguard Group Inc. increased its holdings in Zscaler by 6.1% in the third quarter. Vanguard Group Inc. now owns 11,367,903 shares of the company’s stock valued at $3,406,506,000 after purchasing an additional 652,771 shares during the last quarter. 46.45% of the stock is owned by institutional investors.

Zscaler Stock Down 2.6%

The business has a fifty day moving average of $167.68 and a 200 day moving average of $235.60. The company has a quick ratio of 1.90, a current ratio of 1.90 and a debt-to-equity ratio of 0.78. The firm has a market cap of $21.96 billion, a P/E ratio of -324.66 and a beta of 1.07.

Zscaler (NASDAQ:ZS) last issued its earnings results on Thursday, February 26th. The company reported $1.01 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.89 by $0.12. The firm had revenue of $815.75 million for the quarter, compared to analysts’ expectations of $798.92 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The company’s revenue was up 25.9% compared to the same quarter last year. During the same quarter last year, the business earned $0.78 earnings per share. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. On average, equities research analysts predict that Zscaler, Inc. 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.