Cantor Fitzgerald Reaffirms Overweight Rating for Zscaler (NASDAQ:ZS)

Key Points

• Cantor Fitzgerald reaffirmed its Overweight rating on Zscaler and maintained a $225 price target, implying approximately 21% upside from the reported $185.70 share price.
• Analyst sentiment remains broadly positive, with 34 Buy ratings, six Holds and one Sell; MarketBeat reports a consensus “Moderate Buy” rating and an average price target of $213.44.
• Zscaler exceeded quarterly expectations, reporting $1.08 in EPS versus a $1.01 estimate and $850.48 million in revenue, up 25.4% year over year. Insiders sold 16,269 shares worth about $2.05 million over the past 90 days.

Zscaler (NASDAQ:ZS - Get Free Report)'s stock had its "overweight" rating restated by stock analysts at Cantor Fitzgerald in a research note issued on Wednesday,Benzinga reports. They currently have a $225.00 price target on the stock. Cantor Fitzgerald's target price would suggest a potential upside of 21.16% from the company's current price.

Several other equities analysts have also commented on the stock. Deutsche Bank Aktiengesellschaft reduced their target price on shares of Zscaler from $185.00 to $175.00 and set a "buy" rating on the stock in a report on Wednesday, May 27th. FBN Securities restated an "outperform" rating and set a $175.00 price target on shares of Zscaler in a research report on Wednesday, May 27th. UBS Group reduced their price objective on Zscaler from $260.00 to $225.00 and set a "buy" rating on the stock in a research note on Wednesday, May 27th. Stephens reiterated an "overweight" rating and issued a $200.00 price objective on shares of Zscaler in a report on Friday, June 12th. Finally, Needham & Company LLC reissued a "buy" rating and issued a $180.00 target price on shares of Zscaler in a research note on Wednesday, June 10th. Thirty-four equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $213.44.

Zscaler Price Performance

ZS stock opened at $185.70 on Wednesday. The firm has a 50 day simple moving average of $147.88 and a two-hundred day simple moving average of $150.61. The stock has a market cap of $30.03 billion, a PE ratio of -386.87, a P/E/G ratio of 66.08 and a beta of 0.94. Zscaler has a one year low of $114.63 and a one year high of $336.99. 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 (NASDAQ:ZS - Get Free Report) last issued its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.01 by $0.07. The business had revenue of $850.48 million during the quarter, compared to analyst estimates of $835.14 million. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.Zscaler'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 earned $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. On average, analysts predict that Zscaler will post 0.12 EPS for the current fiscal year.

Insider Activity at Zscaler

In other Zscaler news, CFO Kevin Rubin sold 3,000 shares of the company's stock in a transaction 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 completion of the transaction, the chief financial officer directly owned 41,901 shares in the company, valued at approximately $5,204,942.22. This represents a 6.68% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Adam Geller sold 2,817 shares of the firm'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 completion of the sale, the insider directly owned 42,314 shares of the company's stock, valued at approximately $5,187,696.40. This represents a 6.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 16,269 shares of company stock valued at $2,052,589 in the last 90 days. 17.20% of the stock is owned by company insiders.

Institutional Trading of Zscaler

Institutional investors and hedge funds have recently bought and sold shares of the stock. BlackRock Inc. purchased a new stake in Zscaler in the second quarter worth $1,396,028,000. First Trust Advisors LP lifted its position in Zscaler by 36.2% during the first 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. Price T Rowe Associates Inc. MD lifted its position in Zscaler by 43.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company's stock valued at $578,576,000 after buying an additional 777,414 shares during the period. AQR Capital Management LLC lifted its position in Zscaler by 61.8% during the third quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company's stock valued at $576,083,000 after buying an additional 741,756 shares during the period. Finally, Connor Clark & Lunn Investment Management Ltd. bought a new stake in shares of Zscaler during the 2nd quarter valued at $102,271,000. 46.45% of the stock is currently owned by hedge funds and other institutional investors.

About Zscaler

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.

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