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

Zscaler, Inc. (NASDAQ:ZS) has been given an average rating of “Moderate Buy” by the forty-one ratings firms that are currently covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a sell recommendation, six have assigned a hold recommendation and thirty-four have issued a buy recommendation on the company. The average 1-year price target among analysts that have updated their coverage on the stock in the last year is $214.2051.

Several research analysts recently commented on the stock. KeyCorp lifted their target price on shares of Zscaler from $176.00 to $185.00 and gave the stock an “overweight” rating in a research note on Thursday, July 16th. Piper Sandler dropped their price target on shares of Zscaler from $185.00 to $160.00 and set a “neutral” rating for the company in a research report on Wednesday, May 27th. Rosenblatt Securities reissued a “buy” rating and issued a $200.00 price target on shares of Zscaler in a report on Wednesday, June 10th. Royal Bank Of Canada restated an “outperform” rating and issued a $200.00 price objective on shares of Zscaler in a research report on Wednesday, June 10th. Finally, Zacks Research raised shares of Zscaler from a “strong sell” rating to a “hold” rating in a research note on Wednesday, May 27th.

Insiders Place Their Bets

In related news, insider Adam Geller sold 2,817 shares of the business’s stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $122.60, for a total transaction of $345,364.20. Following the transaction, the insider owned 42,314 shares in the company, valued at $5,187,696.40. The trade was a 6.24% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 3,000 shares of the company’s stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $124.22, for a total value of $372,660.00. Following the transaction, the chief financial officer directly owned 41,901 shares of the company’s stock, valued at $5,204,942.22. The trade was a 6.68% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 15,766 shares of company stock valued at $1,978,587 over the last three months. Company insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On Zscaler

A number of hedge funds and other institutional investors have recently made changes to their positions in ZS. Integrated Wealth Concepts LLC boosted its holdings in Zscaler by 19.9% in the first quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company’s stock valued at $285,000 after acquiring an additional 239 shares in the last quarter. NewEdge Advisors LLC raised its holdings in Zscaler by 8.2% in the 1st quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock worth $972,000 after purchasing an additional 370 shares in the last quarter. Empowered Funds LLC lifted its position in shares of Zscaler by 9.2% in the 1st quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock worth $558,000 after purchasing an additional 238 shares during the period. Sivia Capital Partners LLC purchased a new stake in shares of Zscaler in the 2nd quarter worth about $252,000. Finally, Jump Financial LLC purchased a new stake in shares of Zscaler in the 2nd quarter worth about $3,019,000. Institutional investors own 46.45% of the company’s stock.

Zscaler Trading Down 0.7%

Shares of ZS stock opened at $148.72 on Wednesday. The business has a 50-day moving average of $143.92 and a 200 day moving average of $158.11. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.86 and a quick ratio of 1.86. Zscaler has a 1-year low of $114.63 and a 1-year high of $336.99. The stock has a market capitalization of $24.05 billion, a PE ratio of -309.83, a P/E/G ratio of 85.86 and a beta of 0.96.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, topping analysts’ consensus estimates of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The business had revenue of $850.48 million for the quarter, compared to analysts’ expectations of $835.14 million. During the same period in the previous year, the firm earned $0.84 EPS. The business’s quarterly revenue was up 25.4% on a year-over-year basis. 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, sell-side analysts anticipate that Zscaler will post 0.12 earnings per share for the current year.

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.