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

Shares of Zscaler, Inc. (NASDAQ:ZS) have been assigned a consensus recommendation of “Moderate Buy” from the forty research firms that are covering the firm, Marketbeat.com reports. One analyst has rated the stock with a sell rating, six have issued a hold rating and thirty-three have issued a buy rating on the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $216.0263.

ZS has been the topic of several recent research reports. Rosenblatt Securities dropped their target price on shares of Zscaler from $223.00 to $200.00 and set a “buy” rating on the stock in a report on Wednesday, May 27th. BMO Capital Markets reduced their price target on shares of Zscaler from $210.00 to $178.00 and set an “outperform” rating for the company in a research report on Wednesday, May 27th. UBS Group reduced their price target on shares of Zscaler from $260.00 to $225.00 and set a “buy” rating for the company in a research report on Wednesday, May 27th. Citigroup reaffirmed a “market outperform” rating on shares of Zscaler in a research note on Wednesday, May 27th. Finally, Sanford C. Bernstein dropped their price target on shares of Zscaler from $228.00 to $224.00 and set an “outperform” rating on the stock in a research note on Wednesday, May 27th.

Insider Activity at Zscaler

In other news, insider Adam Geller sold 2,094 shares of Zscaler stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total transaction of $321,491.82. Following the transaction, the insider owned 46,949 shares in the company, valued at $7,208,079.97. The trade was a 4.27% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director James A. Beer sold 177 shares of Zscaler stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total value of $27,174.81. Following the transaction, the director owned 4,384 shares in the company, valued at approximately $673,075.52. This represents a 3.88% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 12,130 shares of company stock worth $1,892,487 over the last 90 days. Corporate insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Westpac Banking Corp increased its stake in Zscaler by 919.0% during the third quarter. Westpac Banking Corp now owns 9,986 shares of the company’s stock worth $2,992,000 after purchasing an additional 9,006 shares during the period. Korea Investment CORP raised its stake in shares of Zscaler by 24.0% during the third quarter. Korea Investment CORP now owns 98,370 shares of the company’s stock worth $29,478,000 after purchasing an additional 19,026 shares during the last quarter. Qsemble Capital Management LP raised its stake in shares of Zscaler by 105.5% during the fourth quarter. Qsemble Capital Management LP now owns 15,773 shares of the company’s stock worth $3,548,000 after purchasing an additional 8,099 shares during the last quarter. Vinva Investment Management Ltd raised its position in Zscaler by 136.1% in the third quarter. Vinva Investment Management Ltd now owns 11,347 shares of the company’s stock worth $3,400,000 after acquiring an additional 6,541 shares in the last quarter. Finally, Oxbow Advisors LLC purchased a new position in Zscaler in the fourth quarter worth $2,939,000. 46.45% of the stock is currently owned by hedge funds and other institutional investors.

Zscaler Trading Up 11.4%

Shares of ZS opened at $155.71 on Tuesday. Zscaler has a twelve month low of $114.63 and a twelve month high of $336.99. The company has a market cap of $25.18 billion, a P/E ratio of -324.39 and a beta of 0.96. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72. The company’s fifty day simple moving average is $144.37 and its 200-day simple moving average is $187.40.

Zscaler (NASDAQ:ZS) last announced its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, beating the consensus estimate of $1.01 by $0.07. The business had revenue of $850.48 million for the quarter, compared to the consensus estimate of $835.14 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The business’s revenue for the quarter was up 25.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.84 earnings per share. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. As a group, analysts expect that Zscaler will post -0.03 EPS for the current year.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Guggenheim upgraded Zscaler to Buy from Neutral, saying the recent selloff has created an attractive entry point and suggesting as much as 40% upside from current levels. Zscaler jumps 10% after Guggenheim upgrade signals 40% upside
• Positive Sentiment: Wall Street commentary has turned more constructive on the stock, with reports highlighting investor confidence in Zscaler’s AI-related growth narrative after the recent pullback. Zscaler stock surges. Wall Street is buying the company’s ‘trust me story’ on AI.
• Positive Sentiment: Unusually large options activity showed traders buying far more call options than normal, signaling speculation on further upside.
• Neutral Sentiment: Zscaler remains a heavily watched stock today, with multiple articles noting increased investor attention and broad market discussion around the name. Zscaler, Inc. (ZS) Is a Trending Stock: Facts to Know Before Betting on It
• Negative Sentiment: A shareholder investigation announcement from Johnson Fistel may keep some pressure on sentiment by renewing concern over prior losses and possible securities-law claims. Zscaler, Inc. Shareholders Are Encouraged to Reach Out to Johnson Fistel for More Information about Potentially Recovering Their Losses
• Negative Sentiment: Recent coverage also reminded investors that the stock had previously fallen sharply after earnings despite beating estimates, underscoring lingering concerns about growth expectations. Why Zscaler Stock Plummeted This Week

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.