JPMorgan Chase & Co. Has Lowered Expectations for Zscaler (NASDAQ:ZS) Stock Price

Zscaler (NASDAQ:ZS) had its target price decreased by investment analysts at JPMorgan Chase & Co. from $354.00 to $267.00 in a report released on Friday,Benzinga reports. The firm presently has an “overweight” rating on the stock. JPMorgan Chase & Co.‘s price objective would suggest a potential upside of 66.34% from the company’s current price.

Other research analysts have also recently issued research reports about the company. Berenberg Bank lowered their target price on Zscaler from $400.00 to $390.00 and set a “buy” rating for the company in a research note on Friday, November 28th. Wedbush lifted their price target on shares of Zscaler from $330.00 to $350.00 and gave the company an “outperform” rating in a report on Monday, November 10th. Macquarie Infrastructure began coverage on shares of Zscaler in a research report on Friday, October 31st. They set an “outperform” rating and a $390.00 price objective for the company. Needham & Company LLC cut their target price on shares of Zscaler from $350.00 to $310.00 and set a “buy” rating on the stock in a research report on Wednesday, November 26th. Finally, Loop Capital set a $320.00 target price on shares of Zscaler in a research note on Thursday, December 11th. One research analyst has rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $304.78.

Zscaler Price Performance

NASDAQ:ZS traded down $8.48 during mid-day trading on Friday, reaching $160.51. The stock had a trading volume of 2,105,144 shares, compared to its average volume of 2,147,584. The stock has a 50-day simple moving average of $208.26 and a two-hundred day simple moving average of $260.39. The stock has a market capitalization of $25.60 billion, a PE ratio of -617.35, a P/E/G ratio of 350.89 and a beta of 1.02. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.82 and a quick ratio of 1.82. Zscaler has a 12 month low of $161.50 and a 12 month high of $336.99.

Zscaler (NASDAQ:ZS) last released its earnings results on Tuesday, November 25th. The company reported $0.96 earnings per share for the quarter, topping the consensus estimate of $0.85 by $0.11. Zscaler had a negative return on equity of 0.12% and a negative net margin of 1.45%.The firm had revenue of $788.11 million during the quarter, compared to analysts’ expectations of $773.86 million. During the same period in the prior year, the company earned $0.77 earnings per share. The company’s quarterly revenue was up 25.5% on a year-over-year basis. Zscaler has set its FY 2026 guidance at 3.780-3.820 EPS and its Q2 2026 guidance at 0.890-0.900 EPS. On average, equities analysts anticipate that Zscaler will post -0.1 earnings per share for the current year.

Insiders Place Their Bets

In other Zscaler news, EVP Raj Judge sold 3,438 shares of the firm’s stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total value of $793,559.16. Following the completion of the sale, the executive vice president directly owned 70,394 shares in the company, valued at $16,248,343.08. This trade represents a 4.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CFO Kevin Rubin sold 3,303 shares of Zscaler stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total value of $762,398.46. Following the sale, the chief financial officer directly owned 48,161 shares in the company, valued at approximately $11,116,522.02. The trade was a 6.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 19,350 shares of company stock worth $4,471,509. Company insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Binnacle Investments Inc bought a new position in Zscaler during the third quarter valued at approximately $25,000. Tradewinds Capital Management LLC raised its stake in Zscaler by 145.7% during the 3rd quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock valued at $26,000 after buying an additional 51 shares during the last quarter. Root Financial Partners LLC bought a new position in shares of Zscaler during the 3rd quarter valued at $26,000. McIlrath & Eck LLC purchased a new position in shares of Zscaler in the 3rd quarter worth $29,000. Finally, AlphaCentric Advisors LLC bought a new stake in shares of Zscaler in the fourth quarter worth $29,000. Hedge funds and other institutional investors own 46.45% of the company’s stock.

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.