Zscaler, Inc. (NASDAQ:ZS) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Zscaler has a consensus analyst rating of “Moderate Buy”, with 33 buy ratings, 6 holds, and 1 sell among 40 covering firms. The average 1-year price target is about $216.
• Several analysts recently adjusted their views, including Guggenheim upgrading the stock to Buy and saying the selloff creates an attractive entry point with as much as 40% upside potential. Other firms, however, trimmed price targets, reflecting mixed sentiment.
• Zscaler’s latest quarterly results beat expectations, with $1.08 EPS on revenue of $850.48 million, and revenue rose 25.4% year over year. The company also gave Q4 and full-year FY2026 guidance above analyst estimates.

Shares of Zscaler, Inc. (NASDAQ:ZS - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the forty research firms that are presently covering the company, Marketbeat reports. One analyst has rated the stock with a sell recommendation, six have issued a hold recommendation and thirty-three have issued a buy recommendation on the company. The average 1-year target price among brokers that have covered the stock in the last year is $216.0263.

Several equities analysts recently commented on ZS shares. Berenberg Bank set a $200.00 target price on shares of Zscaler in a report on Thursday. Mizuho cut their price target on shares of Zscaler from $210.00 to $185.00 and set an "outperform" rating on the stock in a report on Wednesday, May 27th. Evercore set a $155.00 target price on shares of Zscaler and gave the stock an "in-line" rating in a research report on Wednesday, May 27th. Morgan Stanley lowered their price target on shares of Zscaler from $155.00 to $145.00 and set an "equal weight" rating for the company in a research report on Wednesday, May 27th. Finally, Citizens Jmp lowered their price target on shares of Zscaler from $290.00 to $210.00 and set a "market outperform" rating for the company in a research report on Friday, May 1st.

Insider Buying and Selling at Zscaler

In other Zscaler news, insider Robert Schlossman sold 2,263 shares of the firm's stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $354,363.17. Following the completion of the sale, the insider directly owned 72,390 shares in the company, valued at approximately $11,335,550.10. This trade represents a 3.03% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Adam Geller sold 2,094 shares of the firm's stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total transaction of $321,491.82. Following the sale, the insider owned 46,949 shares of the company's stock, valued at approximately $7,208,079.97. This represents a 4.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 12,130 shares of company stock worth $1,892,487 in the last 90 days. Insiders own 17.20% of the company's stock.

Institutional Trading of Zscaler

Large investors have recently made changes to their positions in the stock. Integrated Wealth Concepts LLC grew its position in Zscaler by 19.9% during the first quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company's stock valued at $285,000 after buying an additional 239 shares during the period. NewEdge Advisors LLC lifted its holdings in Zscaler by 8.2% during the first quarter. NewEdge Advisors LLC now owns 4,899 shares of the company's stock valued at $972,000 after purchasing an additional 370 shares in the last quarter. Empowered Funds LLC lifted its holdings in Zscaler by 9.2% during the first quarter. Empowered Funds LLC now owns 2,811 shares of the company's stock valued at $558,000 after purchasing an additional 238 shares in the last quarter. Sivia Capital Partners LLC purchased a new position in Zscaler during the second quarter valued at approximately $252,000. Finally, Jump Financial LLC purchased a new position in Zscaler during the second quarter valued at approximately $3,019,000. 46.45% of the stock is currently owned by institutional investors.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Guggenheim upgraded Zscaler to Buy from Neutral, saying the recent selloff has created an attractive entry point and suggesting as much as 40% upside from current levels. Zscaler jumps 10% after Guggenheim upgrade signals 40% upside
• Positive Sentiment: Wall Street commentary has turned more constructive on the stock, with reports highlighting investor confidence in Zscaler’s AI-related growth narrative after the recent pullback. Zscaler stock surges. Wall Street is buying the company’s 'trust me story' on AI.
• Positive Sentiment: Unusually large options activity showed traders buying far more call options than normal, signaling speculation on further upside.
• Neutral Sentiment: Zscaler remains a heavily watched stock today, with multiple articles noting increased investor attention and broad market discussion around the name. Zscaler, Inc. (ZS) Is a Trending Stock: Facts to Know Before Betting on It
• Negative Sentiment: A shareholder investigation announcement from Johnson Fistel may keep some pressure on sentiment by renewing concern over prior losses and possible securities-law claims. Zscaler, Inc. Shareholders Are Encouraged to Reach Out to Johnson Fistel for More Information about Potentially Recovering Their Losses
• Negative Sentiment: Recent coverage also reminded investors that the stock had previously fallen sharply after earnings despite beating estimates, underscoring lingering concerns about growth expectations. Why Zscaler Stock Plummeted This Week

Zscaler Stock Performance

Shares of ZS stock opened at $155.71 on Tuesday. The firm's 50 day moving average is $144.37 and its 200 day moving average is $187.40. The stock has a market capitalization of $25.18 billion, a P/E ratio of -324.39 and a beta of 0.96. Zscaler has a 12 month low of $114.63 and a 12 month high of $336.99. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, topping analysts' consensus estimates of $1.01 by $0.07. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The firm had revenue of $850.48 million for the quarter, compared to analyst estimates of $835.14 million. During the same quarter in the prior year, the firm earned $0.84 EPS. The business's revenue for the quarter was up 25.4% compared to the same quarter last year. 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, sell-side analysts anticipate that Zscaler will post -0.03 earnings per share for the current year.

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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