Zscaler, Inc. (NASDAQ:ZS) Stock Has Consensus Target Price of $219.78 According to Analysts

Key Points

• Analysts maintain a moderately bullish view: 34 of 42 analysts rate Zscaler a “buy,” with an average 12-month price target of $219.78 versus the stock’s $196.60 opening price.
• Several firms recently raised their targets, including RBC to $236, Baird to $230 and Barclays to $220, all maintaining positive ratings.
• Zscaler exceeded quarterly expectations, reporting $1.19 in earnings per share and $898.19 million in revenue, with revenue up 24.9% year over year. Institutional investors own 46.45% of the company, while recent insider sales were primarily attributed to tax withholding obligations.

Shares of Zscaler, Inc. (NASDAQ:ZS - Get Free Report) have been given an average recommendation of "Moderate Buy" by the forty-two analysts that are covering the stock, MarketBeat reports. Two investment analysts have rated the stock with a sell rating, six have given a hold rating and thirty-four have given a buy rating to the company. The average 1 year price target among brokers that have updated their coverage on the stock in the last year is $219.78.

ZS has been the subject of several recent analyst reports. Barclays lifted their target price on shares of Zscaler from $200.00 to $220.00 and gave the stock an "overweight" rating in a report on Tuesday, September 29th. Royal Bank Of Canada increased their price target on shares of Zscaler from $210.00 to $236.00 and gave the company an "outperform" rating in a report on Friday, September 25th. Rosenblatt Securities reissued a "buy" rating and set a $200.00 price target on shares of Zscaler in a research report on Friday, September 4th. Robert W. Baird boosted their price objective on shares of Zscaler from $220.00 to $230.00 and gave the stock an "outperform" rating in a report on Friday, September 4th. Finally, TD Cowen reaffirmed a "buy" rating and issued a $200.00 price objective on shares of Zscaler in a research report on Friday, September 4th.

Insiders Place Their Bets

In related news, CEO Jagtar Chaudhry sold 2,852 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 $549,751.52. Following the completion of the sale, the chief executive officer directly owned 340,186 shares in the company, valued at approximately $65,574,253.36. This trade represents a 0.83% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Kevin Rubin sold 5,957 shares of the company's stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $192.76, for a total transaction of $1,148,271.32. Following the transaction, the chief financial officer owned 43,287 shares in the company, valued at $8,344,002.12. This represents a 12.10% decrease in their position. 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. Insiders have sold 29,053 shares of company stock worth $5,610,165 over the last three months. Company insiders own 17.20% of the company's stock.

Institutional Trading of Zscaler

A number of large investors have recently made changes to their positions in the stock. BlackRock Inc. purchased a new stake in Zscaler during the 2nd quarter valued at $1,396,028,000. First Trust Advisors LP boosted its stake in shares of Zscaler by 36.2% in the 1st quarter. First Trust Advisors LP now owns 3,518,678 shares of the company's stock worth $493,635,000 after buying an additional 935,781 shares during the last quarter. Pictet Asset Management Holding SA grew its holdings in shares of Zscaler by 52.5% in the first quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company's stock worth $269,285,000 after acquiring an additional 661,413 shares during the period. Amundi grew its holdings in shares of Zscaler by 12.8% in the second quarter. Amundi now owns 1,137,837 shares of the company's stock worth $160,606,000 after acquiring an additional 129,563 shares during the period. Finally, Wellington Management Group LLP increased its position in Zscaler by 23.5% during the second quarter. Wellington Management Group LLP now owns 1,103,212 shares of the company's stock valued at $155,718,000 after acquiring an additional 209,711 shares during the last quarter. 46.45% of the stock is currently owned by institutional investors.

Zscaler Stock Performance

Zscaler stock opened at $196.60 on Monday. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 0.65. The business's fifty day simple moving average is $179.64 and its two-hundred day simple moving average is $155.10. Zscaler has a 12 month low of $114.63 and a 12 month high of $336.99. The company has a market capitalization of $32.06 billion, a price-to-earnings ratio of -504.10, a price-to-earnings-growth ratio of 20.49 and a beta of 0.94.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, beating the consensus estimate of $1.09 by $0.10. The firm had revenue of $898.19 million during the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same period last year, the company earned $0.89 earnings per share. 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, equities analysts predict that Zscaler will post 0.7 earnings per share for the current fiscal year.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.