Zscaler, Inc. (NASDAQ:ZS) Stock Has Consensus Price Target of $240.14 According to Brokerages

Key Points

• Analysts maintain a Moderate Buy consensus on Zscaler, with 37 buy, 8 hold and 1 sell rating among 46 firms. The average 12-month price target is $240.14, though several firms recently raised targets as high as $285.
• Zscaler’s latest quarterly results exceeded expectations, with earnings of $1.19 per share versus the $1.09 consensus and revenue of $898.19 million versus $876.96 million. Revenue increased 24.9% year over year, although the company reported a negative net margin.
• The stock opened at $247.82 and has a market capitalization of approximately $40.4 billion. Insiders sold roughly $11.3 million of shares during the latest quarter, while institutional investors own 46.45% of the company.

Shares of Zscaler, Inc. (NASDAQ:ZS - Get Free Report) have received a consensus rating of "Moderate Buy" from the forty-six research firms that are currently covering the company, MarketBeat.com reports. One analyst has rated the stock with a sell recommendation, eight have given a hold recommendation and thirty-seven have assigned a buy recommendation to the company. The average 12-month price objective among analysts that have covered the stock in the last year is $240.14.

A number of research firms have commented on ZS. KeyCorp raised their target price on shares of Zscaler from $185.00 to $210.00 and gave the company an "overweight" rating in a research report on Friday, August 21st. Stifel Nicolaus upped their price target on shares of Zscaler from $200.00 to $235.00 and gave the stock a "buy" rating in a research report on Wednesday, October 7th. Robert W. Baird increased their price objective on shares of Zscaler from $230.00 to $285.00 and gave the company an "outperform" rating in a research note on Wednesday, October 7th. Truist Financial reissued a "buy" rating and set a $250.00 price objective (up from $200.00) on shares of Zscaler in a report on Wednesday, October 7th. Finally, Guggenheim boosted their price objective on shares of Zscaler from $214.00 to $254.00 and gave the stock a "buy" rating in a research note on Wednesday, October 7th.

Zscaler Price Performance

Shares of ZS stock opened at $247.82 on Friday. The stock has a 50 day moving average price of $202.94 and a 200 day moving average price of $167.50. Zscaler has a 52-week low of $114.63 and a 52-week high of $336.99. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.70 and a current ratio of 1.70. The firm has a market capitalization of $40.41 billion, a P/E ratio of -635.44, a P/E/G ratio of 24.32 and a beta of 0.94.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its earnings results on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, topping analysts' consensus estimates of $1.09 by $0.10. The business had revenue of $898.19 million for the quarter, compared to the consensus estimate of $876.96 million. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The company's revenue for the quarter was up 24.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $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. As a group, sell-side analysts predict that Zscaler will post 0.70 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Robert Schlossman sold 5,394 shares of the business's stock in a transaction on Monday, September 21st. The stock was sold at an average price of $200.00, for a total value of $1,078,800.00. Following the completion of the transaction, the insider directly owned 61,525 shares of the company's stock, valued at approximately $12,305,000. The trade was a 8.06% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Adam Geller sold 1,042 shares of the company's stock in a transaction on Monday, October 12th. The stock was sold at an average price of $235.95, for a total value of $245,859.90. Following the sale, the insider owned 38,308 shares of the company's stock, valued at $9,038,772.60. This trade represents a 2.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 54,064 shares of company stock worth $11,316,078 over the last quarter. Insiders own 17.20% of the company's stock.

Institutional Trading of Zscaler

Institutional investors have recently modified their holdings of the company. BOCHK Asset Management Ltd boosted its position in shares of Zscaler by 48.7% in the 3rd quarter. BOCHK Asset Management Ltd now owns 34,798 shares of the company's stock worth $6,939,000 after purchasing an additional 11,400 shares in the last quarter. Bank Julius Baer & Co. Ltd Zurich grew its stake in Zscaler by 268.4% during the 3rd quarter. Bank Julius Baer & Co. Ltd Zurich now owns 19,040 shares of the company's stock worth $3,796,000 after buying an additional 13,872 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. grew its stake in Zscaler by 0.3% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 211,610 shares of the company's stock worth $42,199,000 after buying an additional 725 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new position in Zscaler during the 3rd quarter valued at about $14,367,000. Finally, ProShare Advisors LLC raised its stake in Zscaler by 16.4% in the third quarter. ProShare Advisors LLC now owns 6,980 shares of the company's stock valued at $1,392,000 after buying an additional 984 shares during the last quarter. 46.45% of the stock is currently owned by institutional investors.

About Zscaler

Zscaler, Inc is a cloud-based cybersecurity company that helps organizations secure access to applications, websites, data and other digital resources. Its platform is designed around a zero-trust security model, which verifies users and devices and enforces security policies before granting access, rather than relying primarily on a traditional corporate network perimeter.

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

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