Zscaler (NASDAQ:ZS) Price Target Raised to $260.00

Key Points

• Citigroup raised Zscaler’s price target to $260 from $245 and maintained a “buy” rating, implying approximately 19.5% upside. Other analysts also increased their targets, with the consensus rating at “Moderate Buy” and the average target at $239.78.
• Zscaler shares fell 1.5% to $217.57 during Thursday trading, while the company reported quarterly revenue of $898.19 million and adjusted earnings of $1.19 per share, exceeding analyst expectations.
• Insiders sold shares worth about $11.3 million over the past 90 days, primarily to cover tax obligations from equity awards, while institutional investors own approximately 46.45% of Zscaler’s stock.

Zscaler (NASDAQ:ZS - Get Free Report) had its target price increased by analysts at Citigroup from $245.00 to $260.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The firm presently has a "buy" rating on the stock. Citigroup's price target indicates a potential upside of 19.50% from the company's current price.

ZS has been the subject of several other research reports. Stephens increased their target price on shares of Zscaler from $225.00 to $265.00 and gave the stock an "overweight" rating in a research note on Wednesday, October 7th. Barclays boosted their price target on shares of Zscaler from $220.00 to $225.00 and gave the company an "overweight" rating in a research note on Wednesday, October 7th. TD Cowen boosted their price target on shares of Zscaler from $200.00 to $230.00 and gave the company a "buy" rating in a research note on Wednesday, October 7th. BNP Paribas Exane restated an "outperform" rating and issued a $250.00 price objective (up from $230.00) on shares of Zscaler in a report on Wednesday, October 7th. Finally, Robert W. Baird increased their price objective on shares of Zscaler from $230.00 to $285.00 and gave the stock an "outperform" rating in a research report on Wednesday, October 7th. Thirty-five research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $239.78.

Zscaler Trading Down 1.5%

Shares of Zscaler stock traded down $3.21 during trading hours on Thursday, hitting $217.57. The company's stock had a trading volume of 1,332,085 shares, compared to its average volume of 3,354,314. Zscaler has a twelve month low of $114.63 and a twelve month high of $336.99. The firm has a fifty day moving average of $190.07 and a 200-day moving average of $159.06. The stock has a market cap of $35.48 billion, a price-to-earnings ratio of -557.74, a P/E/G ratio of 21.97 and a beta of 0.94. 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 (NASDAQ:ZS - Get Free Report) last released its quarterly earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, topping analysts' consensus estimates 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 positive return on equity of 1.23% and a negative net margin of 1.88%. The company's revenue was up 24.9% compared to the same quarter last year. During the same period in the prior year, the business 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. Research analysts forecast that Zscaler will post 0.69 EPS for the current year.

Insider Transactions at Zscaler

In other Zscaler news, CFO Kevin Rubin sold 5,957 shares of Zscaler stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $192.76, for a total value of $1,148,271.32. Following the completion of the transaction, the chief financial officer directly owned 43,287 shares of the company's stock, valued at $8,344,002.12. The trade was a 12.10% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Jagtar Chaudhry sold 2,852 shares of the business's stock in a transaction dated Wednesday, September 16th. The stock was 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 in the company, valued at $65,574,253.36. This trade represents a 0.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 54,053 shares of company stock valued at $11,256,876. 17.20% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Assenagon Asset Management S.A. lifted its stake in Zscaler by 1.4% in the third quarter. Assenagon Asset Management S.A. now owns 196,000 shares of the company's stock valued at $39,086,000 after buying an additional 2,703 shares during the last quarter. Curated Wealth Partners LLC acquired a new stake in shares of Zscaler in the third quarter valued at approximately $643,000. Mainsail Asset Management LLC acquired a new stake in shares of Zscaler in the third quarter valued at approximately $249,000. Fortitude Family Office LLC grew its position in shares of Zscaler by 2,466.7% during the third quarter. Fortitude Family Office LLC now owns 154 shares of the company's stock worth $31,000 after acquiring an additional 148 shares during the last quarter. Finally, Triumph Capital Management grew its position in shares of Zscaler by 6.3% during the third quarter. Triumph Capital Management now owns 923 shares of the company's stock worth $184,000 after acquiring an additional 55 shares during the last quarter. Institutional investors and hedge funds own 46.45% of the company's stock.

About Zscaler

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

The company's offerings include Zscaler Internet Access, which helps secure internet and software-as-a-service access, and Zscaler Private Access, which provides controlled access to private applications without extending an organization's network to remote users.

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