Wedbush Lowers Zscaler (NASDAQ:ZS) Price Target to $220.00

Zscaler (NASDAQ:ZS) had its target price cut by Wedbush from $300.00 to $220.00 in a note issued to investors on Wednesday,MarketScreener reports. The firm presently has an “outperform” rating on the stock. Wedbush’s price objective suggests a potential upside of 63.28% from the stock’s current price.

A number of other research analysts also recently weighed in on the stock. Needham & Company LLC restated a “buy” rating and set a $180.00 price target on shares of Zscaler in a report on Wednesday. BMO Capital Markets cut their price target on Zscaler from $210.00 to $178.00 and set an “outperform” rating for the company in a report on Wednesday. BTIG Research reissued a “neutral” rating on shares of Zscaler in a research note on Thursday, April 9th. KeyCorp boosted their target price on shares of Zscaler from $160.00 to $190.00 and gave the company an “overweight” rating in a research note on Monday, May 18th. Finally, The Goldman Sachs Group reissued a “neutral” rating and set a $179.00 price target on shares of Zscaler in a report on Wednesday. Two analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, seven have given a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat, Zscaler has an average rating of “Moderate Buy” and a consensus target price of $229.36.

Zscaler Trading Down 27.0%

Shares of NASDAQ:ZS opened at $134.74 on Wednesday. The firm has a fifty day moving average of $145.75 and a two-hundred day moving average of $192.65. The company has a quick ratio of 1.90, a current ratio of 1.90 and a debt-to-equity ratio of 0.78. Zscaler has a 12-month low of $114.63 and a 12-month high of $336.99. The firm has a market capitalization of $21.66 billion, a P/E ratio of -318.90 and a beta of 0.96.

Zscaler (NASDAQ:ZS) last released its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.01 by $0.07. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The firm had revenue of $850.48 million during the quarter, compared to analysts’ expectations of $835.60 million. During the same quarter last year, the firm earned $0.84 earnings per share. The business’s revenue for the quarter was up 25.4% on a year-over-year basis. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. On average, equities analysts expect that Zscaler will post -0.03 EPS for the current fiscal year.

Insider Transactions at Zscaler

In other Zscaler news, CFO Kevin Rubin sold 1,682 shares of the stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $263,384.38. Following the completion of the transaction, the chief financial officer owned 46,479 shares in the company, valued at $7,278,146.61. This trade represents a 3.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Raj Judge sold 2,488 shares of the firm’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $389,595.92. Following the completion of the transaction, the executive vice president directly owned 67,906 shares of the company’s stock, valued at $10,633,400.54. The trade was a 3.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 12,130 shares of company stock valued at $1,892,487. 17.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Front Row Advisors LLC boosted its stake in Zscaler by 24.1% in the 1st quarter. Front Row Advisors LLC now owns 809 shares of the company’s stock worth $113,000 after purchasing an additional 157 shares during the period. Western Wealth Management LLC acquired a new position in shares of Zscaler during the 1st quarter worth about $33,000. Bank of America Corp DE boosted its stake in Zscaler by 44.3% during the 1st quarter. Bank of America Corp DE now owns 779,245 shares of the company’s stock worth $109,320,000 after purchasing an additional 239,326 shares during the last quarter. Edgestream Partners L.P. increased its holdings in shares of Zscaler by 95.9% in the first quarter. Edgestream Partners L.P. now owns 1,992 shares of the company’s stock valued at $279,000 after purchasing an additional 975 shares during the last quarter. Finally, Janus Henderson Group PLC increased its stake in shares of Zscaler by 47.0% in the 1st quarter. Janus Henderson Group PLC now owns 541,671 shares of the company’s stock worth $76,005,000 after acquiring an additional 173,268 shares during the last quarter. Institutional investors own 46.45% of the company’s stock.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reported fiscal Q3 revenue of $850.5 million and EPS of $1.08, both above estimates, while revenue rose 25% year over year and ARR also grew 25%, reinforcing the company’s strong core demand. Article: Zscaler Announces Strong Third-Quarter Fiscal 2026 Results
• Positive Sentiment: Management raised FY26 guidance and pointed to strength in AI security and record margins, which supports the long-term growth narrative for the cybersecurity platform. Article: ZS Q3 Earnings Call Flags Prudent Growth Outlook
• Positive Sentiment: Several analysts still view the stock favorably despite trimming targets, with Rosenblatt, Bernstein, Baird, and Needham maintaining bullish or buy-equivalent ratings, suggesting Wall Street still sees upside from current levels. Article: Analyst target updates
• Neutral Sentiment: New commentary on Zscaler’s AI security strategy and product expansion adds to the growth story, but also notes the stock may still need stronger execution to justify its valuation. Article: As Zscaler Doubles Down on AI Security, ZS Stock Still Needs More to Justify Its Steep Valuation
• Negative Sentiment: Despite the beat, Zscaler’s guidance disappointed traders: the company forecast fourth-quarter revenue slightly below estimates, and Reuters said the outlook reflected intensifying competition in cybersecurity and more cautious enterprise spending. Article: Zscaler sees downbeat quarterly revenue as competition heats up in cybersecurity market
• Negative Sentiment: Some recent analyst notes turned more cautious, including a Seeking Alpha downgrade citing slowing organic growth, weaker net-new ARR momentum, and competitive pressure from integrated security platforms. Article: Zscaler Q1: I Was Right (Rating Downgrade)

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.