Zscaler (NASDAQ:ZS) Earns “Outperform” Rating from Wedbush

Zscaler (NASDAQ:ZS)‘s stock had its “outperform” rating restated by equities researchers at Wedbush in a research report issued to clients and investors on Monday, Benzinga reports. They presently have a $215.00 price target on the stock. Wedbush’s price objective suggests a potential upside of 8.39% from the company’s current price.

ZS has been the topic of a number of other reports. Guggenheim restated a “buy” rating on shares of Zscaler in a report on Friday. Canaccord Genuity Group reissued a “buy” rating and set a $210.00 target price on shares of Zscaler in a research report on Friday, September 4th. Jefferies Financial Group restated a “buy” rating and issued a $220.00 price target on shares of Zscaler in a report on Wednesday, September 2nd. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating on shares of Zscaler in a research report on Friday, September 4th. Finally, Rosenblatt Securities reiterated a “buy” rating and set a $200.00 price objective on shares of Zscaler in a research note on Friday, September 4th. Thirty-four research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $219.78.

Zscaler Stock Performance

Shares of ZS stock opened at $198.35 on Monday. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.70 and a current ratio of 1.70. The firm has a market capitalization of $32.34 billion, a price-to-earnings ratio of -508.59, a price-to-earnings-growth ratio of 20.78 and a beta of 0.95. Zscaler has a one year low of $114.63 and a one year high of $336.99. The company has a 50 day moving average price of $176.23 and a 200 day moving average price of $154.14.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, beating analysts’ consensus estimates of $1.09 by $0.10. The company had revenue of $898.19 million for the quarter, compared to analyst estimates of $876.96 million. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. Zscaler’s revenue for the quarter was up 24.9% on a year-over-year basis. During the same quarter last year, the business earned $0.89 EPS. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. Sell-side analysts anticipate that Zscaler will post 0.7 EPS for the current year.

Insider Buying and Selling at Zscaler

In related news, Director James Beer sold 177 shares of Zscaler stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $192.01, for a total transaction of $33,985.77. Following the sale, the director owned 4,030 shares of the company’s stock, valued at $773,800.30. The trade was a 4.21% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jagtar Chaudhry sold 2,852 shares of the business’s stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $192.76, for a total transaction of $549,751.52. Following the completion of the transaction, the chief executive officer owned 340,186 shares in the company, valued at $65,574,253.36. This represents a 0.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 29,175 shares of company stock worth $5,628,465. 17.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. WINTON GROUP Ltd grew its stake in Zscaler by 56.5% during the 2nd quarter. WINTON GROUP Ltd now owns 4,890 shares of the company’s stock valued at $690,000 after purchasing an additional 1,765 shares in the last quarter. NewEdge Advisors LLC boosted its stake in shares of Zscaler by 7.8% during the 2nd quarter. NewEdge Advisors LLC now owns 4,626 shares of the company’s stock valued at $653,000 after buying an additional 336 shares during the last quarter. Hudock Inc. purchased a new position in shares of Zscaler during the 2nd quarter valued at approximately $311,000. Allworth Financial LP increased its stake in shares of Zscaler by 7.7% in the second quarter. Allworth Financial LP now owns 3,578 shares of the company’s stock worth $505,000 after buying an additional 256 shares during the last quarter. Finally, Arizona State Retirement System increased its stake in shares of Zscaler by 6.4% in the second quarter. Arizona State Retirement System now owns 29,965 shares of the company’s stock worth $4,230,000 after buying an additional 1,799 shares during the last quarter. Hedge funds and other institutional investors own 46.45% of the company’s stock.

About Zscaler

Zscaler, Inc is a cloud-based cybersecurity company that provides security services designed to help organizations connect users, applications, devices and workloads securely. Its platform is built around a zero-trust security model, which verifies access based on identity, context and policy rather than relying primarily on traditional network perimeters.

The company’s offerings include Zscaler Internet Access, which helps secure internet and software-as-a-service access, and Zscaler Private Access, which provides controlled access to private applications without extending an organization’s network to remote users.