Zscaler (NASDAQ:ZS) Stock Price Up 2.6% – Still a Buy?

Zscaler, Inc. (NASDAQ:ZS)’s share price was up 2.6% on Tuesday . The company traded as high as $142.05 and last traded at $141.15. 2,588,449 shares were traded during mid-day trading, a decline of 30% from the average session volume of 3,672,294 shares. The stock had previously closed at $137.60.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on ZS. Barclays lowered their price target on shares of Zscaler from $180.00 to $170.00 and set an “overweight” rating for the company in a report on Wednesday, May 27th. Citizens Jmp reduced their price objective on Zscaler from $290.00 to $210.00 and set a “market outperform” rating on the stock in a research report on Friday, May 1st. Zacks Research raised Zscaler from a “strong sell” rating to a “hold” rating in a report on Wednesday, May 27th. Wedbush reiterated an “outperform” rating and issued a $220.00 target price on shares of Zscaler in a research report on Wednesday, June 10th. Finally, Citigroup reissued a “market outperform” rating on shares of Zscaler in a research note on Wednesday, May 27th. Thirty-four equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Zscaler has a consensus rating of “Moderate Buy” and an average price target of $213.97.

Zscaler Trading Up 0.6%

The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86. The firm’s fifty day simple moving average is $142.02 and its 200-day simple moving average is $166.26. The stock has a market cap of $23.82 billion, a P/E ratio of -306.93, a price-to-earnings-growth ratio of 88.25 and a beta of 0.96.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, beating analysts’ consensus estimates of $1.01 by $0.07. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The company had revenue of $850.48 million for the quarter, compared to analyst estimates of $835.14 million. During the same period in the prior year, the firm posted $0.84 EPS. The company’s quarterly revenue 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. Equities research analysts expect that Zscaler, Inc. will post 0.11 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Jagtar Singh Chaudhry sold 2,878 shares of the firm’s stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $363,865.54. Following the completion of the sale, the chief executive officer owned 343,038 shares of the company’s stock, valued at $43,370,294.34. This trade represents a 0.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, 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 Adam Geller sold 2,817 shares of the firm’s stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $122.60, for a total transaction of $345,364.20. Following the sale, the insider directly owned 42,314 shares of the company’s stock, valued at approximately $5,187,696.40. This trade represents a 6.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 15,644 shares of company stock valued at $1,960,287. Insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of ZS. Binnacle Investments Inc bought a new stake in Zscaler in the third quarter valued at $25,000. Picton Mahoney Asset Management bought a new position in shares of Zscaler during the 3rd quarter worth about $30,000. AlphaCentric Advisors LLC bought a new position in shares of Zscaler during the 4th quarter worth about $29,000. University of Texas Texas AM Investment Management Co. acquired a new stake in shares of Zscaler in the 4th quarter valued at about $30,000. Finally, Mcguire Capital Advisors Inc. acquired a new stake in shares of Zscaler in the 4th quarter valued at about $32,000. 46.45% of the stock is owned by institutional investors.

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.