BMO Capital Markets Issues Positive Forecast for Zscaler (NASDAQ:ZS) Stock Price

Key Points

• BMO Capital Markets has raised its target price for Zscaler (NASDAQ:ZS) from $295.00 to $315.00, suggesting a potential upside of 14.72% based on the stock's current price.
• Zscaler reported an earnings per share (EPS) of $0.89 for the last quarter, exceeding expectations, and revealed a 21.3% year-over-year increase in revenue.
• Institutional investors currently own 46.45% of Zscaler's stock, with recent increases from firms like China Universal Asset Management, which lifted its position by 46.0%.

Zscaler (NASDAQ:ZS - Get Free Report) had its target price raised by investment analysts at BMO Capital Markets from $295.00 to $315.00 in a report issued on Wednesday,Briefing.com Automated Import reports. The brokerage presently has an "outperform" rating on the stock. BMO Capital Markets' price target would indicate a potential upside of 14.72% from the company's current price.

A number of other analysts have also weighed in on ZS. BTIG Research reissued a "buy" rating on shares of Zscaler in a report on Thursday, July 10th. Oppenheimer boosted their target price on Zscaler from $290.00 to $345.00 and gave the stock an "outperform" rating in a research report on Friday, June 6th. Wall Street Zen cut Zscaler from a "buy" rating to a "hold" rating in a report on Saturday. Scotiabank boosted their price objective on Zscaler from $310.00 to $360.00 and gave the stock a "sector outperform" rating in a report on Friday, June 6th. Finally, Bank of America upped their target price on shares of Zscaler from $285.00 to $340.00 and gave the company a "buy" rating in a research report on Monday, June 9th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $300.63.

Zscaler Stock Performance

Shares of NASDAQ:ZS opened at $274.57 on Wednesday. The business has a fifty day moving average of $287.86 and a 200-day moving average of $249.96. Zscaler has a twelve month low of $153.45 and a twelve month high of $318.46. The firm has a market cap of $42.75 billion, a PE ratio of -1,056.04, a price-to-earnings-growth ratio of 259.58 and a beta of 1.05.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings results on Tuesday, September 2nd. The company reported $0.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.80 by $0.09. The business had revenue of $719.23 million for the quarter, compared to the consensus estimate of $707.15 million. Zscaler had a negative net margin of 1.52% and a negative return on equity of 0.59%. The firm's quarterly revenue was up 21.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.88 EPS. Zscaler has set its FY 2026 guidance at 3.640-3.680 EPS. Q1 2026 guidance at 0.850-0.860 EPS. On average, analysts anticipate that Zscaler will post -0.1 EPS for the current fiscal year.

Insider Buying and Selling at Zscaler

In other news, insider Syam Nair sold 4,064 shares of the firm's stock in a transaction dated Tuesday, June 17th. The stock was sold at an average price of $303.70, for a total transaction of $1,234,236.80. Following the sale, the insider owned 106,659 shares of the company's stock, valued at $32,392,338.30. This trade represents a 3.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Robert Schlossman sold 3,174 shares of Zscaler stock in a transaction dated Wednesday, June 18th. The shares were sold at an average price of $305.07, for a total value of $968,292.18. Following the transaction, the insider owned 88,970 shares in the company, valued at $27,142,077.90. This trade represents a 3.44% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 143,305 shares of company stock worth $43,199,936 in the last three months. 18.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. China Universal Asset Management Co. Ltd. lifted its position in Zscaler by 46.0% in the 2nd quarter. China Universal Asset Management Co. Ltd. now owns 5,535 shares of the company's stock valued at $1,738,000 after acquiring an additional 1,745 shares in the last quarter. Orion Porfolio Solutions LLC raised its stake in shares of Zscaler by 41.9% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 4,374 shares of the company's stock valued at $1,373,000 after purchasing an additional 1,292 shares during the period. Munro Partners acquired a new stake in shares of Zscaler in the 2nd quarter valued at about $3,221,000. Thrivent Financial for Lutherans bought a new stake in shares of Zscaler in the second quarter valued at about $232,000. Finally, MASTERINVEST Kapitalanlage GmbH acquired a new position in shares of Zscaler during the second quarter worth about $1,793,000. Institutional investors and hedge funds own 46.45% of the company's stock.

Zscaler Company Profile

Zscaler, Inc operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.

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