Zscaler (NASDAQ:ZS) Stock Price Up 7.8% – Still a Buy?

Zscaler, Inc. (NASDAQ:ZS) shot up 7.8% during trading on Tuesday . The stock traded as high as $150.52 and last traded at $152.8560. 867,325 shares changed hands during trading, a decline of 76% from the average daily volume of 3,598,740 shares. The stock had previously closed at $141.82.

Analysts Set New Price Targets

ZS has been the subject of a number of analyst reports. Citizens Jmp dropped their price objective on shares of Zscaler from $290.00 to $210.00 and set a “market outperform” rating for the company in a report on Friday, May 1st. Deutsche Bank Aktiengesellschaft reduced their target price on shares of Zscaler from $185.00 to $175.00 and set a “buy” rating on the stock in a research note on Wednesday, May 27th. Stifel Nicolaus decreased their target price on shares of Zscaler from $180.00 to $175.00 and set a “buy” rating on the stock in a report on Wednesday, May 27th. Evercore set a $155.00 price target on shares of Zscaler and gave the company an “in-line” rating in a research note on Wednesday, May 27th. Finally, Needham & Company LLC restated a “buy” rating and set a $180.00 price target on shares of Zscaler in a report on Wednesday, June 10th. Thirty-four equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $213.97.

Zscaler Stock Performance

The firm has a 50-day moving average price of $143.62 and a 200 day moving average price of $161.44. The firm has a market capitalization of $24.92 billion, a PE ratio of -321.86, a price-to-earnings-growth ratio of 79.81 and a beta of 0.96. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The firm had revenue of $850.48 million for the quarter, compared to the consensus estimate of $835.14 million. During the same quarter in the previous year, the business earned $0.84 EPS. The company’s quarterly revenue was up 25.4% compared to the same quarter last year. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Research analysts expect that Zscaler, Inc. will post 0.12 earnings per share for the current year.

Insider Transactions at Zscaler

In other news, insider Adam Geller sold 2,817 shares of the firm’s stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $122.60, for a total value of $345,364.20. Following the completion of the transaction, the insider 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 3,000 shares of the company’s stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $124.22, for a total transaction of $372,660.00. Following the sale, the chief financial officer directly owned 41,901 shares in the company, valued at approximately $5,204,942.22. The trade was a 6.68% decrease in their ownership of the stock. 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 90 days, insiders sold 15,766 shares of company stock valued at $1,978,587. 17.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Zscaler

Several institutional investors have recently modified their holdings of the business. Kentucky Retirement Systems Insurance Trust Fund increased its position in shares of Zscaler by 1.4% during the third quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 2,569 shares of the company’s stock worth $770,000 after acquiring an additional 36 shares during the period. Parallel Advisors LLC grew its stake in Zscaler by 10.9% during the 3rd quarter. Parallel Advisors LLC now owns 397 shares of the company’s stock worth $119,000 after purchasing an additional 39 shares in the last quarter. Smartleaf Asset Management LLC grew its stake in Zscaler by 7.5% during the 2nd quarter. Smartleaf Asset Management LLC now owns 648 shares of the company’s stock worth $204,000 after purchasing an additional 45 shares in the last quarter. Yousif Capital Management LLC increased its holdings in Zscaler by 3.8% during the 4th quarter. Yousif Capital Management LLC now owns 1,326 shares of the company’s stock worth $274,000 after purchasing an additional 48 shares during the period. Finally, Larson Financial Group LLC increased its holdings in Zscaler by 2.6% during the 3rd quarter. Larson Financial Group LLC now owns 2,040 shares of the company’s stock worth $611,000 after purchasing an additional 52 shares during the period. 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.