Zscaler (NASDAQ:ZS) Given Buy Rating at Truist Financial

Zscaler (NASDAQ:ZS)‘s stock had its “buy” rating reaffirmed by equities research analysts at Truist Financial in a research report issued to clients and investors on Wednesday, Benzinga reports. They presently have a $250.00 price objective on the stock, up from their previous price objective of $200.00. Truist Financial’s price target points to a potential upside of 17.68% from the company’s current price.

Several other equities research analysts also recently issued reports on ZS. Mizuho set a $235.00 price objective on shares of Zscaler in a research report on Wednesday. Scotiabank boosted their price objective on shares of Zscaler from $240.00 to $255.00 and gave the company a “sector outperform” rating in a research report on Wednesday. Jefferies Financial Group reaffirmed a “buy” rating and issued a $250.00 target price on shares of Zscaler in a research note on Wednesday. JPMorgan Chase & Co. increased their target price on Zscaler from $215.00 to $245.00 and gave the stock an “overweight” rating in a report on Wednesday. Finally, Roth Capital reissued a “neutral” rating and issued a $170.00 price target on shares of Zscaler in a research note on Saturday, September 5th. Thirty-four analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Zscaler currently has a consensus rating of “Moderate Buy” and an average target price of $236.15.

Zscaler Stock Up 0.1%

Shares of ZS traded up $0.18 on Wednesday, hitting $212.43. The company’s stock had a trading volume of 1,255,581 shares, compared to its average volume of 3,360,584. 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 firm’s fifty day moving average price is $181.94 and its 200-day moving average price is $155.82. Zscaler has a fifty-two week low of $114.63 and a fifty-two week high of $336.99. The firm has a market capitalization of $34.64 billion, a price-to-earnings ratio of -546.43, a P/E/G ratio of 21.03 and a beta of 0.94.

Zscaler (NASDAQ:ZS) last announced 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. The firm had revenue of $898.19 million for the quarter, compared to the consensus estimate of $876.96 million. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The business’s quarterly revenue was up 24.9% on a year-over-year basis. During the same period last year, the company posted $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. On average, equities research analysts expect that Zscaler will post 0.7 EPS for the current year.

Insider Buying and Selling at Zscaler

In other news, CEO Jagtar Chaudhry sold 2,852 shares of the firm’s stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $192.76, for a total value 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 trade represents a 0.83% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Robert Schlossman sold 5,394 shares of the company’s stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $200.00, for a total value of $1,078,800.00. Following the sale, the insider owned 61,525 shares in the company, valued at $12,305,000. The trade was a 8.06% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 29,053 shares of company stock valued at $5,610,165. Corporate insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On Zscaler

Several large investors have recently made changes to their positions in the stock. Bangor Savings Bank grew its stake in shares of Zscaler by 2.0% in the third quarter. Bangor Savings Bank now owns 8,273 shares of the company’s stock valued at $1,650,000 after buying an additional 165 shares in the last quarter. Moody National Bank Trust Division raised its position in Zscaler by 57.8% during the third quarter. Moody National Bank Trust Division now owns 3,091 shares of the company’s stock worth $616,000 after acquiring an additional 1,132 shares in the last quarter. CX Institutional raised its position in Zscaler by 15.9% during the third quarter. CX Institutional now owns 611 shares of the company’s stock worth $122,000 after acquiring an additional 84 shares in the last quarter. Versant Capital Management Inc lifted its stake in Zscaler by 45.6% in the third quarter. Versant Capital Management Inc now owns 230 shares of the company’s stock valued at $46,000 after acquiring an additional 72 shares during the last quarter. Finally, Burkett Financial Services LLC acquired a new stake in Zscaler in the third quarter valued at $27,000. Institutional investors and hedge funds own 46.45% of the company’s stock.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Investor Day guidance reaffirmed: Zscaler maintained its first-quarter and full-year fiscal 2027 guidance, reducing near-term execution concerns. Management also highlighted AI-driven demand, expansion beyond its core user-security business, and a long-term path toward approximately $10 billion in annual recurring revenue. Zscaler Investor Day and fiscal 2027 guidance
• Positive Sentiment: Analysts raised price targets: Needham lifted its target to $255 and upgraded ZS to Buy; Cantor Fitzgerald raised its target to $275; Robert W. Baird increased its target to $285; and Wedbush raised its target to $240 while reiterating Outperform. RBC also maintained Outperform with a $236 target. The upgrades suggest analysts see additional upside after the Investor Day presentation.
• Positive Sentiment: AI security opportunity expanded: Zscaler announced a collaboration with IBM and Red Hat to protect private applications during vulnerability windows. The partnership combines Zscaler’s Autonomous Application Shield with remediation tools from IBM and Red Hat, potentially broadening Zscaler’s enterprise reach as companies address AI-enabled cyber threats. Zscaler IBM and Red Hat partnership
• Neutral Sentiment: Analyst disagreement remains: BTIG reaffirmed a Neutral rating, while Morgan Stanley raised its target to $185 but kept an Equal Weight rating. Morgan Stanley’s target remains below the current trading level, highlighting valuation and execution concerns ahead of the next earnings report.
• Negative Sentiment: Investor lawsuit inquiry: Pomerantz LLP announced an investigation into potential claims on behalf of Zscaler investors. No allegations or findings were detailed, but such announcements can create headline and legal overhang for the stock. Pomerantz Zscaler investor investigation

Zscaler Company Profile

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.