Zscaler (NASDAQ:ZS) Price Target Raised to $220.00

Key Points

• Mizuho raised Zscaler’s price target to $220 from $210 and maintained an “outperform” rating, implying 2.5% upside from the previous close. Analysts overall rate the stock “Moderate Buy,” with an average target of $218.62.
• Zscaler’s latest quarterly results exceeded expectations, with adjusted EPS of $1.19 versus the $1.09 consensus and revenue of $898.19 million versus $876.96 million. Revenue increased 24.9% year over year.
• Institutional ownership stands at 46.45%, with major investors including BlackRock, First Trust Advisors, Geode Capital, Pictet Asset Management and Amundi adding or expanding positions; insiders, meanwhile, sold 28,656 shares worth $5.53 million during the last quarter.

Zscaler (NASDAQ:ZS - Get Free Report) had its target price upped by investment analysts at Mizuho from $210.00 to $220.00 in a report released on Friday, Benzinga reports. The brokerage presently has an "outperform" rating on the stock. Mizuho's price target would suggest a potential upside of 2.50% from the stock's previous close.

A number of other research firms have also commented on ZS. TD Cowen reaffirmed a "buy" rating and set a $200.00 price target on shares of Zscaler in a research report on Friday, September 4th. Royal Bank Of Canada upped their target price on Zscaler from $200.00 to $210.00 and gave the company an "outperform" rating in a report on Friday, September 4th. Berenberg Bank set a $200.00 target price on shares of Zscaler in a research report on Thursday, May 28th. Piper Sandler lifted their target price on shares of Zscaler from $160.00 to $175.00 and gave the company a "neutral" rating in a research note on Friday, September 4th. Finally, Morgan Stanley boosted their price target on shares of Zscaler from $145.00 to $165.00 and gave the company an "equal weight" rating in a research report on Friday, September 4th. Thirty-four research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $218.62.

Zscaler Stock Up 0.1%

Shares of Zscaler stock opened at $214.64 on Friday. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.70 and a current ratio of 1.70. Zscaler has a 52-week low of $114.63 and a 52-week high of $336.99. The stock has a market capitalization of $35.00 billion, a price-to-earnings ratio of -550.36, a P/E/G ratio of 23.95 and a beta of 0.95. The company's 50 day moving average price is $173.38 and its 200-day moving average price is $153.31.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, beating the consensus estimate of $1.09 by $0.10. The business had revenue of $898.19 million during the quarter, compared to analysts' expectations of $876.96 million. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The firm's revenue for the quarter was up 24.9% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.89 EPS. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. Equities research analysts forecast that Zscaler will post 0.64 EPS for the current year.

Insider Buying and Selling

In related news, insider Robert Schlossman sold 5,394 shares of the company's stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $200.00, for a total value of $1,078,800.00. Following the transaction, the insider owned 61,525 shares in the company, valued at $12,305,000. The trade was a 8.06% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jagtar Chaudhry sold 2,852 shares of the firm's stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $192.76, for a total transaction of $549,751.52. Following the sale, the chief executive officer owned 340,186 shares of the company's stock, valued at approximately $65,574,253.36. This represents a 0.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 28,656 shares of company stock worth $5,526,076 over the last quarter. 17.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Zscaler

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ZS. BlackRock Inc. bought a new stake in Zscaler in the 2nd quarter worth about $1,396,028,000. First Trust Advisors LP lifted its holdings in shares of Zscaler by 36.2% during the 1st quarter. First Trust Advisors LP now owns 3,518,678 shares of the company's stock valued at $493,635,000 after buying an additional 935,781 shares during the period. Geode Capital Management LLC boosted its stake in shares of Zscaler by 5.0% in the 4th quarter. Geode Capital Management LLC now owns 2,069,630 shares of the company's stock worth $464,783,000 after buying an additional 98,140 shares during the last quarter. Pictet Asset Management Holding SA boosted its stake in shares of Zscaler by 52.5% in the 1st quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company's stock worth $269,285,000 after buying an additional 661,413 shares during the last quarter. Finally, Amundi grew its holdings in shares of Zscaler by 12.8% in the second quarter. Amundi now owns 1,137,837 shares of the company's stock worth $160,606,000 after acquiring an additional 129,563 shares during the period. 46.45% of the stock is owned by institutional investors.

Zscaler Company Profile

Zscaler, Inc is a cloud-native cybersecurity company that provides security services designed to help organizations connect users, devices, applications and workloads securely over the internet. Its platform is built around a zero-trust security model, which verifies access based on identity, context and policy rather than relying primarily on a traditional corporate network perimeter.

The company's offerings include Zscaler Internet Access, which secures access to internet and software-as-a-service applications, and Zscaler Private Access, which provides secure, policy-based access to private applications without requiring conventional virtual private networks.

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