Zscaler, Inc. (NASDAQ:ZS) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Zscaler has received a consensus rating of "Moderate Buy" from thirty-eight brokerages, with a twelve-month price target averaging $307.00.
• CEO Jagtar Singh Chaudhry and EVP Raj Judge recently sold shares of Zscaler, indicating a decrease in their ownership stakes by 0.81% and 5.77%, respectively.
• Zscaler reported quarterly earnings that surpassed expectations, with a revenue of $719.23 million, marking a 21.3% increase year-over-year.

Shares of Zscaler, Inc. (NASDAQ:ZS - Get Free Report) have earned a consensus rating of "Moderate Buy" from the thirty-eight brokerages that are presently covering the company, MarketBeat.com reports. One equities research analyst has rated the stock with a sell recommendation, seven have assigned a hold recommendation, twenty-nine have issued a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month price objective among brokers that have issued a report on the stock in the last year is $307.00.

A number of equities research analysts recently weighed in on the company. Zacks Research cut Zscaler from a "hold" rating to a "strong sell" rating in a research note on Wednesday, September 3rd. BTIG Research restated a "buy" rating on shares of Zscaler in a research note on Thursday, July 10th. Needham & Company LLC restated a "buy" rating and set a $350.00 price objective on shares of Zscaler in a research note on Wednesday, September 3rd. KeyCorp upped their price objective on Zscaler from $345.00 to $350.00 and gave the stock an "overweight" rating in a research note on Wednesday, September 3rd. Finally, Guggenheim restated a "neutral" rating on shares of Zscaler in a research note on Wednesday, September 3rd.

Insider Buying and Selling

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,865 shares of the firm's stock in a transaction dated Tuesday, September 16th. The stock was sold at an average price of $280.70, for a total value of $804,205.50. Following the completion of the sale, the chief executive officer owned 350,700 shares of the company's stock, valued at approximately $98,441,490. This trade represents a 0.81% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Raj Judge sold 4,524 shares of the firm's stock in a transaction dated Tuesday, September 16th. The stock was sold at an average price of $280.70, for a total value of $1,269,886.80. Following the completion of the sale, the executive vice president directly owned 73,832 shares of the company's stock, valued at approximately $20,724,642.40. This represents a 5.77% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 32,878 shares of company stock valued at $9,266,002. Company insiders own 18.10% of the company's stock.

Institutional Investors Weigh In On Zscaler

Several institutional investors have recently added to or reduced their stakes in ZS. T. Rowe Price Investment Management Inc. acquired a new stake in Zscaler in the first quarter worth about $516,622,000. Federated Hermes Inc. raised its stake in shares of Zscaler by 314.0% in the second quarter. Federated Hermes Inc. now owns 1,171,983 shares of the company's stock worth $367,932,000 after purchasing an additional 888,888 shares during the last quarter. Vanguard Group Inc. raised its stake in shares of Zscaler by 8.3% in the second quarter. Vanguard Group Inc. now owns 10,715,132 shares of the company's stock worth $3,363,909,000 after purchasing an additional 824,626 shares during the last quarter. Nuveen LLC purchased a new position in shares of Zscaler in the first quarter worth about $153,340,000. Finally, Goldman Sachs Group Inc. raised its stake in shares of Zscaler by 23.4% in the first quarter. Goldman Sachs Group Inc. now owns 3,048,238 shares of the company's stock worth $604,831,000 after purchasing an additional 578,883 shares during the last quarter. Institutional investors and hedge funds own 46.45% of the company's stock.

Zscaler Price Performance

Shares of ZS stock opened at $284.42 on Thursday. Zscaler has a twelve month low of $164.78 and a twelve month high of $318.46. The stock has a market capitalization of $45.02 billion, a price-to-earnings ratio of -1,053.41 and a beta of 1.05. The stock has a fifty day simple moving average of $280.34 and a two-hundred day simple moving average of $258.65. The company has a current ratio of 2.01, a quick ratio of 2.01 and a debt-to-equity ratio of 0.95.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its earnings results on Tuesday, September 2nd. The company reported $0.89 earnings per share for the quarter, topping the consensus estimate of $0.80 by $0.09. Zscaler had a negative return on equity of 0.47% and a negative net margin of 1.55%.The business had revenue of $719.23 million during the quarter, compared to analysts' expectations of $707.15 million. During the same period in the prior year, the business earned $0.88 EPS. The business's revenue for the quarter was up 21.3% compared to the same quarter last year. Zscaler has set its FY 2026 guidance at 3.640-3.680 EPS. Q1 2026 guidance at 0.850-0.860 EPS. On average, analysts predict that Zscaler will post -0.1 EPS for the current fiscal year.

Zscaler Company Profile

Zscaler, Inc operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.