Citizens Jmp Lowers Zscaler (NASDAQ:ZS) Price Target to $210.00

Key Points

• Citizens Jmp cut its price target on Zscaler from $290 to $210 while maintaining a "market outperform" rating, implying roughly a 54.69% upside from the current price.
• Zscaler beat fiscal quarter expectations with EPS of $1.01 (vs. $0.89) and revenue of $815.75M (vs. $798.92M), with revenue up 25.9% YoY and FY2026 EPS guidance of 3.99–4.02, though the company still posts a negative net margin.
• Multiple firms have trimmed targets recently, but analyst consensus remains a "Moderate Buy" with a consensus price target of $263.46.

Zscaler (NASDAQ:ZS - Get Free Report) had its price objective dropped by equities researchers at Citizens Jmp from $290.00 to $210.00 in a report issued on Friday,Benzinga reports. The brokerage presently has a "market outperform" rating on the stock. Citizens Jmp's price target would indicate a potential upside of 54.69% from the company's current price.

Several other research firms have also recently issued reports on ZS. Cantor Fitzgerald cut their price target on shares of Zscaler from $365.00 to $300.00 and set an "overweight" rating on the stock in a report on Tuesday, February 24th. Berenberg Bank decreased their target price on shares of Zscaler from $390.00 to $320.00 and set a "buy" rating for the company in a research report on Friday, February 27th. Robert W. Baird dropped their target price on shares of Zscaler from $360.00 to $300.00 and set an "outperform" rating on the stock in a research report on Monday, February 23rd. Barclays set a $220.00 price objective on shares of Zscaler in a research note on Thursday, February 19th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Zscaler in a research note on Wednesday, January 21st. Two investment analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $263.46.

Zscaler Stock Up 3.9%

Shares of ZS stock traded up $5.08 on Friday, hitting $135.76. The stock had a trading volume of 401,717 shares, compared to its average volume of 2,711,038. The firm has a market capitalization of $21.83 billion, a price-to-earnings ratio of -323.24 and a beta of 1.12. The stock's 50 day moving average is $143.64 and its 200-day moving average is $211.56. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.90 and a current ratio of 1.90. Zscaler has a 52-week low of $114.63 and a 52-week high of $336.99.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its quarterly earnings results on Thursday, February 26th. The company reported $1.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.89 by $0.12. The firm had revenue of $815.75 million for the quarter, compared to analysts' expectations of $798.92 million. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The firm's quarterly revenue was up 25.9% on a year-over-year basis. During the same period in the prior year, the company posted $0.78 earnings per share. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. As a group, research analysts expect that Zscaler will post -0.03 earnings per share for the current year.

Insider Buying and Selling

In other news, CFO Kevin Rubin sold 1,682 shares of the stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $263,384.38. Following the completion of the sale, the chief financial officer owned 46,479 shares of the company's stock, valued at approximately $7,278,146.61. This represents a 3.49% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Adam Geller sold 2,094 shares of the stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total value of $321,491.82. Following the completion of the sale, the insider directly owned 46,949 shares of the company's stock, valued at approximately $7,208,079.97. The trade was a 4.27% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 12,130 shares of company stock worth $1,892,487 in the last quarter. 17.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Zscaler

Several hedge funds have recently added to or reduced their stakes in the business. Integrated Wealth Concepts LLC lifted its holdings in shares of Zscaler by 19.9% during the first quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company's stock worth $285,000 after buying an additional 239 shares in the last quarter. NewEdge Advisors LLC boosted its holdings in Zscaler by 8.2% in the first quarter. NewEdge Advisors LLC now owns 4,899 shares of the company's stock valued at $972,000 after acquiring an additional 370 shares during the last quarter. Empowered Funds LLC boosted its holdings in Zscaler by 9.2% in the first quarter. Empowered Funds LLC now owns 2,811 shares of the company's stock valued at $558,000 after acquiring an additional 238 shares during the last quarter. Sivia Capital Partners LLC bought a new stake in Zscaler in the second quarter valued at approximately $252,000. Finally, Jump Financial LLC bought a new stake in Zscaler in the second quarter valued at approximately $3,019,000. Institutional investors and hedge funds own 46.45% of the company's stock.

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.

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