Zscaler (NASDAQ:ZS) Price Target Raised to $225.00

Zscaler (NASDAQ:ZS) had its target price raised by Stephens from $200.00 to $225.00 in a report released on Friday, MarketBeat reports. They currently have an overweight rating on the stock.

A number of other equities analysts also recently commented on the stock. Morgan Stanley decreased their price objective on shares of Zscaler from $155.00 to $145.00 and set an “equal weight” rating for the company in a report on Wednesday, May 27th. UBS Group dropped their target price on shares of Zscaler from $260.00 to $225.00 and set a “buy” rating on the stock in a report on Wednesday, May 27th. Evercore set a $155.00 price target on shares of Zscaler and gave the stock an “in-line” rating in a research report on Wednesday, May 27th. Wells Fargo & Company lifted their price target on shares of Zscaler from $210.00 to $215.00 and gave the company an “overweight” rating in a report on Friday. Finally, Weiss Ratings raised shares of Zscaler from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Thursday, August 27th. Thirty-four research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $215.90.

Zscaler Stock Performance

Shares of NASDAQ ZS opened at $169.80 on Friday. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 0.65. The stock’s 50 day moving average price is $161.26 and its two-hundred day moving average price is $150.34. Zscaler has a 52-week low of $114.63 and a 52-week high of $336.99. The stock has a market capitalization of $27.69 billion, a P/E ratio of -435.38, a PEG ratio of 99.94 and a beta of 0.95.

Zscaler (NASDAQ:ZS) last issued its earnings results on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, topping the consensus estimate of $1.09 by $0.10. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%.The company had revenue of $898.19 million during the quarter, compared to analyst estimates of $876.96 million. During the same quarter last year, the firm earned $0.89 EPS. The business’s revenue was up 24.9% on a year-over-year basis. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. On average, analysts anticipate that Zscaler will post 0.13 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Adam Geller sold 2,817 shares of the business’s stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $122.60, for a total transaction of $345,364.20. Following the completion of the transaction, the insider owned 42,314 shares of the company’s stock, valued at approximately $5,187,696.40. The trade was a 6.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Schlossman sold 3,146 shares of the company’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $397,748.78. Following the transaction, the insider owned 69,366 shares of the company’s stock, valued at $8,769,943.38. This represents a 4.34% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 16,772 shares of company stock worth $2,139,799. 17.20% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of ZS. Binnacle Investments Inc bought a new stake in shares of Zscaler during the third quarter valued at approximately $25,000. AlphaCentric Advisors LLC acquired a new position in shares of Zscaler during the fourth quarter worth approximately $29,000. University of Texas Texas AM Investment Management Co. acquired a new position in shares of Zscaler during the fourth quarter worth approximately $30,000. POM Investment Strategies LLC grew its holdings in Zscaler by 92.9% in the 2nd quarter. POM Investment Strategies LLC now owns 218 shares of the company’s stock worth $31,000 after buying an additional 105 shares in the last quarter. Finally, Mcguire Capital Advisors Inc. bought a new position in Zscaler in the 4th quarter worth approximately $32,000. Institutional investors own 46.45% of the company’s stock.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Strong fiscal fourth-quarter results: Zscaler reported adjusted EPS of $1.19 versus the $1.09 consensus and revenue of $898.2 million versus $877.0 million expected. Revenue and annual recurring revenue (ARR) each increased 25% year over year, while non-GAAP operating margin reached a record 24%. Zscaler Announces Strong Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: AI and platform demand remain catalysts: Management highlighted growing demand for Security for AI, Agentic SecOps, non-seat-based products and large enterprise deals. Analysts including Baird, Stephens, Needham, Canaccord and Cantor raised price targets, generally citing the earnings beat and potential for conservative guidance to be exceeded. Zscaler Analysts Boost Their Forecasts After Better-Than-Expected Q4 Earnings
• Neutral Sentiment: Analyst opinion is divided: Some analysts called the fiscal 2027 outlook overly cautious and maintained bullish ratings, while others noted that the forecast reflects competitive pressure, the Red Canary acquisition and a more measured growth profile.
• Negative Sentiment: Fiscal 2027 growth is expected to decelerate: Zscaler guided for revenue growth of 16.6% to 17.5% and ARR growth of 16.6% to 17.4%, well below the 25% growth delivered in fiscal 2026. The slower outlook overshadowed the quarterly beat and renewed valuation concerns for high-growth cybersecurity stocks. Zscaler Fiscal 2027 Growth Forecast
• Negative Sentiment: Free cash flow weakened sharply: Fourth-quarter free cash flow fell 65% year over year to $60.8 million, versus approximately $66.9 million expected, as capital expenditures and internal-use software spending increased. Zscaler also announced a restructuring affecting about 3% of its workforce, adding execution concerns. Zscaler Shares Fall Despite Earnings Beat

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.