Zscaler, Inc. (NASDAQ:ZS) Given Consensus Rating of “Moderate Buy” by Brokerages

Zscaler, Inc. (NASDAQ:ZS) has been assigned a consensus rating of “Moderate Buy” from the forty-three analysts that are covering the stock, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating, thirty-three have issued a buy rating and one has issued a strong buy rating on the company. The average 12 month price target among brokers that have covered the stock in the last year is $317.6316.

ZS has been the topic of several analyst reports. Barclays lifted their price target on shares of Zscaler from $320.00 to $350.00 and gave the company an “overweight” rating in a research report on Wednesday, November 12th. Cantor Fitzgerald restated an “overweight” rating on shares of Zscaler in a research report on Wednesday, November 26th. Capital One Financial set a $320.00 price target on Zscaler and gave the company an “overweight” rating in a research note on Wednesday, November 26th. KeyCorp lowered their price target on Zscaler from $350.00 to $300.00 and set an “overweight” rating for the company in a report on Monday, January 12th. Finally, Piper Sandler reduced their price objective on shares of Zscaler from $280.00 to $260.00 and set a “neutral” rating on the stock in a report on Monday, January 5th.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler launched the Zscaler AI Security Suite — a bundled set of capabilities for AI asset inventory, secure access, and runtime protection; integrations with OpenAI, Microsoft, AWS and alignment with NIST/EU AI rules position ZS as a go‑to vendor for enterprises accelerating AI. Zscaler Unveils New Innovations to Secure Enterprise AI Adoption
• Positive Sentiment: Zscaler’s ThreatLabz 2026 AI Security Report found rapid AI adoption and widespread vulnerabilities (median time to first critical failure ~16 minutes), which creates a clear market need for Zero Trust AI controls — a potential demand catalyst for ZS security products. Zscaler 2026 AI Threat Report: 91% Year-over-Year Surge in AI Activity Creates Growing Oversight Gap for Global Enterprises
• Neutral Sentiment: Multiple outlets flagged ZS as a top mover today and highlighted the new AI announcements as the proximate cause of buying interest. Media coverage is reinforcing the product narrative to traders. Why Zscaler (ZS) Stock Is Up Today
• Neutral Sentiment: Analyst attention remains supportive: recent Zacks/other coverage and numerous buy/overweight ratings and price targets well above current levels provide a favorable analyst backdrop; earlier quarterly results showed strong revenue growth and an EPS beat, which underpins confidence. Zscaler (ZS) Outperforms Broader Market: What You Need to Know
• Negative Sentiment: Quiver/coverage flags heavy insider selling activity in recent months and highlights the report’s disclosure/forward‑looking caveats — potential short‑term overhang if investors view insider sales or integration risks negatively. Zscaler Reports Critical AI Security Vulnerabilities Amid Rapid Adoption Growth

Zscaler Trading Up 2.4%

Shares of ZS stock opened at $219.67 on Wednesday. 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 has a twelve month low of $164.78 and a twelve month high of $336.99. The company’s 50-day moving average price is $233.80 and its 200-day moving average price is $272.67. The stock has a market cap of $35.03 billion, a price-to-earnings ratio of -844.85, a PEG ratio of 3,526.27 and a beta of 1.02.

Zscaler (NASDAQ:ZS) last released its quarterly earnings data on Tuesday, November 25th. The company reported $0.96 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.85 by $0.11. The firm had revenue of $788.11 million during the quarter, compared to analysts’ expectations of $773.86 million. Zscaler had a negative net margin of 1.45% and a negative return on equity of 0.12%. Zscaler’s revenue was up 25.5% compared to the same quarter last year. During the same period last year, the business 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. As a group, equities analysts predict that Zscaler will post -0.1 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director James A. Beer sold 653 shares of Zscaler stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $226.72, for a total value of $148,048.16. Following the completion of the sale, the director owned 3,485 shares in the company, valued at approximately $790,119.20. This trade represents a 15.78% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Robert Schlossman sold 2,349 shares of the business’s stock in a transaction that occurred on Wednesday, December 17th. The shares were sold at an average price of $232.79, for a total value of $546,823.71. Following the completion of the sale, the insider directly owned 74,653 shares in the company, valued at approximately $17,378,471.87. The trade was a 3.05% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 19,350 shares of company stock worth $4,471,509. Insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On Zscaler

Institutional investors have recently modified their holdings of the company. Binnacle Investments Inc acquired a new position in Zscaler during the 3rd quarter worth about $25,000. Tradewinds Capital Management LLC grew its position in Zscaler by 145.7% in the 3rd quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock valued at $26,000 after acquiring an additional 51 shares in the last quarter. Root Financial Partners LLC purchased a new stake in Zscaler during the third quarter worth about $26,000. McIlrath & Eck LLC acquired a new stake in shares of Zscaler during the third quarter worth about $29,000. Finally, Quaker Wealth Management LLC lifted its position in shares of Zscaler by 200.0% during the second quarter. Quaker Wealth Management LLC now owns 97 shares of the company’s stock worth $30,000 after purchasing an additional 194 shares in the last quarter. 46.45% of the stock is owned by institutional investors and hedge funds.

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.