Zscaler, Inc. (NASDAQ:ZS) Receives Average Recommendation of “Moderate Buy” from Analysts

Zscaler, Inc. (NASDAQ:ZS) has been assigned a consensus rating of “Moderate Buy” from the forty-three analysts that are covering the company, MarketBeat.com reports. Two research analysts have rated the stock with a sell recommendation, six have issued a hold recommendation, thirty-three have issued a buy recommendation and two have assigned a strong buy recommendation to the company. The average 12 month price target among brokerages that have covered the stock in the last year is $267.1316.

A number of equities analysts have recently commented on the company. Needham & Company LLC lowered their price objective on Zscaler from $310.00 to $180.00 and set a “buy” rating for the company in a research report on Friday, February 27th. Scotiabank reduced their target price on shares of Zscaler from $334.00 to $320.00 and set a “sector outperform” rating on the stock in a report on Wednesday, November 26th. Barclays set a $220.00 price target on shares of Zscaler in a research note on Thursday, February 19th. The Goldman Sachs Group lowered their price target on shares of Zscaler from $290.00 to $257.00 and set a “neutral” rating for the company in a report on Monday, March 2nd. Finally, Stifel Nicolaus reduced their price objective on shares of Zscaler from $330.00 to $320.00 and set a “buy” rating on the stock in a report on Wednesday, November 26th.

Insider Activity

In related news, Director James A. Beer sold 653 shares of the stock in a transaction on Friday, January 2nd. The stock was sold at an average price of $226.72, for a total value of $148,048.16. Following the transaction, the director owned 3,485 shares of the company’s stock, valued at $790,119.20. This represents a 15.78% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Robert Schlossman sold 2,263 shares of the firm’s stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $354,363.17. Following the completion of the sale, the insider owned 72,390 shares in the company, valued at approximately $11,335,550.10. This represents a 3.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 9,027 shares of company stock valued at $1,459,333. Insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On Zscaler

Hedge funds and other institutional investors have recently made changes to their positions in the business. Binnacle Investments Inc purchased a new stake in Zscaler during the third quarter worth approximately $25,000. Tradewinds Capital Management LLC increased its stake in Zscaler by 145.7% in the third quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock valued at $26,000 after purchasing an additional 51 shares during the last quarter. Root Financial Partners LLC purchased a new position in Zscaler in the third quarter valued at approximately $26,000. McIlrath & Eck LLC acquired a new stake in Zscaler during the third quarter worth approximately $29,000. Finally, AlphaCentric Advisors LLC acquired a new stake in Zscaler during the fourth quarter worth approximately $29,000. Institutional investors and hedge funds own 46.45% of the company’s stock.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler and Bharti Airtel launched an AI & Cyber Threat Research Center to jointly research AI-enabled threats and defenses — a partnership that expands Zscaler’s enterprise reach in APAC and strengthens its positioning in AI-related security services. Zscaler and Bharti Airtel announce launch of AI & Cyber Threat Research Center
• Positive Sentiment: Zscaler expanded global data‑sovereignty capabilities on its Zero Trust Exchange (new control/logging planes, Canada deployment planned), which supports sales to regulated customers and can drive longer-term subscription revenue growth. Zscaler (ZS) Expands Global Data Sovereignty Capabilities on Zero Trust Exchange
• Positive Sentiment: Analyst commentary singled Zscaler out as a cybersecurity winner in the current AI-driven market shift (zero‑trust access control seen as increasingly valuable), which could support re-rating over time if AI adoption fuels security spend. Software Stocks Are Down—Expert Says These 3 Names Still Look Strong
• Negative Sentiment: EVP Raj Judge sold 2,488 shares at ~$156.59 (~$389.6k); his holdings fell ~3.53% (SEC Form 4). Insider sales by senior leaders can weigh on near-term sentiment even if amounts are small vs. their remaining stakes. SEC Form 4 – Raj Judge
• Negative Sentiment: Insider Robert Schlossman sold 2,263 shares at ~$156.59 (~$354.4k), reducing his stake ~3.03% (SEC Form 4). SEC Form 4 – Robert Schlossman
• Negative Sentiment: CFO Kevin Rubin sold 1,682 shares at ~$156.59 (~$263.4k), a ~3.49% reduction in his direct holdings (SEC Form 4). SEC Form 4 – Kevin Rubin
• Negative Sentiment: CEO Jagtar Singh Chaudhry sold 1,941 shares at ~$156.59 (~$303.9k), a 0.56% reduction in his position (SEC Form 4). CEO sales often draw investor attention despite small percentage changes. SEC Form 4 – Jagtar Singh Chaudhry

Zscaler Trading Down 0.0%

NASDAQ:ZS opened at $155.99 on Thursday. Zscaler has a 12-month low of $140.56 and a 12-month high of $336.99. The firm has a market cap of $25.08 billion, a PE ratio of -371.40 and a beta of 1.07. The company has a current ratio of 1.90, a quick ratio of 1.90 and a debt-to-equity ratio of 0.78. The stock has a fifty day moving average price of $180.47 and a 200 day moving average price of $244.35.

Zscaler (NASDAQ:ZS) last issued its quarterly earnings results on Thursday, February 26th. The company reported $1.01 earnings per share for the quarter, topping the consensus estimate of $0.89 by $0.12. The company had revenue of $815.75 million for the quarter, compared to the consensus estimate of $798.92 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.Zscaler’s revenue was up 25.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.78 EPS. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. Sell-side analysts anticipate that Zscaler will post -0.1 earnings per share for the current fiscal year.

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.