Truist Financial Has Lowered Expectations for Zscaler (NASDAQ:ZS) Stock Price

Zscaler (NASDAQ:ZS) had its price objective decreased by analysts at Truist Financial from $350.00 to $250.00 in a report released on Tuesday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. Truist Financial’s price target would suggest a potential upside of 45.24% from the stock’s current price.

Several other equities research analysts also recently weighed in on ZS. Capital One Financial set a $320.00 price target on Zscaler and gave the stock an “overweight” rating in a report on Wednesday, November 26th. Cantor Fitzgerald restated an “overweight” rating on shares of Zscaler in a research note on Monday, February 9th. Bank of America decreased their price target 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. Piper Sandler dropped their price objective on shares of Zscaler from $280.00 to $260.00 and set a “neutral” rating on the stock in a research report on Monday, January 5th. Finally, Citizens Jmp reaffirmed a “market outperform” rating and set a $355.00 price objective on shares of Zscaler in a research report on Wednesday, November 26th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Zscaler presently has a consensus rating of “Moderate Buy” and an average price target of $310.65.

Zscaler Trading Down 0.3%

NASDAQ ZS opened at $172.13 on Tuesday. The firm’s 50-day moving average is $209.72 and its two-hundred day moving average is $261.03. Zscaler has a 12 month low of $162.87 and a 12 month high of $336.99. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.82 and a quick ratio of 1.82. The stock has a market capitalization of $27.45 billion, a P/E ratio of -662.01, a PEG ratio of 351.83 and a beta of 1.02.

Zscaler (NASDAQ:ZS) last released its quarterly earnings results on Tuesday, November 25th. The company reported $0.96 EPS for the quarter, topping analysts’ consensus estimates of $0.85 by $0.11. Zscaler had a negative return on equity of 0.12% and a negative net margin of 1.45%.The company had revenue of $788.11 million for the quarter, compared to analysts’ expectations of $773.86 million. During the same period in the prior year, the firm earned $0.77 earnings per share. The firm’s revenue was up 25.5% compared to the same quarter last year. Zscaler has set its FY 2026 guidance at 3.780-3.820 EPS and its Q2 2026 guidance at 0.890-0.900 EPS. On average, sell-side analysts anticipate that Zscaler will post -0.1 earnings per share for the current year.

Insider Activity

In related news, EVP Raj Judge sold 3,438 shares of the firm’s stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total value of $793,559.16. Following the transaction, the executive vice president owned 70,394 shares in the company, valued at approximately $16,248,343.08. This trade represents a 4.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Robert Schlossman sold 2,349 shares of Zscaler stock in a transaction that occurred on Wednesday, December 17th. The shares were sold at an average price of $232.79, for a total transaction of $546,823.71. Following the transaction, the insider directly owned 74,653 shares in the company, valued at approximately $17,378,471.87. This trade represents a 3.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 19,350 shares of company stock valued at $4,471,509 in the last 90 days. 17.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Zscaler

A number of institutional investors and hedge funds have recently bought and sold shares of ZS. Strive Financial Group LLC acquired a new stake in shares of Zscaler during the fourth quarter worth approximately $39,000. Mackenzie Financial Corp grew its holdings in Zscaler by 30.3% during the 4th quarter. Mackenzie Financial Corp now owns 50,048 shares of the company’s stock worth $11,360,000 after acquiring an additional 11,632 shares in the last quarter. Empowered Funds LLC increased its position in shares of Zscaler by 41.7% in the 4th quarter. Empowered Funds LLC now owns 37,113 shares of the company’s stock worth $8,347,000 after purchasing an additional 10,918 shares during the last quarter. Utah Retirement Systems raised its stake in shares of Zscaler by 0.9% in the 4th quarter. Utah Retirement Systems now owns 16,251 shares of the company’s stock valued at $3,655,000 after purchasing an additional 138 shares in the last quarter. Finally, Twinbeech Capital LP bought a new position in shares of Zscaler during the fourth quarter worth about $345,000. Hedge funds and other institutional investors 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.