Citigroup Issues Pessimistic Forecast for Zscaler (NASDAQ:ZS) Stock Price

Zscaler (NASDAQ:ZS) had its price target dropped by equities research analysts at Citigroup from $365.00 to $350.00 in a research note issued to investors on Monday,Benzinga reports. The firm presently has a “buy” rating on the stock. Citigroup’s price target points to a potential upside of 44.82% from the stock’s previous close.

A number of other analysts also recently issued reports on ZS. Citizens Jmp reiterated a “market outperform” rating and issued a $355.00 price objective on shares of Zscaler in a report on Wednesday, November 26th. UBS Group decreased their target price on shares of Zscaler from $350.00 to $340.00 and set a “buy” rating for the company in a research report on Wednesday, November 26th. Stifel Nicolaus cut their price target on shares of Zscaler from $330.00 to $320.00 and set a “buy” rating on the stock in a research report on Wednesday, November 26th. Bank of America reduced their price objective on shares of Zscaler from $355.00 to $335.00 and set a “buy” rating for the company in a research note on Wednesday, November 26th. Finally, Guggenheim reaffirmed a “neutral” rating on shares of Zscaler in a research report on Wednesday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Zscaler currently has a consensus rating of “Moderate Buy” and an average target price of $321.87.

Zscaler Price Performance

ZS stock opened at $241.68 on Monday. The stock has a 50-day moving average price of $301.71 and a two-hundred day moving average price of $291.57. Zscaler has a 1 year low of $164.78 and a 1 year high of $336.99. The stock has a market cap of $38.54 billion, a PE ratio of -929.50 and a beta of 1.07. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 0.86.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data 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. The company had revenue of $788.11 million during the quarter, compared to analysts’ expectations of $773.86 million. Zscaler had a negative return on equity of 0.12% and a negative net margin of 1.45%.Zscaler’s revenue for the quarter was up 25.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.77 earnings per share. Zscaler has set its FY 2026 guidance at 3.780-3.820 EPS and its Q2 2026 guidance at 0.890-0.900 EPS. Equities analysts forecast that Zscaler will post -0.1 EPS for the current fiscal year.

Insider Activity

In other news, insider Robert Schlossman sold 7,006 shares of the company’s stock in a transaction on Thursday, October 2nd. The shares were sold at an average price of $305.57, for a total value of $2,140,823.42. Following the completion of the sale, the insider owned 76,132 shares in the company, valued at $23,263,655.24. This represents a 8.43% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Raj Judge sold 4,524 shares of the stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $280.70, for a total transaction of $1,269,886.80. Following the completion of the sale, the executive vice president owned 73,832 shares of the company’s stock, valued at approximately $20,724,642.40. This represents a 5.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 43,084 shares of company stock valued at $12,446,825 over the last quarter. 17.20% of the stock is owned by insiders.

Institutional Trading of Zscaler

A number of large investors have recently added to or reduced their stakes in the stock. Brookstone Capital Management bought a new position in shares of Zscaler in the second quarter worth approximately $283,000. Ensign Peak Advisors Inc grew its stake in Zscaler by 9.9% in the 2nd quarter. Ensign Peak Advisors Inc now owns 395,391 shares of the company’s stock worth $124,129,000 after buying an additional 35,770 shares in the last quarter. GGM Financials LLC bought a new position in shares of Zscaler in the 2nd quarter worth $5,811,000. Parisi Gray Wealth Management bought a new position in shares of Zscaler in the 2nd quarter worth $801,000. Finally, Schroder Investment Management Group raised its position in shares of Zscaler by 11.5% during the 2nd quarter. Schroder Investment Management Group now owns 164,061 shares of the company’s stock valued at $51,505,000 after buying an additional 16,868 shares in the last quarter. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Zscaler Company Profile

Zscaler, Inc operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.