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

Key Points

• Zscaler, Inc. has received an average rating of "Moderate Buy" from 39 analysts, with 29 buy ratings and one strong buy rating, suggesting positive sentiment towards the stock.
• The company's stock opened at $300.25 and has a one-year price range between $164.78 and $319.89, indicating significant volatility over the past year.
• Zscaler reported $0.89 earnings per share for the most recent quarter, surpassing estimates and reflecting a 21.3% year-over-year revenue growth to $719.23 million.

Shares of Zscaler, Inc. (NASDAQ:ZS - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the thirty-nine analysts that are covering the company, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating, twenty-nine have given a buy rating and one has assigned a strong buy rating to the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $307.4286.

ZS has been the subject of several research analyst reports. BMO Capital Markets lifted their price objective on Zscaler from $295.00 to $315.00 and gave the stock an "outperform" rating in a research report on Wednesday, September 3rd. Canaccord Genuity Group boosted their target price on Zscaler from $320.00 to $340.00 and gave the company a "buy" rating in a research report on Thursday, September 4th. JMP Securities reaffirmed a "market outperform" rating and issued a $355.00 target price on shares of Zscaler in a research report on Wednesday, September 3rd. Evercore ISI boosted their target price on Zscaler from $290.00 to $320.00 and gave the company an "outperform" rating in a research report on Wednesday, September 3rd. Finally, Wall Street Zen lowered Zscaler from a "buy" rating to a "hold" rating in a research report on Saturday.

Zscaler Stock Performance

ZS stock opened at $300.25 on Monday. The stock has a 50-day moving average price of $286.62 and a 200-day moving average price of $271.36. Zscaler has a 1-year low of $164.78 and a 1-year high of $319.89. The company has a current ratio of 2.01, a quick ratio of 2.01 and a debt-to-equity ratio of 0.95. The firm has a market cap of $47.53 billion, a PE ratio of -1,112.04 and a beta of 1.06.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its quarterly earnings data 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 firm had revenue of $719.23 million during the quarter, compared to analyst estimates of $707.15 million. During the same period last year, the company posted $0.88 EPS. The business's quarterly revenue was up 21.3% on a year-over-year basis. Zscaler has set its FY 2026 guidance at 3.640-3.680 EPS. Q1 2026 guidance at 0.850-0.860 EPS. As a group, equities research analysts expect that Zscaler will post -0.1 earnings per share for the current year.

Insider Transactions at Zscaler

In related news, EVP Raj Judge sold 4,524 shares of the business'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 $20,724,642.40. The trade was a 5.77% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Robert Schlossman sold 7,006 shares of Zscaler stock in a transaction dated Thursday, October 2nd. The shares were sold at an average price of $305.57, for a total value of $2,140,823.42. Following the transaction, the insider owned 76,132 shares of the company's stock, valued at $23,263,655.24. This trade represents a 8.43% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 39,884 shares of company stock valued at $11,406,825. 18.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Zscaler

Hedge funds have recently added to or reduced their stakes in the stock. Quaker Wealth Management LLC boosted its stake in Zscaler by 200.0% during the 2nd quarter. Quaker Wealth Management LLC now owns 97 shares of the company's stock valued at $30,000 after purchasing an additional 194 shares during the last quarter. Exane Asset Management boosted its stake in Zscaler by 185.7% during the 2nd quarter. Exane Asset Management now owns 100 shares of the company's stock valued at $31,000 after purchasing an additional 65 shares during the last quarter. Kozak & Associates Inc. acquired a new position in Zscaler during the 2nd quarter valued at about $35,000. ORG Partners LLC boosted its stake in Zscaler by 284.8% during the 1st quarter. ORG Partners LLC now owns 127 shares of the company's stock valued at $26,000 after purchasing an additional 94 shares during the last quarter. Finally, SVB Wealth LLC acquired a new position in Zscaler during the 1st quarter valued at about $26,000. Institutional investors and hedge funds own 46.45% of the company's stock.

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.

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