Zscaler, Inc. (NASDAQ:ZS) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Shares of Zscaler, Inc. (NASDAQ:ZS) have earned an average recommendation of “Moderate Buy” from the forty-one research firms that are presently covering the stock, Marketbeat.com reports. One investment analyst has rated the stock with a sell recommendation, six have assigned a hold recommendation and thirty-four have assigned a buy recommendation to the company. The average 12 month price objective among analysts that have issued ratings on the stock in the last year is $213.9744.

A number of research firms recently commented on ZS. Oppenheimer reduced their price target on Zscaler from $280.00 to $250.00 and set an “outperform” rating for the company in a report on Tuesday, March 10th. HC Wainwright upgraded Zscaler from a “buy” rating to a “buy” rating in a research note on Monday, May 18th. Wedbush reaffirmed an “outperform” rating and issued a $220.00 price objective on shares of Zscaler in a research report on Wednesday, June 10th. Wolfe Research reiterated an “outperform” rating and set a $150.00 target price on shares of Zscaler in a research note on Thursday, June 11th. Finally, JPMorgan Chase & Co. decreased their target price on Zscaler from $250.00 to $205.00 and set an “overweight” rating on the stock in a report on Wednesday, May 27th.

Zscaler Stock Performance

Shares of ZS stock opened at $147.33 on Friday. The company has a fifty day moving average price of $142.26 and a two-hundred day moving average price of $165.51. Zscaler has a one year low of $114.63 and a one year high of $336.99. The stock has a market cap of $23.82 billion, a P/E ratio of -306.93, a P/E/G ratio of 92.12 and a beta of 0.96. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.86 and a quick ratio of 1.86.

Zscaler (NASDAQ:ZS) last released its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, topping the consensus estimate of $1.01 by $0.07. The company had revenue of $850.48 million for the quarter, compared to analyst estimates of $835.14 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. Zscaler’s revenue for the quarter was up 25.4% compared to the same quarter last year. During the same period in the previous year, the business earned $0.84 EPS. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. As a group, equities analysts predict that Zscaler will post 0.11 EPS for the current year.

Insiders Place Their Bets

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,878 shares of Zscaler stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total transaction of $363,865.54. Following the completion of the transaction, the chief executive officer directly owned 343,038 shares of the company’s stock, valued at $43,370,294.34. The trade was a 0.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Robert Schlossman sold 3,146 shares of the company’s stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total transaction of $397,748.78. Following the completion of the transaction, the insider owned 69,366 shares in the company, valued at approximately $8,769,943.38. This represents a 4.34% decrease in their ownership of the stock. 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. Over the last 90 days, insiders sold 15,644 shares of company stock worth $1,960,287. Company insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Binnacle Investments Inc bought a new position in Zscaler in the 3rd quarter valued at about $25,000. AlphaCentric Advisors LLC bought a new stake in shares of Zscaler during the fourth quarter worth approximately $29,000. Picton Mahoney Asset Management bought a new stake in shares of Zscaler during the third quarter worth approximately $30,000. University of Texas Texas AM Investment Management Co. acquired a new position in shares of Zscaler in the fourth quarter valued at approximately $30,000. Finally, Mcguire Capital Advisors Inc. acquired a new position in shares of Zscaler in the fourth quarter valued at approximately $32,000. Institutional investors and hedge funds own 46.45% of the company’s stock.

Zscaler Company Profile

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.